Declining balance loan with over payment option
Programmed by Alvin F Riesbeck
copyright 1990
The purpose of this program is to calculate the
remaining outstanding balance for each payment month of a
standard declining balance loan. This program is different
from most other standard mortgage programs because of the
over payment option.
My father tried, for years, to tell me to save money and
repay outstanding loans early. I always assume that a small
overpayment never did much to the remaining balance. But, I
have been playing with this program for a couple of years
after I found out I could save lots for money by over
paying even a small amount each month. As little as $5.00 a
month will save thousands of dollars over a 30 year loan. If
you are buying a house or paying for you current house,
running this program with different payment and over payment
amounts will give you a good idea of time required to pay off
the loan and a summary of interest you will be paying. This
program does not take into account the action of federal or
state taxes.
P.S. I never will tell my father he was right, but somehow I
think he knows.
The program assumes monthly payments, the interest rate
and the overpayment amount will not change over the life of
the loan, the loan will be paid off in 30 years or less. The
over payment amount can be any dollar value. The starting
point for the program does not have to be the beginning
balance of the loan, but can be any dollar amount that is
equal or less than the beginning balance. The program
includes routines that will calculate the monthly payment
amounts for 10, 15, 20, 25 and 30 years. It also has a
routine that will calculate any yearly payment amount for 1
through 30 years. I have edit routines to prevent the user
from imputing replies the program can not handle. The
program will output its results to the screen or the screen
and printer at the same time.
The disclaimer:
As with all programs release into the public I must state
that you are using this program at your own risk. I do not
claim that any repayment schedule your loan has will match
the output from this program. I believe the results should
match the repayment schedule, but I cannot control the terms
of your loan. You should make sure you can overpay on your
loan without penalty. I am only presenting the results from
this program as a guide for your use. I did not put anything
in this program which will cause damage to your computer,
disk drives or any other piece of equipment attached to your
computer system.
My Pitch:
As far as I am concern, this program is finish. Their
are some more things I could do to the program, but I have
other more interesting projects to do. Therefore, If
enough people send me a reason to do more to this program I
probably would.
1. If this program open your eyes to the possibility of
saving money by early repayment, you could donate to my
computer fund.
2. If you want the source code it is going to cost you some
money, $15.00.
3. If you have a GFA basic program you wrote and it is as
complex as mine, I will trade source code with you.
Remember, something you wrote.
4. If you like or hate the program, but think your computer
fund is more important than mine, why not send me a post card
and tell me what you like/hate about the program.
5. Finally, if there are some business programs you would
like to see developed, why not tell me about them. I could
always use new ideas.
Alvin F. Riesbeck
Lock Box 562
Hines ILL 60141
Program responses:
Question 1. Enter current balance of loan =
Enter the starting point for the program to
calculate remaining amount due. Must not
contain a comma and must be equal to or less
than original balance
Example 44949.56
Question 2. Enter original balance of loan =
Enter the original amount of your loan. Must
not contain comma and must be equal to or
greater than the current balance
Example 50000.00
Question 3. Enter amount of yearly interest =
Enter the yearly interest rate of your loan
Example 10 percent
can be entered as .10 or 10.0
Question 4. Monthly payment for 10 year loan is x,xxx.xx
Monthly payment for 15 year loan is x,xxx.xx
Monthly payment for 20 year loan is x,xxx.xx
Monthly payment for 25 year loan is x,xxx.xx
monthly payment for 30 year loan is x,xxx.xx
If you want to use the above monthly payments
amounts as your mortgage schedule enter y or Y
else any other key.
A response of y or Y will display the
following and then go to question #7
any other reply will proceed to question #5
The 30 year payments will be the first column
The 25 year payments will be the second column
The 20 year payments will be the third column
The 15 year payments will be the fourth column
The 10 year payments will be the fifth column
in the generated payment schedule.
Note: If you want a loan repayment with
an overpayment option you should not reply
y or Y to this question.
Question 5. If you know the monthly payment you want enter
that monthly payment amount else enter 0 zero.
Note: you could use question 4 payment
display as a guide for payment amounts.
Example: suppose you are calculating a 25 year
loan. You should not reply y or Y in question
4 and reply with the monthly payment for a 25
year loan for question 5. The amount of over
payment will be requested in question #6.
Any dollar amount will be accepted that will
pay the loan off in 30 years or less. a reply
of 0 (numeric zero) will generate the following
question.
Enter the number of years to pay the loan off,
the monthly payment amount will be calculated
and displayed.
At this point you can only enter a two digit
year. Valid years are 1 through 30.
Question 6. Enter amount of over payment increment =
For each over payment column the monthly
payment amount will have the following amounts
add to it.
A zero or negative entry will cause all over
payment amounts to be set to zero.
An entry greater than zero will cause the 1st
over payment amount to be set to that value,
the 2nd over payment amount to be set to two
times the entered value, the 3nd over payment
amount to be set to three times the entered
value, the 4th over payment amount to be set
to four times the entered value.
Example entered is $7.50,
1st amount = monthly payment + 7.50,
2nd amount = monthly payment + 15.00,
3rd amount = monthly payment + 22.50,
and 4th amount = monthly payment + 30.00
Note: monthly payment
is answer from question 5.
Question 7. Starting month of first payment
January 1 February 2 March 3
April 4 May 5 June 6
July 7 August 8 September 9
October 10 November 11 December 12
Enter as a numeric value
Will cause the repayment schedule for the first
year to start with the month selected.
Example the number 9
will start payments in September
Question 8. Enter starting year Example 1990
Enter calendar year you want your repayment
schedule to start.
Question 9. Do you also want a hard copy on printer
enter character y or Y for yes or return
for no hard copy
A reply of (y or Y) will give you a screen and
hard copy of repayment schedule.
the program uses GFA Basic LPRINT.
Return will only display repayment schedule
to monitor.
Question 10. If you only want the summary report
replay y or Y else press return for
the monthly detail report.
Replay of y or Y will only generate the summary
report by passing the yearly payment detail,
Return will display the yearly detail followed
by the summary report.
Note: After question 10, the 1st yearly detail or
summary page will appear. To display the next
detail or summary page press return. To stop
the schedule payments display enter (q or Q).
After the summary page or an entry of (q or Q)
An alert question will asked if want another
calculation. Clicking on no will terminate
the program, clicking yes will restart at
question 1.