Re: Amortization Schedules are often INACCURATE

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Posted by Michael Morrongiello on April 26, 2006 at 23:03:51:

In Reply to: Ammortization Schedule posted by Brad on April 25, 2006 at 21:19:07:

Brad:
An amortization repayment schedule is wonderful when you have pretty much "plain vanilla" type promissory Notes that have fixed variables (the interest rate, payment amount, term, etc.) - however ANY amortization schedule is making the assumption that all payments that are due are being made exactly on the date they are due to be paid per the Note instrument. Thus the reflective balance of principal that is being amortized down over time is often a "flawed" balance because most borrowers do not make their installment payments each and every month on the EXACTLY the same due date.

With regard to your question; if the amortization schedule does not accuratly reflect the repayment terms of the Note instrument it sounds like is was incorrectly prepared. This is a common occurence. Try to take the repayment terms of the Note and using a wonderful software program like Tvalue (version 5) you should be able to correctly lay down the repayment terms of the Note instrument in an amortization schedule format.

Hope this helps...

Best to your success,
Michael Morrongiello

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