These are projects posted by the students of Dr. Gove Allen at Brigham Young University. These students have taken one semester-long course on VBA and generally have had no prior programming experience

Wednesday, December 11, 2013

Luke Ray - Mortgage Amortization and Analysis

Executive Summary

I’ve owned my home for almost 8 years now. During that time, I’ve often wondered exactly how much I still owe on my mortgage, and perhaps more importantly, what portion of my payment is going to principle and what portion is going to interest. While we all know that you pay more than the value of your home in interest over the course of a 30-year loan, it’s easy to forget when you get in the groove of living life and paying your bills. I wanted to find a way to bring the pain to the surface by keeping the exact amount I’m paying in interest top-of-mind, and utilize several of the analytical tools and frameworks I’ve learned in the MBA program at the same time. By doing so, I wanted to motivate myself to find a way to contribute extra principle to my loan every month and pay off my house early.  The problem: traditional amortization frameworks, like the one you can find on your mortgage company’s website, only build out a 30-year amortization table and point out how far along the process you are at a given time. I wanted a model that could calculate, based on current payment data alone, exactly where in the amortization schedule I am and deliver the financial implications all in one package.

As a result, I built the VBA project associated with this document. This project logs into Bank of America’s website (a 5-step process involving several possible twists and turns), pulls the relevant payment data into a spreadsheet, and calculates exactly where in the amortization schedule I am, returning relevant (and very motivating!) data in a clean, professional way. This project is built to do the same for anyone with a Bank of America account and is very useful for any of the 6,000,000 Bank of America customers with a mortgage.

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