Amortization graphing tools to compare two mortgages

getmore4less

Just in case anyone can point at one to shorten my search or knocking one up in a spreadsheet.

I am looking for a tool that can display multiple mortgages based on ANY 2 of the 4 variables.

Specificaly looking for
given the interest rate and a payment, graph the mortgage size against term


Each loan can have a different rate and payment.

amnblog

Why would anyone want such a thing?

getmore4less

It's the I can afford. £xpm how much can I borrow graph.


Given two payments and two interest rates you can work out wat someone has borrowed.

It is quite a common question here which is the best mortgage with essential info missing saves waiting for an op to provide the details.

Mortgage_Mark_2

After the initial fixed/variable period that table would be utterly redundant though, probably?

getmore4less

No more redundant than any other measure where any variable is involved.
(which is all mortgages in the UK)

Another variation is the I can afford X pm and want to borrow £Yk what's the rate term trade off. ie if rates go up when am I stuffed.


I can't believe that brokers are not using these basic tools to inform their clients.

Senior_Paper_Monitor

Depends on your excel skill level but obtain one the standard mortgage amortisation calculators (there are some good ones available for free on the internet that allow you to calculate the switch to SVR etc - these are the difficult bit to write) and embed them in a work book - then use a query page to fill in the relevant data (linked to the calculator(s) i.e use two if you want to compare two options) and a results page to tabulate the results linking from the calculators (and from there a graph is easy).


I have a continuously growing template calculator which lets me do various calculations/queries and save the result page to PDF as part of the advice and compliance process (a lot of work but impresses the staff, clients and compliance - and new calculator options are fairly easy once the core is set up) and is genuinely useful.


Mine now copes to up to three repayment loan components and three interest only loan components to the end calculation/comparison.

getmore4less

thanks, the excel should be ok even if a but rusty.

Surprised at how few tools are out there to do the alternative views and comparisons.

Of those that are out there some do it wrong, the MSE ultimate still does the simple compare two fix wrong. it gets the difference on the default at £922 when it should be £955 if you take account of the difference in payments.

given there are only 4 parameters to a mortgage why has no one has done the fix two, plot two?

Graphs are really powerful tools to compare things over numbers on a sheet of paper.

Mortgage_Mark_2

getmore4less wrote: »

No more redundant than any other measure where any variable is involved.
(which is all mortgages in the UK)

Another variation is the I can afford X pm and want to borrow £Yk what's the rate term trade off. ie if rates go up when am I stuffed.


I can't believe that brokers are not using these basic tools to inform their clients.

...which is why few brokers 'compare' anything beyond the initial rate.

amnblog

getmore4less wrote: »

I can't believe that brokers are not using these basic tools to inform their clients.

It's because clients aren't interested in graphs.

Radshire

amnblog wrote: »

It's because clients aren't interested in graphs.

.....and this is exactly the problem. Please do not taint all customers with the same brush. It does nothing for the reputation of mortgages brokers. You only have to look at the mortgage repayment calculator on MSE to see that charts are useful!
Not once have I been asked by a mortgage broker whether I want to see any analysis (let alone a chart) - this after expressing an interest and stating that I'd have to do the analysis myself. Whilst I totally appreciate that this will be of little use to some, to some it may make a really hard decision easier. A picture tells a thousand words.
One could argue (and I do mean could argue) that if mortgage advisers had taken a little more time to explain the analysis of a mortgage, there would have been fewer sub-prime mortgages floating around which were ultimately the cause of the last financial crisis. (reduce the mortage market and there wouldn't have been as many securitisation / ABS commercial paper). This is not something I necessarily believe, but the facts are that too many mortgages were sold to people who couldn't afford them this providing a large supply of mortgages which could be transformed by the bankers. The incinuation of the poster is that they would have been sold by brokers and advisers who didn't offer any meaningful analysis around affordability or the future - analysis which can be argued may have reduced the supply of mortgage assets.

Mortgage_Mark_2

5 months old and you reply to a comment that is from experience?

Clearly there will be clients who ARE interested in graphs/statistics, but to those clients our job is to explain why such graphs are absolutely redundant, not to produce something that is useless beyond the first few years...