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1990-12-30
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LOAN MASTER
Mortgage Comparison
Mortgage Reduction Strategies
Version 1.03
Date 12-28-90
Copyright 1989,90
Bottom Line Software
P. O. Box 1804
Burleson, Texas 76028-1804
817-447-5524
TABLE OF CONTENTS
License Agreement . . . . . . . . . . . . . . . . . . . . . . 1
Automatic Installation . . . . . . . . . . . . . . . . . 4
Subdirectories . . . . . . . . . . . . . . . . . . . . . 4
Manual Installation . . . . . . . . . . . . . . . . . . 4
Required Files . . . . . . . . . . . . . . . . . . . . . 4
Help Function . . . . . . . . . . . . . . . . . . . . . . . . 6
Menu Operations . . . . . . . . . . . . . . . . . . . . . . . 6
Using the Menus . . . . . . . . . . . . . . . . . . . . 6
Selecting Menu Options . . . . . . . . . . . . . . . . . 7
Data Entry Screens . . . . . . . . . . . . . . . . . . . . . 8
Data Entry Cursor Control Keys . . . . . . . . . . . . . 9
Browse Screens . . . . . . . . . . . . . . . . . . . . . . . 12
Browse Cursor Control Keys . . . . . . . . . . . . . . . 13
Mortgage Reduction Menus . . . . . . . . . . . . . . . . . . 15
Menu Functions . . . . . . . . . . . . . . . . . . . . . 15
The Main Menu . . . . . . . . . . . . . . . . . . . . . . . . 15
Make an Amortization Schedule . . . . . . . . . . . . . 15
Compare Mortgages . . . . . . . . . . . . . . . . . . . 15
Compare Mortgage Reduction Strategies . . . . . . . . . 16
Browse a Schedule File . . . . . . . . . . . . . . . . . 16
Recalculate a Schedule File . . . . . . . . . . . . . . 16
Update the Parameter File . . . . . . . . . . . . . . . 16
Printed Reports Menu . . . . . . . . . . . . . . . . . . 17
Return to DOS . . . . . . . . . . . . . . . . . . . . . 17
The Reports Menu . . . . . . . . . . . . . . . . . . . . . . 17
Mortgage Reduction Overview . . . . . . . . . . . . . . . . . 19
Prepayment Variations . . . . . . . . . . . . . . . . . . . . 20
Prepayment Examples . . . . . . . . . . . . . . . . . . 20
Regular Periodic Prepayments . . . . . . . . . . . 20
Irregular and One Time Payments . . . . . . . . . . 21
Interest Computation Basis . . . . . . . . . . . . . . . . . 21
Recalculating A Schedule . . . . . . . . . . . . . . . . . . 23
Printing Reports . . . . . . . . . . . . . . . . . . . . . . 24
Printing an Amortization Schedule . . . . . . . . . . . 24
Printing a Mortgage Comparison . . . . . . . . . . . . . 24
The Parameter File . . . . . . . . . . . . . . . . . . . . . 25
Change the company Name . . . . . . . . . . . . . . . . 25
Change the mortgage comparison header . . . . . . . . . 25
Change the amortization schedule header . . . . . . . . 25
Change the printer setup . . . . . . . . . . . . . . . . 25
Customizing the Reports . . . . . . . . . . . . . . . . . . . 25
Changing the Company Name . . . . . . . . . . . . . . . 25
Prepared by . . . . . . . . . . . . . . . . . . . . . . 25
Changing the Mortgage Comparison Report Header . . . . . 25
Changing the Amortization Schedule Header . . . . . . . 26
Change the Printer Setup . . . . . . . . . . . . . . . . 27
Change the Printer Control Codes. . . . . . . . . . . . 28
Printer Graphics Characters. . . . . . . . . . . . . . . 28
Visual Update . . . . . . . . . . . . . . . . . . . . . 28
Path to data files . . . . . . . . . . . . . . . . . . . 28
Loan variation column headings . . . . . . . . . . . . . 29
Tutorial, How to Use the Program . . . . . . . . . . . . . . 29
Comparing Mortgages . . . . . . . . . . . . . . . . . . 29
Compare Prepayment Strategies . . . . . . . . . . . . . 34
Schedule File Specifications . . . . . . . . . . . . . . . . 40
Detailed Field Descriptions . . . . . . . . . . . . . . 42
Bottom Line Software, Inc. License Agreement
This is a legal agreement between you, the end user and
Bottom Line Software, Inc.(BLS). By opening this sealed package
or by using this Software, you are agreeing be bound by the terms
of this license agreement..
Grant of license: Bottom Line Software, Inc. grants you, (the
person or entity who purchased this license) a non exclusive, non
transferable license to use this software on a single terminal,
connected to a single CPU. You may not network the software or
otherwise use it on more than one computer at the same time.
If any provision of this license shall be held to be
unenforceable, such holding shall not affect the enforceability
of any other provision. Your licensed right to use this software
terminates upon your violation of any of the terms of this
agreement.
You may terminate this license agreement without notice by
destroying the software and any printed materials provided with
it.
Proprietary rights: You agree to take all necessary steps to
ensure that the provisions of this license agreement are not
violated by yourself or any other person under your control or in
your service. The software and manual contain important trade
secrets and intellectual property of BLS. All copyright, patent,
trade secret, trademark, and other intellectual proprietary
rights to the licensed software are and shall remain the valuable
property of BLS.
Copyright: This software is owned by BLS and is protected by
United States Copyright laws and international treaty provisions.
You must treat the software as any other copyrighted material
with these exceptions. You may make one copy of this software for
on site backup purposes and one more copy for off site backup.
You may copy the software to a hard disk. You may not copy the
manual or other printed materials accompanying the software.
Other restrictions: You may not rent, lease, or sell the
Software. You may not reverse engineer, decompile, or disassemble
the Software.
Mortgage Comparison and Reduction 1
Dual Media Software: If the Software includes both 3 1/2 and 5
1/4 inch disks, you may use only one or the other as appropriate
for your computer. You may not use the other disks on another
computer or rent, loan, lease, or otherwise transfer them to
another user.
Limited Warranty: BLS warrants that the software sill perform
substantially in accordance with the accompanying written
materials for a period of 90 days from the date of receipt as
determined by the invoice date. The media is warranted to be free
of defects and readable for the same period. Implied warranties
on the software of media are also limited to the same period.
Customer Remedies: BLS's entire liability and your exclusive
remedy shall be, at BLS's option either (a) the return of the
price paid or (b) the replacement of the software or media that
does not meet the limited warranty and which is returned to BLS
with a copy of your invoice.
No other warranties: BLS disclaims any other warranties, either
expressed or implied including but not limited to implied
warranties of merchantability and fitness for a particular
purpose.
No liability for consequential damages: In no event shall BLS or
its dealers or suppliers be liable for any damages whatsoever
(including, without limitation, damages for loss of business
profits, business interruption, loss of business information, or
other pecuniary loss) arising out of the use of or inability to
use this product, even if BLS has been advised of the possibility
of such damages.
This limited warranty gives you specific legal rights. Since some
states do not allow certain exclusions or limitations of
liability, you may have other rights that vary from state to
state.
IN NO EVENT SHALL BOTTOM LINE SOFTWARE BE LIABLE FOR
LOSS OF BUSINESS PROFITS OR LOSS OF INTEREST INCOME OR
LOSS OF PRINCIPAL PAYMENTS, OR LOSSES CAUSED BY USE OF
SCHEDULES, REPORTS, SCREEN DISPLAYS OR ANY OTHER OUTPUT
FROM THIS SOFTWARE, OR LOSSES CLAIMED BY DEBTORS OR
CREDITORS OF LICENSED OR UNLICENSED USERS OF THIS
SOFTWARE.
Mortgage Comparison and Reduction 2
Both the software and the manual are furnished under the
terms of this license agreement. Both are copyrighted by Bottom
Line Software and neither may be reproduced or copied except in
accordance with the terms of the license agreement. Both the
Software and the manual are, and remain the property of Bottom
Line Software.
Information in this document is subject to change without notice.
Mortgage Comparison and Reduction 3
Installation
Automatic Installation
The Distribution disk contains software to install the
Mortgage Reduction Strategies system on either the hard disk C:
or to a floppy disk in drive B:
To use the installation software, place the distribution
disk in drive A:. Log onto drive A: by typing the command:
A:(return)
The colon is required. (return) means to press the return or
enter key. Do not type the letters "return".
This command will display a menu on the screen. The menu
will offer several selections. Two of these will be to install
the system on either disk C: or disk B:
Subdirectories
The installation software installs the system in the current
directory. If you want the system installed in a special
subdirectory, you must first create that subdirectory and then
make it the current directory by using the dos commands MD to
make the directory and CD to select the directory. See your DOS
manual for details of how to use these commands.
Manual Installation
Required Files:
The Mortgage comparison system must have these files to
operate:
MCMENU.EXE
MCPARM.DBF
SCHEDULE.BLK
Mortgage Comparison and Reduction 4
The help system is optional and consists of these files:
MCHELP.DBF
MCHELP.NTX (This file is created by the
system.)
MCHELP.DBT
To install the software manually, use the DOS copy command
to copy these files to your working floppy disk or to your hard
disk.
Floppy disk systems
If your system has only two 362k floppy disks, this section
is IMPORTANT. 362k floppy disks disk will not hold enough data to
allow comparing and sorting 360 payment (30 year) mortgages.
To compare mortgage variations requires a great deal of
storage space. To compare a base mortgage with one variation
requires 390k disk space. This means that 30 year mortgages
cannot be compared on systems using only 5.25" 362k floppy disks.
Systems with floppy disks of 720k, 1.2 meg, or 1.44 meg should
have no difficulties.
Systems with two floppy disk drives may place the program on
one floppy and the data files on another. To do this select the
menu option to update the parameter file. from the parameter file
menu, select the option to change the path to the data files.
This screen allows you to set a default disk drive and a
path to the data files. Set the default disk drive to "B"
(without the quotes). The path should be blank. If the path is
not blank, use the backspace of the delete key to make it blank.
The file MCPARM.DBF must be on the same disk as the program
file, MCMENU.EXE. The file SCHEDULE.BLK must be on the data disk.
If this data arrangement is used, the program will look at
the parameter file in the startup directory, this parameter file
tells the program to look for data files on drive B:. If you
attempt to modify the parameter file, the program will look on
Mortgage Comparison and Reduction 5
drive B. Since the file is not there, you will receive an error
message. If you copy the parameter file to drive B: and modify
it, you will than have to copy the modified file back to drive A:
before restarting the program. If you miss this step, the program
will still find the old parameter file when it starts.
Help Function
Loan Master has a built in help function. Help screens are
available to instruct the operator on various functions and
operations. On screen help is not always available. When it is,
it is accessed by pressing the function key marked F1.
Help screens appear as windows. In some cases, the amount
of text required will not fit in the space available. In these
cases help screens can be scrolled to display more text by
pressing the down arrow or the PgDn keys.
To exit a help screen, press the Esc key. In some cases you
may need to press it twice.
Menu Operations
Loan Master is completely menu operated. You never have to
remember any commands.
A menu is a list of tasks, or functions the program can
perform. Entering a new loan, is a menu function. Printing a
trial balance is a menu function. Since one menu cannot display
all the possible functions the system can perform, related tasks
are listed together on menus.
Using the Menus
Menus consist of a list of options, or items, preceded by
an option number. The option number is listed to the left of the
menu item. To keep the screen clean and readable, menus are
limited to no more than eight options plus the ninth, return
option. Option 9 is always return.
Mortgage Comparison and Reduction 6
The return option takes you back to the point in the program
from which you came to the current menu. This may be to a
previous menu or to some other function.
The return option on the main menu returns you to DOS, or to
your automatic menu system, if you have one installed on your
machine.
Selecting Menu Options
There are two ways to select a menu option.
If you know exactly what you want to do and how to do it,
simply press the numeric key corresponding the menu option. To
select option 3, press the 3 key. You may select either the 3 key
on the typewriter keyboard, or if the NumLock key is set to
numbers, you may use the 3 key on the numeric key pad. DO NOT
use the function key labeled F3.
If you are a new user and not yet confident in your
knowledge of the menu options and the functions they perform, you
may use the cursor keys, or to select a menu option.
Cursor key selection is done by highlighting a menu
selection and pressing the return key.
Highlighting means that one selection will be displayed in a
manner that is noticeably different from the rest of the options.
Highlighting usually results in the selected option being
displayed in reversed colors. Some computer video displays may
handle this in a different manner.
When an option is highlighted, selected, a message will
appear at the bottom of the screen. This message will give
additional information about the selected option.
To select an option, press either the or the keys. If
you press the up key, the highlight bar will jump to the next
higher option on the screen (Lower number, higher physical
position). The down key has the opposite effect.
The highlight bar will "roll around" from top to bottom or
from bottom to top. If you press Up when the bar is on the top
selection, it will "roll around" to the bottom selection and vice
versa.
Mortgage Comparison and Reduction 7
It is always possible to select any option with either the
up arrow or the down arrow key.
Data Entry Screens
When the program needs information from the operator, it
displays a data entry screen. Usually data entry screens occupy
the entire screen. Occasionally, as in the case of a simple yes
or no answer, the computer will open a small window on the screen
and ask "Is this the loan you want? Y/N". in this instance the
remainder of the screen will stay as is was before.
Data entry screens use prompts ( messages, questions ), to
ask for data. It uses fields to receive data. A field is a
specific, isolated, identified, delineated, area in which data is
entered on the screen, stored, in memory or on disk.
Usually prompts will appear on the screen followed by the
data field to its immediate right. In some cases, the prompt may
be below, above, left, or right of the data field. It is the
responsibility of the programmer to make it evident to the user
which field refers to which field.
When the prompts and fields are printed on the screen, the
fields may or may not already contain data. If the program is
building a new record, the data fields will be empty. If the
operator has asked to edit an old record, the fields will contain
the old data.
If the program is asking a question to verify a command you
have already given, or implied, the response field will contain a
default answer. A default answer is the answer the computer will
use unless you tell it something different. If you ask to delete
loan number 33, the program will find it and display it on the
screen. It will then ask you, "Is this the loan you want to
delete? Y/N". The response field will contain a "N". "N" then, is
the default answer. If you simply press the <Return> key, you
have answered "N". The purpose for this manner of operation is to
require the operator to think about the answer and to take a
positive step, pressing "Y" before deleting a loan.
Mortgage Comparison and Reduction 8
Data Entry Cursor Control Keys
During data entry, you will move the cursor around the
screen and enter or change data until you have it like you want
it. You will use the cursor control keys to control the cursor.
The cursor control keys are controlled by the NumLock and
the Shift keys. The NumLock key toggles the numeric key pad back
and forth between the numeric mode and the cursor control mode.
The Shift key does the same thing but on a temporary basis.
For example:
You have the numeric key pad set for cursor control. You
move the cursor to a numeric entry. Next press and hold down the
shift key, this action changes the numeric keypad to numeric
entry. You now enter your number (still holding down the shift
key) and then release the Shift key. The numeric key pad shifts
back to cursor control.
If you are a WordStar fan, you will find the Wordstar
diamond works pretty much as you would expect but none of the
other WordStar commands are implemented.
Mortgage Comparison and Reduction 9
DATA ENTRY CURSOR CONTROL KEYS
^ Indicates the Control key labeled Ctrl. Thus ^LeftArrow means
hold down the control key while pressing the LeftArrow key.
This key: Does this:
Home Move the cursor to the beginning of the current
field.
^Home Move the cursor to the beginning of the first
field on this screen.
End Move the cursor to the last character of the
current field.
^End Move the cursor to the beginning of the last field
on this page.
UpArrow Move the cursor to the previous field.
DownArrow Move the cursor to the next field. Will not end
the current input screen by continuing to the next
screen.
RightArrow Move the cursor one character to the right in the
current field.
^RightArrow Move the cursor to the beginning of the next word
in the current field.
LeftArrow Move the cursor to the left one character in the
current field.
^LeftArrow Move the cursor to the beginning of the current
word. If it is already at the beginning, move it
to the beginning of the previous word.
^T Delete from the cursor to the end of the current
word.
^Y Delete from the cursor to the end of the current
field.
PgUp PgDn Save the data on the current screen and continue
to the next screen.
Mortgage Comparison and Reduction 10
Esc Continue to the next screen. Do not save the
changes, if any that were made to the current
screen.
^U Restore the current field to its original value.
This only works before the cursor is moved out of
the field. Once the cursor has been moved, the
only way to restore the original value is to
retype it.
Backspace Delete the character to the left of the cursor.
Delete Delete the character under the cursor
Insert Toggle between insert and typeover modes.
Mortgage Comparison and Reduction 11
Browse Screens
The browse screen options allow you to browse through the
data files. Each data record is displayed on one line across the
screen. Several records are displayed on each screen with the
fields appearing in columns.
The browse screens use the real field names from the data
files. These names are somewhat more cryptic than the data input
screen prompts but they are readable. They are listed in the
section on the data files. See Data File Specifications for
details of the field names.
The browse screen looks like this:
Record 1 of 36
MTRAN_NO MTRAN_DATE MACCR_RATE MPMT_AMT MACCR_DAYS MINT_DUE
0 08/01/89 0.1200 123.44 0 0
1 09/01/89 0.1200 123.44 31 99.80
2 10/01/89 0.1200 123.44 30 98.10
3 11/01/89 0.1200 123.44 31 96.38
The record contains many more fields than can be displayed
on the screen on a single line. To accomplish the goal of one
loan on one line, the line scrolls across the screen. As you use
the cursor keys to move your view to the right, the columns on
the left side of the screen scroll off the screen to the left
while the formerly invisible columns to the right of the screen
scroll onto the screen from the left.
Try it. It much simpler to do than to describe.
Mortgage Comparison and Reduction 12
Browse Cursor Control Keys
This key Does this:
Up Move the cursor up one line, (record, loan,
transaction)
Down Move the cursor down one line, (record, loan,
transaction)
Right Move the cursor one column (field) to the right. If the
cursor is in a field and the editing mode is on, move
the cursor one character to the right.
Left Move the cursor one column (field) to the left. If the
cursor is in a field and the editing mode is on, move
the cursor one character to the left.
<Return> Turn on the editing mode (feature) and edit the data in
the currently selected field. If the edit mode is
already on, quit editing the current field, keep the
edited field and continue on the next field to the
right.
^ CtrlUp Not used.
^ CtrlDn Not used.
^ CtrlRight Scroll the entire data base one column to the
left. (Moves the cursor to the right)
^ CtrlLeft Scroll the entire data base one column to the
right. (Moves the cursor to the left)
PgDn Move down one page (further into the data base).
PgUp Move up one page (back towards the top of the
database).
^PgUp Move to the top, first record in the data base.
^PgDn Move to the bottom, last record of the data base.
End Move to the right most column on the screen.
Home Move to the left most column on the screen.
Mortgage Comparison and Reduction 13
^End Move to the last field to the right of the current
record and scroll the screen so that field is in the
right most column of the screen.
^Home Move to the first field of the current record and place
the first field of each record in the left most column
on the screen.
Esc Exit the browse function and return to the menu.
Mortgage Comparison and Reduction 14
Mortgage Reduction Menus
The Mortgage Reduction system is completely menu operated.
All functions and reports are accessed through one of these
menus. The menus are:
Main menu. All system functions and sub menus are
accessed through this menu.
Report Menu Printed Report Menu. All printed reports
are selected from this menu.
Parameter file menu The user selectable option settings are
changed through this menu.
Menu Functions
The Main Menu offers the following selections.
1) Make an Amortization Schedule.
This function presents a data input screen and requests
information about a mortgage. When it has received the
data, it creates an amortization schedule ON THE DISK.
It does not print the schedule. It does not display
the schedule on the screen. Other functions are
available for those tasks.
2) Compare Mortgages.
This function is similar to the Make Schedule function
but is used for comparing multiple mortgages. This is
for comparing completely different mortgages, not for
variations on a base mortgage.
You will be asked for the number of mortgages to
compare. The current maximum is five. You will then be
asked to supply a filename for the mortgage schedules.
You are allowed only seven characters for the file
name. The system will add a version number, 1 to 5 and
an extension ".dbf" to the characters you give.
You do not have to use all seven characters.
Mortgage Comparison and Reduction 15
3) Compare Mortgage Reduction Strategies.
This function is similar to the Compare Mortgages
function. The difference is that you are asked for the
number of variations of this mortgage. You will then
enter a base mortgage plus variations in payment
schedule.
Note that the base mortgage counts as one variation.
Thus a base mortgage plus a variation of one extra
payment per year and another variation of $25.00 extra
each month would count as three variations.
Again, these schedules are created on the disk. They
are not printed or displayed.
4) Browse a Schedule File.
This is the function that is used to display a schedule
on the screen. It asks for a filename and then
displays the file on the screen, one transaction per
line.
The browse function also allows you to change any
transaction. You may change the Date, the amount or
the interest rate of any transaction. There is also a
function to recalculate the schedule after you have
changed it.
5) Recalculate a Schedule File.
You may use the browse function to change the dates or
amounts of payments or to insert or delete payments.
Any of these modifications requires that the schedule
be recalculated. This option allows you to recalculate
any schedule file.
6) Set the year format.
You may select a two digit or four digit year. With a
two digit year, dates are entered MM/DD/YY. With a four
digit year, dates are entered MM/DD/YYYY.
7) Update the Parameter File.
Mortgage Comparison and Reduction 16
The parameter file stores variable information that
will be different from one user to the next but which
will usually remain constant for any given user. This
includes the user's name and address and information
about the user's printer.
8) Printed Reports Menu.
This function displays another menu, the printed
reports menu. All printed reports are requested from
the printed reports menu.
9) Return to DOS.
This function closes all files that may still be open
and returns to the DOS prompt.
The Reports Menu.
The reports menu has these selections.
1) Print an amortization schedule.
Print the entire schedule. Each transaction allocated
to interest and principal with the remaining balance
displayed for each transaction.
2) Print a mortgage comparison summary.
Up to five mortgages or one mortgage with four
reduction strategies. Display annual summary totals in
parallel columns with life of mortgage totals at bottom
of page.
3) Print a mortgage comparison detail.
Compare two mortgages with annual savings totals.
Prints ending balance and interest savings for each
year end.
Mortgage Comparison and Reduction 17
{Mortgage Curtailment Strategy Report}
{Increase profit by paying less interest.}
Prepared by: Prepared for:
{Bottom Line Financial Services} {Name of Mortgagee goes here}
{P.O. box 1804 } {Address line 1 }
{Burleson, Tx 76028-1804} {Address line 2 }
{Address line three ---------->} {Address Line 3 }
{ADDRESS LINE FOUR ----------->} {Address Line 4 }
End {Name of }{Variation }{Variation }{Variation }{Variation }
of {Base Mort }{1 here }{2 here }{3 here }{4 here }
Year {Here }{You enter }{your text }{in these }{columns }
Mortgage balance at end of year:
1989 9,843,856 9,843,856 9,832,247 9,843,856 9,843,856
1990 9,803,870 9,690,545 9,778,001 9,748,087 9,692,303
1991 9,758,814 9,516,658 9,716,930 9,639,614 9,520,415
1992 9,708,043 9,321,851 9,648,111 9,517,942 9,327,842
1993 9,650,832 9,102,337 9,570,554 9,380,839 9,110,846
1994 9,586,367 8,854,984 9,483,161 9,226,348 8,866,330
1995 9,513,725 8,575,126 9,384,684 9,051,706 8,589,687
1996 9,431,871 8,259,776 9,273,718 8,854,915 8,277,959
1997 9,339,635 7,904,431 9,148,678 8,633,165 7,926,696
1998 9,235,702 7,505,153 9,007,781 8,383,851 7,532,000
1999 9,118,587 7,054,104 8,849,014 8,102,359 7,086,130
2000 8,986,619 6,546,983 8,670,111 7,785,724 6,584,829
2001 8,837,915 5,974,413 8,468,519 7,428,375 6,018,835
2002 8,670,351 5,330,361 8,241,360 7,026,263 5,382,174
2003 8,481,535 4,604,626 7,985,392 6,573,152 4,664,769
2004 8,268,774 3,785,717 7,696,960 6,062,018 3,855,263
2005 8,029,028 2,862,949 7,371,948 5,486,060 2,943,092
2006 7,758,877 1,824,285 7,005,717 4,837,613 1,916,350
2007 7,454,464 653,893 6,593,038 4,106,927 759,391
2008 7,111,444 0 6,128,021 3,283,572 0
2009 6,724,920 0 5,604,029 2,355,237 0
2010 6,289,375 0 5,013,581 1,309,166 0
2011 5,798,593 0 4,348,249 130,985 0
2012 5,245,566 0 3,598,537 0 0
2013 4,622,403 0 2,753,742 0 0
Mortgage Comparison and Reduction 18
2014 3,920,206 0 1,801,806 0 0
2015 3,128,954 0 729,142 0 0
2016 2,237,350 0 0 0 0
2017 1,232,670 0 0 0 0
2018 100,570 0 0 0 0
2019 0 0 0 0 0
Interest Cost : 26,696,335 15,686,557 24,020,676 19,293,379 15,771,023
Interest savings : 0 11,009,777 2,675,658 7,402,956 10,925,312
Final maturity : 01/01/19 06/01/08 08/01/16 01/01/12 07/01/08
Years to maturity: 30.0 19.4 27.6 23.0 19.5
You may customize text listed in {brackets}.
Mortgage Reduction Overview
Mortgage reduction strategies are as varied as the people
who use them. There are many ways to accomplish the goal of
reducing interest expense but they all have one thing in common.
They all depend on some type of prepayment schedule.
Some strategies involve regular periodic prepayments,
others involve irregular periodic or perhaps one time
prepayments. Loan Master will handle them all. If you can think
of it, Loan Master can do it.
This flexibility is purchased at the price of some
complexity but on the other hand that complexity comes with added
utility.
Loan Master works like this. All mortgages and alternative
strategies to be compared are stored in disk files. These files
can then be displayed on the screen, modified, recalculated,
printed, or compared. When an acceptable schedule is made, it
can be kept indefinitely for future reference. If in the future,
changes need to be made, the file can be modified and
recalculated.
Mortgage Comparison and Reduction 19
Prepayment Variations
There are essentially three types of prepayment variations,
ont time prepayments, regular periodic prepayments, and irregular
periodic prepayments. Loan Master can easily handle any of these
variations.
Prepayment Examples
Regular Periodic Prepayments
Assume the base mortgage has monthly payments.
Fixed amount each month:
This variation can be handled two different ways.
1) Create another mortgage schedule and enter the
payment amount as the sum of the regular payment
amount plus the prepayment amount.
2) Use the base mortgage with its original payment
amount and add a prepayment variation for the
amount of the prepayment.
Fixed amount quarterly, semiannually, or annually, etc.
This variation can be handled by adding a prepayment
variation. When asked to enter the prepayment variation,
enter the date of the first additional payment, the number
of additional payments and the number of additional payments
per year. If the additional payment is quarterly, the
payments per year would be four.
Thirteen regular monthly payments per year with the thirteenth
being made on a regular payment date.
This is tricky because it is not thirteen payments per
year! If you tell the computer 13 payments per year, it will
think you mean one payment each four weeks. What you really
mean is 11 payments of the regular amount followed by a
twelfth payment of double the regular amount.
Mortgage Comparison and Reduction 20
To set up this variation, you must set up a base
mortgage and add a prepayment variation. The prepayment
variation is one annual payment in the amount of the regular
monthly payment.
Irregular and One Time Payments
Irregular payments or one time prepayments are added
manually to the payment schedule. This is done through the browse
function. You must enter the date of the payment, the interest
rate and the amount of the payment, all the other data will be
calculated. If you add payments directly from the browse
function without proceeding through the add payment variation
screen, be sure to sort the file to place the payments in order
by date and to recalculate the schedule before printing or
comparing it.
Interest Computation Basis
The basis of interest computation refers to the divisor used
in the interest formula. The formula for computing interest is
very simple:
Interest = Rate x Principal x Time
This is the base formula we all learned in school. It is so
simple it quite often is inadequate to describe real world
situations like partial periods.
To make the computations simpler, the money lenders many
years ago decided to divide the year in to twelve months of
thirty days each. Using this system, the year has only 360
days.
Mortgage Comparison and Reduction 21
The interest for one month becomes:
principal x 1(month)
interest = rate x -------------------------------
12 (months)
This simplifies to:
principal
interest = rate x -----------------------------
12(months)
For periods of an odd number of days the formula becomes:
principal x days
interest = rate x -----------------------
360
The bankers loved it. They charged interest on a daily
basis, every day, one day at a time. This means they modified
the formula to look like this:
Formula for one year's interest (360 basis)
365 days
interest = rate x principal x -----------------
360 days
or
interest = rate x principal x 1.0139
Mortgage Comparison and Reduction 22
This results in an interest amount 1.39% greater than would
be produced by the basic interest formula. This becomes very
significant for lenders with large loan portfolios.
This type calculation is very seldom used for calculating
interest on mortgages, almost never for home mortgages.
Occasionally, when dealing with a flexible lender, partial
payments are made between payment dates. When this is done, we
must have a way to allocate the interest for a partial payment
period.
Loan Master provides both methods. It does not make
judgments. It does not make assumptions. You must tell it which
method to use.
Recalculating A Schedule
When a new schedule is created, the interest and principal
amounts of each payment are calculated and the ending balance and
other data is stored in the file. This data is stored for each
and every payment. A 30 year mortgage will have 361 records in
the file. The first record is not a payment but a record of the
original amount, date. rate, etc.
If you add or change a payment or a payment date, the
interest, principal, and ending balance amounts will change for
each payment after the payment you changed. When you have made
such changes in a schedule file, it becomes necessary to
recalculate the schedule. The recalculate function from the main
menu us used to recalculate the amended schedule.
When you select this menu option, you will be asked for a
file name. You must give the complete name. If the file is
version 3 of a series of mortgages being compared, you must enter
the 3. Example
mortgage3
You will then be asked if you have made any changes or added
any payments since the schedule was recalculated. If you reply
"Y", the schedule will be sorted into order by transaction date
before it is calculated. If you reply "N", the schedule will not
be sorted. This is a critical question. If you have changed the
date order of any payment and do not resort the schedule, the
results will be inaccurate.
Mortgage Comparison and Reduction 23
Printing Reports
All reports are printed from disk files. The disk files
contain amortization schedules which have been previously
generated and which may or may not have been modified by adding
regular of irregular payments.
Printing an Amortization Schedule
To print an amortization schedule you must first create the
schedule by using the menu function to create a schedule.
When a schedule exists on the disk, you can print an
amortization schedule by selecting the amortization schedule
option from the print menu. You will be asked for a filename.
Enter the file name. Be sure the printer is on line and that it
has plenty of paper.
Printing a Mortgage Comparison
A mortgage comparison report lists year end balances of
several mortgages in parallel columns. See the sample report.
The comparative report does not know or care whether the
mortgages are exactly the same, totally different, or variations
of a single mortgage. This report reads from one to five
schedule files and prints the year end balances on the printer.
The files must have names the program can find. the names
must conform to the following convention.
The base file name is seven characters or less, assigned by
you. The program will add a number 1, 2, 3, 4, or 5. to the
seven character name you assign and the file extension is ".DBF"
Thus filenames look lime this:
MORTGAGE1.DBF
MORTGAGE2.DBF
MORTGAGE3.DBF
MORTGAGE4.DBF
MORTGAGE5.DBF
Mortgage Comparison and Reduction 24
The Parameter File
The parameter file stores information the program needs to
know about how you want the program to perform. This is data that
will be different for each user but information you will not want
to reenter each time the system starts.
The parameter file menu offers these options:
1) Change the company Name.
2) Change the mortgage comparison header.
3) Change the amortization schedule header.
4) Change the printer setup.
5) Visual update is ON / OFF
6) Set the path to the data files.
7 Set the five standard variation column headings.
9) Return (to the prior menu)
Customizing the Reports
Changing the Company Name
Prepared by:
Selection 1 from the parameter file manu allows you to enter
of change the company name. This name is printed on both the
amortization schedule and on the mortgage comparison report. The
report will state that it was prepared by the company (or person)
listed in the parameter file.
Changing the Mortgage Comparison Report Header
Mortgage Comparison and Reduction 25
The mortgage comparison report has a two line header. This
is the topmost two lines on the first page of the schedule.
These two lines can contain any text you like.
To change this text, select the option to change the
mortgage comparison header option from the parameter file menu.
You will see a screen that looks like this:
Update the mortgage comparison header
Header line 1 The text of the current header will
Header line 2 appear here in two lines.
You may enter any text you like on these two lines. Do not
worry about centering it, the program will do that for you.
Changing the Amortization Schedule Header
The amortization schedule has a two line header. This is
the topmost two lines on the first page of the schedule. These
two lines can contain any text you like.
To change this text, select the option to change the
Amortization Schedule Header from the parameter file menu.
You will see a screen that looks like this:
Mortgage Comparison and Reduction 26
Update the Amortization Schedule Header
Header line 1 The text of the current header will
Header line 2 appear here in two lines.
You may enter any text you like on these two lines. Do not
worry about centering it, the program will do that for you.
Change the Printer Setup
Option four from the parameter file menu allows you to
specify data about what your printer can and cannot print.
Selection this option, displays a screen that looks like
this:
Maximum printer width (characters 80
IBM compatible control codes T/F T
IBM compatible graphics characters T/F F
You should set this information to correspond to your
printer.
Although most printers will print 132 characters per line
using condensed print, this version of the program does not print
reports wider than 80 characters. The maximum printer width
should be left at 80.
Mortgage Comparison and Reduction 27
Change the Printer Control Codes.
A future version will allow printing reports in condensed
print. The current version does not send any printer control
codes.
Printer Graphics Characters.
The report headers use the ascii character 205 to make
lines to set off special areas of the report. If your printer
does not print these characters, the lines will appear as
repeated strings of letters across the page.
If this setting is set to F, the program will substitute
the equal sign " = " for this purpose.
Visual Update .
This setting is either "on" or "off".
The visual update system informs the user of what the
program is doing at every moment. This system is usually
comforting to beginners and many times obnoxious to experts. Turn
it on or off as you like.
See the tutorial section for a more complete description of
the visual update system.
Path to data files
A path may be set to tell the program where to look for data
files. This feature is used to tell a floppy disk system to look
at drive B: to find the data files. It can also be used to tell a
hard disk system to look in a subdirectory for data files.
To place the data files on disk b:, set the data disk to B.
Leave the data path blank. This will place the data files on the
B drive in the root directory.
When using this option, you must copy the parameter file,
mcparm.dbf to both the program disk and the data disk. If you
Mortgage Comparison and Reduction 28
have the program on disk A: and the data files on disk B: the
file MCPARM.DBF must be copied to both disks.
Setting a path like D:\mc\data will result in files in that
path being found but to create files in that directory, your
program must also be on drive D:.
To create files on drive d: with the program on drive c: set
the data disk to D: and the path to \mc\data. This will create
and find data files located in d:\mc\data.
Loan variation column headings
If you use a standard set of prepayment variations, the
program can remember your column headings so you will not need to
retype them for each report. These are the headings that print
over each of the five column of the comparison report.
If your reports are different each type, you may enter new
and different column headings for each column each time a report
is printed.
Tutorial, How to Use the Program
Comparing Mortgages
Now you are ready to compare mortgages. We will use the
visual update feature so you can see exactly what is happening as
the schedules are built and compared.
First from the main menu, select the option to update the
parameter file. From the parameter file menu, select the option
to turn the visual update system on or off. The menu will tell
you if the option is on or off. If it is off, turn it on. If it
is already on, you can return to the main menu.
From the main menu, select the option to compare mortgages.
You will be asked how many mortgages you want to compare. Tell
it 3. You will next be asked for a file name. You will be
allowed only seven characters for your file name. The mortgage
schedules to be created will be named with the name you select
plus a number. The first schedule will have the number 1 added,
the second will have a 2, and so on.
Mortgage Comparison and Reduction 29
When asked for the name to use for the schedule, reply
"eraseme", without the quotes. The three schedules will be named
eraseme1.dbf, eraseme2.dbf, and eraseme3.dbf.
When the program has determined the name of the schedules,
it will create three blank schedule files on your disk. This
process will take a few seconds.
You will be presented a blank data entry screen to enter
data about a mortgage. The screen will ask for the following
data:
Date of mortgage
Date first payment
Amount of mortgage
Number of payments
Number payments per year
Interest rate per year
Payment amount
Mortgage Comparison and Reduction 30
Enter the following data for your first mortgage:
Date of note : 01/01/89
Date first payment: 02/01/89
Mortgage amount : 100,000.00
Number payments : 36
Payments per year : 12
Initial rate : 12
Interest basis : 1
Payment type : 1
Payment amount : 0.00
Continue...Y/N : N
If payment amount = 0, I will compute it.
Esc = abort PgDn = exit F1 = help
Note that no entry was made for the payment amount. With
the cursor on the blank payment amount space, press the enter
key. This in effect enters zero as the payment amount. Almost
instantly, the number $3,226.72 will appear in the payment amount
space. This is the normal payment necessary to amortize the loan
you entered.
Mortgage Comparison and Reduction 31
The cursor will now appear back at the top of the screen on
the date of the mortgage. If you have made any errors or if you
have changed your mind, you can change any of the data. Use the
up and down arrow keys to move the cursor to the data you want to
change and retype it. It can also be edited. Refer to the
section on data entry and editing for information on editing.
When you are satisfied with the data and the numbers are as
you want them, press the PgDn key on your keyboard.
The computer will begin to construct an amortization table
on the disk. This table will contain each payment necessary to
amortize the loan. While the schedule is being created, the
screen will display the calculations on the screen. The numbers
will change rapidly. This display is not really intended to
inform you of the results. It is intended to keep you informed
about the progress of the procedure.
When the schedule is completed, with no intervention from
the user, the screen will clear and redisplay the mortgage data
entry screen. This time the spaces will already contain data. It
will be the data from the previous mortgage. It is assumed that
the mortgages you are comparing will have some common data. You
may reenter all new data, or simply change the numbers that have
changed.
In this case, change the interest rate to 11.00. To do this,
press the down arrow key until the cursor is on the prior rate of
10%. When the cursor is on the old rate, simply type the new
rate, 11(enter).
Now move the cursor to the payment space and enter 0. This
will cause the program to recalculate the payment.
Before:
Date of mortgage 01/01/89
Date first payment 02/01/89
Amount of mortgage 100,000.00
Number of payments 36
Number payments per year 12
Interest rate per year 10.00
Payment amount 3,226.72
Mortgage Comparison and Reduction 32
After:
Date of mortgage 01/01/89
Date first payment 02/01/89
Amount of mortgage 100,000.00
Number of payments 36
Number payments per year 12
Interest rate per year 11.00
Payment amount .00
After entering the 0 payment amount, the computer will
compute and display the correct payment amount, $3,273.87.
The screen will now look like this:
Date of mortgage 01/01/89
Date first payment 02/01/89
Amount of mortgage 100,000.00
Number of payments 36
Number payments per year 12
Interest rate per year 10.00
Payment amount 3,273.87
The cursor will again be at the top of the screen on the
data of mortgage. Again you may make changes to any data. (If you
change anything that would change the payment amount, remember to
change the payment amount to 0 so the program will recalculate it
for you.)
Since we do not need to make any changes, simply press the
PgDn key again to accept this page of data. The second mortgage
schedule will now be constructed on the disk and again, you may
monitor the progress of the calculations on the screen.
Once again, (the third time, since we requested 3 schedules)
the mortgage data input screen will be displayed. By now, you
should be able to simply change the rate to 12%, change the
payment to 0 and press the PgDn key. The third schedule will now
be constructed on your disk.
Mortgage Comparison and Reduction 33
Your disk now contains three files named eraseme1.dbf,
eraseme2.dbf, and eraseme3.dbf. These files hold the mortgage
amortization schedules you have just requested.
Now that you have three amortization schedules on disk, how
do you compare them? From the main menu, select the printed
reports menu. On the print menu you will see a selection to print
mortgage comparisons. Select that option. You will be asked for
the number of files to compare. Tell it 3. Again you will again
be asked for a file name, Tell it "eraseme". No 1 or 2 or 3. No
"DBF". Just "eraseme".
The program will look for the three files eraseme1.dbf,
eraseme2.dbf and eraseme3.dbf. It will read the files and
construct year end totals and balances for each mortgage and
print them out in parallel columns on the report.
Before printing, be sure the printer is on line and has
paper.
Compare Prepayment Strategies
Comparing prepayment strategies is different from comparing
mortgages. When you compare mortgages, you specify each mortgage
completely. When comparing prepayment strategies, you specify
one base mortgage and several additional prepayment strategies.
We will use the visual update feature so you can see exactly
what is happening as the schedules are built and compared.
First from the main menu, select the option to update the
parameter file. From the parameter file menu, select the option
to turn the visual update system on or off. The menu will tell
you if the option is on or off. If it is off, turn it on. If it
is already on, you can just return to the main menu.
From the main menu, select the option to compare prepayment
strategies. You will be asked how many mortgages you want to
compare. Remember that the base mortgage counts as one. Tell it
3. This will allow one base mortgage and two prepayment
strategies.
You will next be asked for a file name. You will be allowed
only seven characters for your file name. The mortgage schedules
Mortgage Comparison and Reduction 34
to be created will be named with the name you select plus a
number. The first schedule will have the number 1 added, the
second will have a 2, and so on.
When asked for the name to use for the schedule, reply
"eraseme", without the quotes. The three schedules will be named
eraseme1.dbf, eraseme2.dbf, and eraseme3.dbf.
When the program has determined the name of the schedules,
it will create three blank schedule files on your disk. This
process will take a few seconds.
You will be presented a blank data entry screen to enter
data about a mortgage. The screen will ask for the following
data:
Date of mortgage
Date first payment
Amount of mortgage
Number of payments
Number payments per year
Interest rate per year
Payment amount
Enter the following data for your first mortgage:
Date of mortgage 01/01/89
Date first payment 02/01/89
Amount of mortgage 100,000.00
Number of payments 36
Number payments per year 12
Interest rate per year 10.00
Payment amount
Note that no entry was made for the payment amount. With
the cursor on the blank payment amount space, press the enter
key. This in effect enters zero as the payment amount. Almost
instantly, the number $3,226.72 will appear in the payment amount
space. This is the normal payment necessary to amortize the loan
you entered.
Mortgage Comparison and Reduction 35
The cursor will now appear back at the top of the screen on
the date of the mortgage. If you have made any errors or if you
have changed your mind, you can change any of the data. Use the
up and down arrow keys to move the cursor to the data you want to
change and retype it. It can also be edited. Refer to the
section on data entry and editing for information on editing.
When you are satisfied with the data and the numbers are as
you want them, press the PgDn key on your keyboard.
The computer will now begin to construct an amortization
table on the disk. This table will contain each payment
necessary to amortize the loan. While the schedule is being
created, the screen will display the calculations on the screen.
The numbers will change rapidly. This display is not really
intended to inform you of the results. It is intended to keep
you informed about the progress of the procedure.
When the schedule is finished, the program will produce two
copies, one named eraseme2.dbf. The other named eraseme3.dbf.
These schedules are exactly like the original. We will then add a
schedule of prepayments to each of them.
When the schedules are completed, with no intervention from
the user, the screen will clear and display the mortgage
variation data entry screen.
The Prepayment Variation Screen looks like this:
Enter prepayment variation
Date first payment 01/01/89
Number payments
No pmts per year
Payment amount
The date fist payment space will contain the date of the
first payment of the original mortgage. If your prepayment
variation calls for a monthly prepayment, you may start it on the
first month or at any other month. Your prepayment variation may
Mortgage Comparison and Reduction 36
be monthly, quarterly, semiannually or annual. It may start at
any date after the date of the mortgage.
For our lesson, we will use a variation of $100.00 per month
starting on the date of the original first payment.
The cursor is on the date of first payment. Since that is
the date we want, we do not need to change it. Press the down
arrow to move the cursor to the number of payments space. Since
this is a monthly variation, enter 36 payments, the same as the
original mortgage. It will not take that many to pay it off but
since we don't know how many are needed we must be sure to
specify enough. The program will discard unneeded payments after
the balance reaches zero.
The cursor should now be in the payments per year space, if
not use the up or down arrow keys to move it there. Since this
is a monthly payment variation, the number of payments per year
is 12. Since the space already contains 12, we simply move on to
the next item by pressing the enter key of the down arrow key.
The next item requests the prepayment amount. Enter $100.00.
The screen should now look like this:
Enter prepayment variation
Date first payment 01/01/89
Number payments 36
No pmts per year 12
Payment amount 100.00
If not, change it to match the above.
When the final entry is made, the screen will display the
Add Table visual display which will show you the payments as they
are added to the file. The numbers will change to rapidly for
you to read them but you will know that something is happening.
When all the payments have been added, the browse screen
will be displayed. In this case we will use this opportunity to
add a single payment to the schedule. The cursor will be at the
bottom of the screen on the last payment in the file. If you use
Mortgage Comparison and Reduction 37
the up and down arrow or the PgUp and PgDn keys, you can display
the entire schedule on the screen. If you do this, you will
notice that the payments are not in date order and the interest
and balances have not been calculated for the added payments.
Don't worry. (See the section of the browse function for more
details about how it works.).
If you moved the cursor from the last payment, press
Ctrl+PgDn to return to the bottom of the schedule. The cursor is
now on the last payment in the file. Press the Down arrow key. A
new blank payment will appear at the bottom of the screen. The
payment number will be zero and the indicator at the top right of
the screen will state the payment is "new".
The cursor is on the payment number. Press the right arrow
key. The highlight will move to the date space but the cursor
will not be displayed. NOTE that the highlight and the cursor are
not the same thing. The cursor is the small blinking underline
"_". You can enter or change data only where the cursor is
visible.
With the highlight on the date space, press the return key.
The cursor will appear in the date space and you can now enter
the payment date. Enter 07-15-90.
Press the right arrow key again to move the highlight to the
rate space. Again the cursor is not visible. Press return to
display the cursor. You may now enter the rate. Enter .12. Note
that unlike the data entry screens, on this screen the rate must
be entered as a decimal. 12% must be entered as 0.12.
Press the right arrow key again to move the cursor to the
payment amount space. Again you must press the enter key to
display the cursor, then enter the payment amount, $1000.00. (Do
not enter the $)
This looks complete, but it is not. There are two more
things the program must know for each payment. These two items
tells it how to compute the interest on the payment.
Use the right arrow key to move the highlight to the space
labeled mint_basis. Press return to display the cursor and enter
a 4. Since this space is only one character in width, you do not
need to press the return or enter key to enter the 4. Now move
the highlight to the space labeled mpmt_type and enter a 1.
Mortgage Comparison and Reduction 38
The payment is now fully specified. Press the Esc key to
exit the browse screen.
The payment schedule will now be sorted into order by date
and then recalculated. The visual update system will keep you
informed about what is happening. When the schedule is sorted
into order by date, it will be recalculated and any extra
payments after the balance reaches zero will be discarded.
If you watch the recalculate screen closely, you will see
that the last payment is payment number 70. It may or may not be
a full payment. (It may be for less that the amount specified but
will be for the amount necessary to bring the balance to 0.)
Now that the first prepayment variation is fully specified,
calculated, and stored in a disk file, you will be asked to
specify the second prepayment variation.
Our second variation will be 1000.00 per quarter, with the
first prepayment due on April 1, 1989.
Change the variation table to look like this:
Enter prepayment variation
Date first payment 04/01/89
Number payments 12
No pmts per year 4
Payment amount 1000.00
Where did the numbers come from?
The original mortgage was for thee years. Three years of
quarterly payments is 12 payments.
There are four quarters in a year so the number of payments
per year is 4.
The first payment would be due one quarter, three months
after the date of the mortgage or April first.
Mortgage Comparison and Reduction 39
When the screen is completed, press the page down key. The
add table display will be displayed, followed by the sort
message. When the browse screen appears, you may browse if you
like. When you are ready to continue, press the Esc key to exit
the browse function. The schedule will now be sorted and
recalculated.
We now have three files named eraseme1.dbf, eraseme2.dbf and
eraseme3.dbf. The first file contains the original (base),
mortgage. The other files contain the prepayment variations in
the order we entered them.
Now you will use the browse function to see the results.
Select the browse function from the main menu. When asked for the
filename, reply "eraseme1" without the quotes.
The browse function will display the original mortgage.
This time, the highlight is placed on payment number 0. This
is not really a payment, but a record of the amount of the
mortgage and the original payment terms.
Press Ctrl+PgDn to go to the last payment. Use the right
arrow key to move the highlight to the transaction date and write
it down. Continue to use the right arrow key until you have
highlighted the space called mint_acuml. This is the total
interest paid during the entire life of the loan. Write it down.
Repeat the procedure for "eraseme2" and "eraseme3". Compare
the date of the final payment. Which variation paid off first?
Compare the cumulative interest figures, which loan was least
expensive? Which loan was most expensive?
Schedule File Specifications
The amortization schedule files produced by the program all
have the same structure. A list of field names along with their
data types is reproduced here. This file is a Dbase compatible
file and can be read or modified with Dbase III.
Mortgage Comparison and Reduction 40
Date of last update : 08/03/89
Field Field Data Field Dec Description
No Name Type Width
1 MTRAN_NO Numeric 3 Transaction number
2 MTRAN_DATE Date 8 Transaction due date
3 MACCR_RATE Numeric 7 4 Accrual interest
rate
4 MPMT_AMT Numeric 12 2 Scheduled payment
amount
5 MINT_BASIS Numeric 1 Interest basis(1)
6 MPMT_TYPE Numeric 1 Payment Type(2)
7 MACCR_DAYS Numeric 4 Days since last
payment
8 MINT_DUE Numeric 12 4 Interest Due
9 MINT_PAID Numeric 12 2 Interest paid
10 MINT_UNPD Numeric 12 4 Interest unpaid
(after)
11 MINT_ACUML Numeric 12 2 Total interest paid
12 MPRIN_DUE Numeric 12 2 Principal Due,
unpaid
13 MPRIN_PAID Numeric 12 2 Principal paid
14 PRINPREPD Numeric 12 2 Principal prepaid(*)
15 MPRIN_UNPD Numeric 12 2 Principal past
due(*)
16 MPRIN_ADV Numeric 12 2 Principal
increase(*)
17 MBEG_BAL Numeric 12 2 Balance before
payment
18 MEND_BAL Numeric 12 2 Balance after
payment
19 MFORCE_INT Logical 1 Force this interest
amount (*)
20 MFORCE_PRN Logical 1 Force this principal
amount(*)
21 MDATE_PAID Date 8 Date actually
4paid(*)
** Total ** 179
(*) indicates fields not currently in use by this version of the
system. They will be activated in future releases as time permits
and in priority of user requests.
Mortgage Comparison and Reduction 41
Detailed Field Descriptions
MTRAN_NO Numeric 3 Transaction number
The transaction number. Each file has a transaction number
zero which is not a payment but represents the original
status of the loan. It stores the original loan amount,
payment amount, interest rate, dates of mortgage and first
payment, payment frequency and types, and any other
information necessary to specify the terms of the original
mortgage.
MTRAN_DATE Date 8 Transaction due date
The transaction date. This is the scheduled data of each
transaction. When a real mortgage is paid, the actual
payment may or may not be made on this date.
MACCR_RATE Numeric 7 4 Accrual interest rate
This is the interest rate, the accrual rate at which the
interest will be computed for this payment. This rate will
be applied to the balance due since the date of the prior
payment. To change the interest rate between payments, it is
necessary to add a transaction on the date the rate is to
change. The added transaction will have the new rate but the
payment amount will be zero.
MPMT_AMT Numeric 12 2 Scheduled payment amount
The scheduled payment amount. This amount will usually be
the same from payment to payment but it is not required to
be. It will be applied to the interest and principal
according to the rule set by the field named MPMT_type.
MINT_BASIS Numeric 1 Interest basis(1)
The interest basis refers to the method of counting the
number of days when computing interest.
Interest computation basis 360/365 days divisor
Mortgage Comparison and Reduction 42
1 360/360 Normal periodic amortization
(Always computes one period's interest)
2 365/360 Actual day amortization with 360 divisor
3 365/365 Actual day amortization with 365 divisor
4 Same as 1 but computes 0 interest for partial period
MPMT_TYPE Numeric 1 Payment Type(2)
The payment type determines how the payment amount is
allocated to interest and principal.
1 Normal amortization interest plus principal. Take the
interest first then apply what ever is left to the
principal.
2* Constant principal reduction + all accrued int. Apply
the full payment amount specified to the principal and
collect enough additional payment to cover all interest
due.
7* Rule of 78ths, Sum of years digits. Split the payment
by taking the accrual factor for this month and
multiplying it by the total finance charge. The result
is the interest due this month.
MACCR_DAYS Numeric 4 Days since last payment
Days since the date of last payment. If interest basis is 2
or 3, this is the actual number of days for which interest
will be computed. If the basis is 1 or 4, this field is
ignored.
Mortgage Comparison and Reduction 43
MINT_DUE Numeric 12 4 Interest Due
The interest amount due as of the date of this payment.
MINT_PAID Numeric 12 2 Interest paid
The interest amount actually paid from this payment.
MINT_UNPD Numeric 12 4 Interest unpaid (after)
The interest remaining due but unpaid after the payment due
today was paid. This amount is normally zero but may be
greater than zero if the payment amount is not large enough
to pay all the interest due.
MINT_ACUML Numeric 12 2 Total interest paid
Accumulated interest paid since the mortgage began. This is
the total of all the interest amounts paid from the first
payment to the current payment. At the date of the final
payment, when the balance reaches zero, this field will
contain the total interest cost for the entire life of the
mortgage.
MPRIN_DUE Numeric 12 2 Principal Due, unpaid
Principal Due as of the date of the payment. This is the
amount of principal which should be paid with the current
payment.
MPRIN_PAID Numeric 12 2 Principal paid
Principal paid with this payment. This is the amount of
principal actually deducted from the balance with this
payment.
Mortgage Comparison and Reduction 44
PRINPREPD Numeric 12 2 Principal prepaid(*)
Principal prepaid. This is the amount of principal that has
been deducted from the balance before it was due. This
amount is not calculated for prepayment variations because
the program does not know which payments were originally
scheduled and which were added later.
MPRIN_UNPD Numeric 12 2 Principal past due(*)
When a payment is not sufficient to pay the entire amount of
principal due, this field will contain the principal amount
remaining unpaid.
MPRIN_ADV Numeric 12 2 Principal increase
Principal advance. Increase in amount of principal. This
field is used in payment number zero to record the original
amount of the principal.
MBEG_BAL Numeric 12 2 Balance before payment
This is the balance due before this payment is paid. It is
always the same as the ending balance from the previous
payment.
MEND_BAL Numeric 12 2 Balance after payment
This is the principal balance remaining unpaid after the
current payment has been paid.
MFORCE_INT Logical 1 Force this interest amount (*)
In some cases, an interest payment is scheduled which has no
relationship to the actual interest accrued to the date of
the payment. One example would be prepaid interest.
When this field is set to T, (true), the amount specified in
the interest payment field will be applied to interest
regardless of the amount due. The amount prepaid or if the
Mortgage Comparison and Reduction 45
case may be, unpaid will be carried forward to future
payments.
MFORCE_PRN Logical 1 Force this principal amount(*)
In some cases, a principal payment is scheduled which has no
relationship to the actual interest accrued to the date of
the payment. In other words a payment is scheduled in which
the entire amount will be applied to principal and the
interest due will just be ignored.
When this field is set to T, (true), the amount specified in
the principal payment field will be deducted from the
balance regardless of the amount of interest or principal
due. The amount prepaid or if the case may be, unpaid will
be carried forward to future payments.
MDATE_PAID Date 8 Date actually paid(*)
Date this payment was actually paid. In real life, most
payments are paid on a date close to but not actually on the
exact due date. This field allows the user to maintain a
schedule which shows both the due data and the date paid.
Use the browse function to record this date.
Mortgage Comparison and Reduction 46
Index
amortization schedule . . . . . . . . . . 3, 4, 15, 17, 24-27, 40
browse . . . . . . . . . . . . . . . 3, 12-14, 16, 21, 37-40, 46
cursor control . . . . . . . . . . . . . . . . . . 3, 9, 10, 13
Data entry . . . . . . . . . . . . . 3, 8-10, 30, 32, 35, 36, 38
Editing data
Browse screen . . . . . . . . . . . . . . . . . . . . . 13
field descriptions . . . . . . . . . . . . . . . . . . . . 4, 42
file specifications . . . . . . . . . . . . . . . . . . 4, 12, 40
Files required . . . . . . . . . . . . . . . . . . . . . . . . 4
help . . . . . . . . . . . . . . . . . . . . . . . . 3, 5, 6, 31
How to use the program . . . . . . . . . . . . . . . . . . 4, 29
installation . . . . . . . . . . . . . . . . . . . . . . . 3, 4
Interest formula . . . . . . . . . . . . . . . . . . . . . . 22
license agreement . . . . . . . . . . . . . . . . . . . . . 1, 3
MACCR_DAYS . . . . . . . . . . . . . . . . . . . . . 12, 41, 43
MACCR_RATE . . . . . . . . . . . . . . . . . . . . . 12, 41, 42
main menu . . . . . . . . . . . . . . . 3, 7, 15, 23, 29, 34, 40
MBEG_BAL . . . . . . . . . . . . . . . . . . . . . . . . 41, 45
MDATE_PAID . . . . . . . . . . . . . . . . . . . . . . . 41, 46
MEND_BAL . . . . . . . . . . . . . . . . . . . . . . . . 41, 45
Menu operations . . . . . . . . . . . . . . . . . . . . . . . . 6
MFORCE_INT . . . . . . . . . . . . . . . . . . . . . . . 41, 45
MFORCE_PRN . . . . . . . . . . . . . . . . . . . . . . . 41, 46
MINT_ACUML . . . . . . . . . . . . . . . . . . . . . 40, 41, 44
MINT_BASIS . . . . . . . . . . . . . . . . . . . . . 38, 41, 42
MINT_DUE . . . . . . . . . . . . . . . . . . . . . . 12, 41, 44
MINT_PAID . . . . . . . . . . . . . . . . . . . . . . . . 41, 44
MINT_UNPD . . . . . . . . . . . . . . . . . . . . . . . . 41, 44
mortgage comparison . . . . . . . . . . . . . . . . 4, 17, 24-26
MPMT_AMT . . . . . . . . . . . . . . . . . . . . . . 12, 41, 42
MPMT_TYPE . . . . . . . . . . . . . . . . . . . . . . . 38, 41-43
MPRIN_ADV . . . . . . . . . . . . . . . . . . . . . . . . 41, 45
MPRIN_DUE . . . . . . . . . . . . . . . . . . . . . . . . 41, 44
MPRIN_PAID . . . . . . . . . . . . . . . . . . . . . . . 41, 44
MPRIN_UNPD . . . . . . . . . . . . . . . . . . . . . . . 41, 45
MTRAN_DATE . . . . . . . . . . . . . . . . . . . . . 12, 41, 42
MTRAN_NO . . . . . . . . . . . . . . . . . . . . . . 12, 41, 42
prepayment . . . . . . . 3, 4, 19-21, 29, 34, 36, 37, 39, 40, 45
PRINPREPD . . . . . . . . . . . . . . . . . . . . . . . . 41, 45
printing reports . . . . . . . . . . . . . . . . . . . 3, 24, 28
recalculate . . . . . . . . . . . . . . 3, 16, 21, 23, 32, 33, 39
reports menu . . . . . . . . . . . . . . . . . . . . . 3, 17, 34
strategy . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Mortgage Comparison and Reduction 47
subdirectories . . . . . . . . . . . . . . . . . . . . . . 3, 4
Tutorial . . . . . . . . . . . . . . . . . . . . . . . 4, 28, 29
variations . . . . . . . . . . 3, 5, 15, 16, 20, 24, 29, 40, 45
Mortgage Comparison and Reduction 48
