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Questions and Discussion Relative to Pralana Online's "Build" Features
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Topic starter December 11, 2024 7:50 pm
Expenses > Personal Property > Existing Loans > Loan Amortization
This is my primary residence with one mortgage. In the First Lien section there is one row, I've input the balance, payment, and fixed rate. All other fields are untouched. In the Loan Amortization tab, the Loan Payment amount reduces every year for the life of the loan. This loan doesn't work that way, the payment is the payment. Why does the tool do this? Will it affect modeling in future years by having an inaccurate cash flow?
December 11, 2024 8:49 pm
Because it is in today's $s. Inflation adjusted payments reduce as time passes. If you set it as "Future $" the payments will remain the same.
This post was modified 10 months ago by Cedric Pereira
