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Amortization: Actual/360


4.0 ( 3520 ratings )
Economia Finanza
Sviluppatore Brandon Morris
Libero

Have you ever wondered why the payments on a commercial mortgage are usually higher than what you expected, or different than what you calculated on your financial calculator?

Residential mortgages are almost exclusively calculated in the U.S. using the 30/360 method, but if you use that method for a commercial mortgage, you could be underestimating the loan payments. Many commercial lenders are using the Actual/360 method. The lenders method of calculation (Day Count Convention) is disclosed in the lending documents.

This app will calculate both, but keep in mind that the Actual/360 method used here is averaged to account for leap years, so it is only an estimate. Your actual mortgage payments will vary slightly depending on what time of year you get the loan, and how many leap years there are during the amortization period.