French Amortization System

Amoritzación systems mortgages determine the way in which the loan money to the bank and more specifically how the payment of monthly fee will be structured will be returned. It may seem trivial choose from a formula or another, but nothing is further from reality.


In the end, the repayment system that will be responsible for paying finish more interest on the loan or the percentage of housing that we face paying interest on the mortgage. That is, you try to make the monthly letter is as stable as possible-in fact, only varies depending on the interest rate when the time comes to review the mortgage.

To achieve a constant installments, the payment of principal and interest over all loan fees is distributed, which in turn causes the first letters almost all share corresponds to interest, whereas in the past almost all payment corresponds to the actual depreciation of housing.

Example Excel: https://1drv.ms/x/s!AnzoVicxXwMnuCGuga515pnADYYm