prime rate and vrm

Ian

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Aug 30, 2007
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#1
Just curious with the REMA software--if I go in and change the prime rate (as the mortgage on the property in question is variable and thus based on prime) does the REMA software calculate the new mortgage payment based on the original principal balance or does it calculate it based on the new current balance (as per mortgage principal pay down)??
thanks.

Ian
 

GarthChapman

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Aug 30, 2007
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Hi Ian,

REMA recalculates the ammortization table amounts. It does not as yet recalculate the mortgage payments. That is something you will have to enter, for now. Sometime soon we intend to have REMA do that for you, but it is a complex process as you will have to enter a bit more info about the mortgage into REMA for it to work automatically.

It is important to know that not all banks will automatically adjust the payment. Most in fact do not change the payment but merely adjust the interest and pricipal components (as REMA does for you). A few do adjus tthe payment, and a few more will do so if you make that request to them.

Hope that helps,
 

Ian

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QUOTE (GarthChapman @ Oct 16 2008, 07:12 PM)
Hi Ian,



REMA recalculates the ammortization table amounts. It does not as yet recalculate the mortgage payments. That is something you will have to enter, for now. Sometime soon we intend to have REMA do that for you, but it is a complex process as you will have to enter a bit more info about the mortgage into REMA for it to work automatically.



It is important to know that not all banks will automatically adjust the payment. Most in fact do not change the payment but merely adjust the interest and pricipal components (as REMA does for you). A few do adjus tthe payment, and a few more will do so if you make that request to them.



Hope that helps,






Thanks Garth!

As always, I appreciate your prompt replies!!



Ian