Comments on: Net Present Value: Why You Should Use it in Everyday Life

By: horace Derrick

horace Derrick — Sun, 02 Oct 2011 21:10:24 +0000

I appreciated the article regarding portfolio hedging using SPY. How do I get the spreadsheet that the author offered?

Thanks

By: Michelle C

Michelle C — Mon, 29 Aug 2011 16:56:37 +0000

@mark finney, Mark - That's exactly what I'm trying to do right now. Compare my current mortgage with 24 years left on it with a re-fi on another 30 year loan. How best can I adapt this spreadsheet to do that? Put a negative "savings" in years 26-30 for 12*monthly payment?

By: mark finney

mark finney — Sat, 23 Jul 2011 00:23:32 +0000

A great idea, and a great tool!
A suggestion: I noticed that the formula took into account only 10 years (column L). This may work fine if all annual cash flows are the same, and for the same number of years. But if, for example, you have 24 years left on your current 30 year mortgage, and you are comparing it to potential 30, 20, and 15 year options with differing rates and fees, and payment amounts, you really should carry the calcs out to full term. Other than that – GREAT TOOL!

By: symond

symond — Sat, 28 Aug 2010 03:13:41 +0000

College loans if consolidated provide you with great benefits as they are the most flexible and consumer friendly loans. If you know the ideal way of how to consolidate your loan then you could derive benefits such as improving your credit rating and lowering debt to income ratio. There are various ways through which you could do this, however we will highlight five ways through which you could save money by refinancing student loans.

By: Top 135+ Personal Finance Posts for 2009 (That can be used 2010 and beyond)

Top 135+ Personal Finance Posts for 2009 (That can be used 2010 and beyond) — Mon, 28 Dec 2009 10:38:41 +0000

[...] Net Present Value Explained – You don’t need to work in Finance in order to realize the benefit in utilized NPV calculations in everyday life. Utilization ranges from picking between various refi options to whether you should invest in an improvement to your home. NPV analysis will tell you if it’s worth it! [...]

By: Welcome to our 6th National Dog Blog Carnival! | WayCoolDogs.com

Welcome to our 6th National Dog Blog Carnival! | WayCoolDogs.com — Thu, 03 Sep 2009 21:02:17 +0000

[...] costs that you feel I’ve omitted and I can adjust from there….Next, I’ll calculate a Net Present Value (NPV) model for our dog in particular Ã¢â‚¬â€œ actually, a Net Present Cost (NPC), but same concept with [...]

By: Christian

Christian — Fri, 12 Jun 2009 14:54:39 +0000

I appreciated your article as a consumer. As a mortgage broker, it’s often difficult to explain to borrowers the differences they see on various good faith estimates/rate comparison websites/etc, and this would help me elucidate the options I can offer.
If you’re willing to email it over, I’ll definitely give you credit when I use it. I direct my clients to various personal finance and mortgage blogs, because in the end they trust that I’ll give them all the information they need to make an informed decision. Trust breeds trust, and that’s how I earn business and referrals.

Thanks!

Christian

By: 40 Year Mortgage Loan, Rate, Calculator and Evaluation - Plus 50 and 60 Year Too | Darwin's Finance

Thu, 28 May 2009 04:58:49 +0000

[...] paying out of pocket across a day, a year, or 40 years. It’s all about NPV (see this NPV explanation and model with respect to determining your optimal mortgage to [...]

By: Selling Call Options Against Employee Stock Options Grants | Darwin's Finance

Tue, 12 May 2009 04:09:36 +0000

[...] You may also enjoy these articles on Exploiting Volatile Stock Earnings with Options or Net Present Value in Everyday Life. [...]

By: 6 Prudent Uses for your Tax Refund This Year | Darwin's Finance

6 Prudent Uses for your Tax Refund This Year | Darwin's Finance — Fri, 17 Apr 2009 04:43:03 +0000

[...] fixed mortgage (and this includes the fees and expenses required up front!). When in doubt, use a Net Present Value model to see which mortgage option yields the highest NPV when confronted with multiple [...]