| not the APR (annualized percentage rate). m - The number of periods in the time frame of I. I is usually based on a year but it could be based on any amount of time. i - home equity 2nd mortgage loan interest rate for the compounding period which is needed for the calculation. For example, a real property mortgage is usually based on a monthly period. In this case i=I/12 where I is based on the normal yearly period. In general i=I/m. Also I needs to be a decimal not home equity 2nd mortgage loan percent thus it also needs to be divided by 100. n - The total number of periods or payments. Things like mortgages usually cover multiple home equity 2nd mortgage loan B - The balance, for example, the balance remaining on the mortgage at any point in time. Mortgage lending is a major category of the business of finance in the United States of America. Mortgages | ![]() |
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