Author Topic: ytm vs. remaining payments  (Read 1565 times)

mikedev10

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ytm vs. remaining payments
« on: January 11, 2019, 03:43:00 PM »
sorry for all the peppering of questions in here guys but i'm new so i have plenty.  :)

do you take a loan just looking at absolute ytm or do you try to attempt some annualized rate calculation to decide if you want it?  ie. 10% with 6 months remaining is great, 10% with 59 months remaining is not so great.  i assume ytm / months_remaining is maybe a little too simple and naive a way to calculate something, nonetheless it would factor in those months better - is this advised?

for now i'm doing something more like the ytm can't drift too much from the original rate, ie. a 12% loan i'm looking for a 10% ytm.  maybe that is simpler and easier and does enough of the same thing?