Mortgage calculator code

Part 5
Canadian mortgage calculator - 2

In the fourth installment of our explanation of this Mortgage calculator code series, we finished by saying that the mortgage formula had 2 parts, the first part was to set the Interest Rate (IntRate)

IntRate = Math.pow((1+AnnualIntRate/2),(2/12)) - 1

and the second part was the basic mortgage formula:

Pa = (PrValue * IntRate) / (1 - Math.pow(1 + IntRate, -Period))

In order to get the correct canadian interest calculations we have to adjust everything to our payment cycle, which implies that we also have to adjust the period to our payment cycle... like this:

IntRate = (Math.pow((1+AnnualIntRate/2),(2/12)) - 1)

Pa = (PrValue * IntRate) / (1 - Math.pow (1 + IntRate, - (Period * PPay)))

If this formula was for monthly mortgage payments, PPay would be 12; for bi-weekly payment, PPay would be 24; and for accelerated bi-weekly payments PPay would be 26.

Thanks to KC Lee, from Ontario, for correcting a the above formula.

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