An easy program to compare installments and uncover the “actual rates” of the mortgages supplied on the market
The simple excel sheet downloadable at the end of this page will return the periodical rate to be paid and the “actual rate” charged for any given mortgage, and further compare up to 6 different loans in a way to highlight the most convenient.
The final result of the elaboration is thus the most convenient mortgage, the one with the lower “actual rate”, which represents the real cost of the loan, because it considers both initial expenses and the periodical compounding of interests.
The information needed are few and easy to find:
a) the amount of the loan/mortgage;
b) the name of the bank;
c) the expected repayment period (in years);
d) the number of installments in a year (12, 6, 4, …)
e) the annual nominal rate, hence the rate publicized for that mortgage
f) the initial expenses
The final document can then be easily printed to gain a better visual layout.
This is the excel sheet