[iPhone God App] It was found using the Amortization Calculator actually

This is quite simply the most accurate amortization calculator available for iOS.

The Amortization app quickly and correctly calculates both Canadian and American loan payments. Given an amount, interest rate and amortization period, it presents monthly, weekly and biweekly payment plans based upon standard annuity equations. Use it to ensure that your lender is calculating the amount and number of payments correctly.

Not all biweekly calculation programs are accurate. Use this calculator verify that your lender is correctly calculating the amount and number of payments. This will ensure that you are signing on to the biweekly mortgage that maximizes your interest savings.

The Amortization app was created based on algorithms by Ron Cirotto, an internationally-recognized mortgage and loan expert. He has been studying and analyzing mortgages, loans and amortization schedules for over 25 years and presents mortgage seminars on all aspects of Canadian and American mortgage calculations. Ron has appeared as a special guest speaker and radio mortgage commentator on numerous occasions. In addition, he was invited and appeared before the Standing Committee on Finance of the Canadian House of Commons to offer his expertise on mortgages and loans.

His first commercial mortgage software - called Mortgage2 Pro - was released in 1984 to coincide with the launch of the Canadian weekly and biweekly mortgage plans that were made available in Canada. Mortgage2 Pro has literally thousands of satisfied users; it has been licensed to Banks, Real Estate lawyers, Mortgage Brokers, Real Estate Brokers and, of course, home owners and just about anyone borrowing money.



Mortgages 101

Canadian and American mortgages are calculated identically. Both of these mortgages have the interest owing calculated at the end of the month using a monthly interest factor. Every penny in excess of the monthly interest automatically goes towards lowering the principal. The monthly interest factor is derived from the annual interest rate. However, for a given annual interest rate the Canadian monthly interest factor is smaller than the American monthly interest factor due to different regulations. Therefore a Canadian mortgage will always cost you less in total interest and have a lower monthly payment than an American mortgage for the same principal, annual interest rate and amortization period.

A mortgage is just a special name for a loan used to purchase a house. American mortgages and American personal loans are calculated the same way. While Canadian personal loans are calculated in the same way as American personal loans, Canadian mortgages have a lower monthly interest factor due to Canadian regulations thus the Canadian flag selection is for Canadian mortgages only.

Weekly and biweekly payment mortgages are calculated using the same logic as the monthly payment mortgage but use a weekly or biweekly interest factor. The method used to calculate these two interest factors dramatically influences the total interest. Thus it is not enough to just know the biweekly payment, you must also know the number of biweekly payments required to amortize or pay off the mortgage or be given an amortization schedule.

Some American lenders do not follow the above method for biweekly mortgages. They hold the extra payments in escrow and apply it towards the principal at the end of the year. This method does not produce a true biweekly amortization schedule and thus will not save you as much in interest costs. The longer you wait to apply money towards the principal the larger the interest costs.