              Mortgage Amortization Spreadsheet Templates
                             Instructions

                                       (c) Beta Management Consultants


A.   Table of Contents

     A.   Table of Contents
     B.   Contents of this Package
     C.   Description of the Templates
          1.   Introduction
          2.   Templates with Amortization Tables
          3.   Templates without Amortization Tables
     D.   Registration and Contacting Us


B.   Contents of this Package

There are six (6) spreadsheet templates in this package:

     CMTG1WKN.WKS - Weekly Payment, No Amortization Table
     CMTG1WKT.WKS - Weekly Payment, with Amortization Table
     CMTG2WKN.WKS - Bi-Weekly Payment, No Amortization Table
     CMTG2WKT.WKS - Bi-Weekly Payment, with Amortization Table
     CMTGMONN.WKS - Monthly Payment, No Amortization Table
     CMTGMONT.WKS - Monthly Payment, with Amortization Table

There is this documentation file, DOCUMENT.TXT and a registration form,
REGISTER.FRM

These spreadsheet templates have been stored in WKS format.  This format
is readable by most spreadsheet software, including most old software
from the mid-1980's.  This assures that the templates can be used on a
wide variety of systems.


C.   Description of the Templates

1.   Introduction

In Canada, the common payment frequencies for mortgages are monthly,
weekly and bi-weekly.  Weekly and bi-weekly are based on the monthly
payment, with the weekly payment being 1/4 of the monthly payment and
the bi-weekly being 1/2.  Thus, the weekly and bi-weekly mortgages are
accelerated payment schemes as the borrower is making the equivalent of
one extra monthly payment each year, which reduces the effective
amortization period to between 65 and 75 percent of the amortization
period which would have been with a monthly-pay mortgage.  This package
contains two templates for each type of payment, one with an
amortization table, and one smaller template without the amortization
table.


2.   Templates with Amortization Tables

The monthly payment template includes 300 lines of amortization table,
allowing for 25 years of monthly payments.  (You should never amortize
a mortgage over a period longer than that.)  The weekly payment and bi-
weekly payment templates include 260 lines of amortization, five years
for the weekly version, and 10 years for the bi-weekly version. 
Amortization lines can be added or deleted as necessary.  In Lotus 1-2-3
(tm), you add lines using the /c (copy) command.  Lines are deleted
using the /wdr (Worksheet Delete Rows) command.

To illustrate, an extract of the Weekly Payment spreadsheet follows.

Standard Mortgage Amortization Schedule Worksheet for Weekly Payments
            (c) Beta Management Consultants     Release:   1.00

Input       Initial Principal ....................... =     $100,000
 Data       Annual, nominal interest rate ........... =         9.00%
            Nominal Amortization Period (years) ..... =           25
            Initial Date ............................ =    01-Jul-95

Computed    Effective Annual Rate (to 2 decimals) ... =         9.20%
    Data    Periodic Interest Factor (Monthly)....... =    0.0073631
            Periodic Interest Factor (Weekly)........ =    0.0016897
            Months to Nominal Amortization .......... =          300
            Periodic Payment, Monthly ............... =    827.97738
            Weekly Payment .......................... =    206.99434
                     Rounded to nearest cent ........ =       206.99
=====================================================================

                                                   Extra
       Time  Payment  Factor  Interest Principal Payments   Balance

  01-Jul-95                                                100000.00
  08-Jul-95   206.99 0.001689   168.97    38.02       0.00  99961.98
  15-Jul-95   206.99 0.001689   168.91    38.08       0.00  99923.90
  22-Jul-95   206.99 0.001689   168.85    38.14       0.00  99885.76
  29-Jul-95   206.99 0.001689   168.78    38.21       0.00  99847.55
  05-Aug-95   206.99 0.001689   168.72    38.27       0.00  99809.28
     .
     .
     .

You will note that only four pieces of input information are required:
(1)  the principal;  (2)  the nominal interest rate;  (3) the (nominal)
amortization period;  and (4) the starting date.  The principal is
entered without the dollar sign or commas, although a decimal would be
necessary if the amount borrowed included cents.  The nominal or quoted
interest rate is entered in decimal form -- 9.25% is entered as .0925 --
and the spreadsheet displays it in percent format.  The starting date is
a formula in the form
@date(YY,MM,DD), which is converted into the DD-MMM-YY format shown. 
All Canadian mortgages have the interest compounded semi-annually, so
this is hard-coded into the spreadsheet.
As already mentioned, weekly and bi-weekly payment mortgages are based
on the corresponding monthly mortgage.  Therefore, the payment is
computed on the assumption of a monthly payment mortgage, and the
payment halved or quartered.  The interest per payment is calculated on
the basis of a week being 7/365ths of a year.  Over most 25 year
periods, a more accurate fraction would be 7/365.25, however, this level
of accuracy is in the borrower's, and not the lender's, favour and our
experience is that the 7/365 fraction is what is used in practice.  If
you find that your lender is using the more accurate fraction, you can
edit the formula that computes the weekly (or bi-weekly) interest
factor.  If you press the {EDIT} key -- in Lotus 1-2-3 (tm) this is {F2}
-- you will see the fraction (7/365) in brackets as the power.  use your
cursor keys and insert the fractional value.

As there are a wide variety of printers being used, we have not pre-
defined any print ranges.


3.   Templates without Amortization Tables

The three template without the amortization tables are included to allow
the mortgage borrower or lender to perform quick comparative
calculations.  These spreadsheets are quite small, they recalculate very
quickly, even on older slower machines, and they have two columns for
two mortgage scenarios to be displayed side-by-side.  If you need more
columns, you can simply add columns using the copy command.  An example
follows:

Standard Mortgage Worksheet for Weekly Payments, No Amortization Table
         (c) Beta Management Consultants           Release:  1.00

Input    Initial Principal ..................... =  $100,000  $100,000
 Data    Annual, nominal interest rate ......... =      9.00%     9.00%
         Nominal Amortization Period (years) ... =        25        20

Computed Effective Annual Rate (to 2 decimals) . =      9.20%     9.20%
    Data Periodic Interest Factor (Monthly)..... = 0.0073631 0.0073631
         Periodic Interest Factor (Weekly)...... = 0.0016897 0.0016897
         Months to Nominal Amortization ........ =       300       240
         Periodic Payment, Monthly ............. = 827.97738 889.18949
         Weekly Payment ........................ = 206.99434 222.29737
                  Rounded to nearest cent ...... =    206.99    222.30


The input required is essentially the same, with the starting date
dropped since that is only used in the amortization table.  Here we can
see that the difference between a 25 and 20 year nominal amortization is
only $15.31 per week.  The 25 year nominal amortization would be about
17 to 18 years with weekly payments and about 14 years for the 20 year
nominal amortization.


D.   Registration and Contacting Us

This software is shareware, meaning you may use it for the purposes of
evaluating it, but if you intend to use it, you are asked to register
and pay for it.  The cost is only $20, plus $1.40 GST.  Residents of
Ontario must include $1.60 PST as well.  The registration form is
included and is called REGISTER.FRM

To contact us, write:

Beta Management Consultants
51 Blue Spruce Lane
Thornhill, Ontario
L3T 3W8

Internet: ak200032@sol.yorku.ca