mortgage-buddy 0.1.0

checksums.yaml

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data/.gitignore

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+/.bundle/
+/.yardoc
+/Gemfile.lock
+/_yardoc/
+/coverage/
+/doc/
+/pkg/
+/spec/reports/
+/tmp/

data/.rspec

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+--format documentation
+--color

data/.ruby-version

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+2.2.3

data/.travis.yml

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+language: ruby
+rvm:
+  - 2.2.3
+before_install: gem install bundler -v 1.10.6

data/CODE_OF_CONDUCT.md

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+# Contributor Code of Conduct
+
+As contributors and maintainers of this project, we pledge to respect all people who contribute through reporting issues, posting feature requests, updating documentation, submitting pull requests or patches, and other activities.
+
+We are committed to making participation in this project a harassment-free experience for everyone, regardless of level of experience, gender, gender identity and expression, sexual orientation, disability, personal appearance, body size, race, ethnicity, age, or religion.
+
+Examples of unacceptable behavior by participants include the use of sexual language or imagery, derogatory comments or personal attacks, trolling, public or private harassment, insults, or other unprofessional conduct.
+
+Project maintainers have the right and responsibility to remove, edit, or reject comments, commits, code, wiki edits, issues, and other contributions that are not aligned to this Code of Conduct. Project maintainers who do not follow the Code of Conduct may be removed from the project team.
+
+Instances of abusive, harassing, or otherwise unacceptable behavior may be reported by opening an issue or contacting one or more of the project maintainers.
+
+This Code of Conduct is adapted from the [Contributor Covenant](http://contributor-covenant.org), version 1.0.0, available at [http://contributor-covenant.org/version/1/0/0/](http://contributor-covenant.org/version/1/0/0/)

data/Gemfile

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+source 'https://rubygems.org'
+
+# Specify your gem's dependencies in mortgage-buddy.gemspec
+gemspec

data/LICENSE.txt

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+The MIT License (MIT)
+
+Copyright (c) 2015 Perry Hertler
+
+Permission is hereby granted, free of charge, to any person obtaining a copy
+of this software and associated documentation files (the "Software"), to deal
+in the Software without restriction, including without limitation the rights
+to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the Software is
+furnished to do so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in
+all copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN
+THE SOFTWARE.

data/README.md

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+https://travis-ci.org/perryqh/mortgage-buddy.svg?branch=master
+
+# MortgageBuddy
+[![Gem Version](https://badge.fury.io/rb/g5_updatable.svg)](http://badge.fury.io/rb/g5_updatable)
+[![Build Status](https://travis-ci.org/perryqh/mortgage-buddy.svg?branch=master)](https://travis-ci.org/perryqh/mortgage-buddy)
+
+This gem will calculate APR and Amoratization.
+
+The Amoratization class can really help you if you're trying to decide on refinancing.
+
+
+
+## Installation
+
+Add this line to your application's Gemfile:
+
+```ruby
+gem 'mortgage-buddy'
+```
+
+And then execute:
+
+    $ bundle
+
+Or install it yourself as:
+
+    $ gem install mortgage-buddy
+
+## Usage
+```ruby
+mortgage_cost = MortgageBuddy::MortgageCost.new(loan_amount:   550000,
+                                                interest_rate: 3.0,
+                                                period:        360,
+                                                fees:          600,
+                                                points:        0)
+puts mortgage_cost.apr # 3.01% (rounded)
+puts mortgage_cost.monthly_payment_with_fees # $2321.35 (rounded)
+
+amoratizer = MortgageBuddy::Amoratizer.new(interest_rate: mortgage_cost.apr,
+                                           loan_amount:   550000,
+                                           period:        360)
+
+puts amoratizer.total_num_payments # 360 or 30 years (no extra payment)
+puts amoratizer.total_interest # $285,684.09 (disturbing)
+puts amoratizer.payments # an array of openstructs with every payment amount, interest, principal, etc
+
+# Now let's see what happens when we pay extra
+
+amoratizer_with_extra = MortgageBuddy::Amoratizer.new(interest_rate:         mortgage_cost.apr,
+                                                      loan_amount:           550000,
+                                                      period:                360,
+                                                      extra_monthly_payment: 1000)
+
+puts amoratizer_with_extra.total_num_payments # 215 or just under 18 years
+puts amoratizer_with_extra.total_interest # $161532.46
+puts amoratizer.total_interest - amoratizer_with_extra.total_interest # a savings of $124,151.63
+
+
+```
+
+## Development
+
+After checking out the repo, run `bin/setup` to install dependencies. Then, run `rake spec` to run the tests. You can also run `bin/console` for an interactive prompt that will allow you to experiment.
+
+To install this gem onto your local machine, run `bundle exec rake install`. To release a new version, update the version number in `version.rb`, and then run `bundle exec rake release`, which will create a git tag for the version, push git commits and tags, and push the `.gem` file to [rubygems.org](https://rubygems.org).
+
+## Contributing
+
+Bug reports and pull requests are welcome on GitHub at https://github.com/[USERNAME]/mortgage-buddy. This project is intended to be a safe, welcoming space for collaboration, and contributors are expected to adhere to the [Contributor Covenant](contributor-covenant.org) code of conduct.
+
+
+## License
+
+The gem is available as open source under the terms of the [MIT License](http://opensource.org/licenses/MIT).
+

data/Rakefile

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+require 'bundler/gem_tasks'
+require 'rspec/core/rake_task'
+require 'cucumber/rake/task'
+
+RSpec::Core::RakeTask.new(:spec)
+Cucumber::Rake::Task.new(:features)
+
+task default: [:spec, :features]
+

data/bin/console

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+#!/usr/bin/env ruby
+
+require "bundler/setup"
+require "mortgage/buddy"
+
+# You can add fixtures and/or initialization code here to make experimenting
+# with your gem easier. You can also use a different console, if you like.
+
+# (If you use this, don't forget to add pry to your Gemfile!)
+# require "pry"
+# Pry.start
+
+require "irb"
+IRB.start

data/bin/setup

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+#!/bin/bash
+set -euo pipefail
+IFS=$'\n\t'
+
+bundle install
+
+# Do any other automated setup that you need to do here

data/lib/mortgage_buddy.rb

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+require 'ostruct'
+require 'active_support/core_ext/object/blank'
+require 'mortgage_buddy/version'
+require 'mortgage_buddy/safe_num'
+require 'mortgage_buddy/monthly'
+require 'mortgage_buddy/apr_calculator'
+require 'mortgage_buddy/mortgage_cost'
+require 'mortgage_buddy/payment_plan'
+require 'mortgage_buddy/amoratizer'
+
+module MortgageBuddy
+end

data/lib/mortgage_buddy/amoratizer.rb

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+module MortgageBuddy
+  class Amoratizer
+    include SafeNum, Monthly
+    attr_reader :interest_rate, :loan_amount, :period
+    attr_reader :extra_monthly_payment # optional
+
+    # == Parameters
+    # [:loan_amount]  Loan amount. Price of home minus down payment
+    # [:interest_rate] The actual interest rate of the loan
+    # [:period] Number of months of the loan. 30 yr is 360. 15 yr is 189
+    # [:extra_monthly_payment] This is the extra monthly principal payment. Optional and defaults to 0
+    def initialize(params={})
+      @interest_rate         = safe_float params[:interest_rate]
+      @loan_amount           = safe_float params[:loan_amount]
+      @period                = safe_int params[:period]
+      @extra_monthly_payment = safe_float(params.fetch(:extra_monthly_payment, 0))
+    end
+
+    def total_interest
+      payments.inject(0){|sum,pay| sum + pay.interest }.round(2)
+    end
+
+    # A = [i * P * (1 + i)^n] / [(1 + i)^n - 1]
+    # A = minimum_monthly_payment
+    # P = loan amount
+    # i = monthly interest rate
+    # n = period (number of payments)
+    def minimum_monthly_payment
+      @minimum_monthly_payment ||= calculate_minimum_monthly_payment
+    end
+
+    def actual_monthly_payment
+      minimum_monthly_payment + @extra_monthly_payment
+    end
+
+    def total_num_payments
+      payments.length
+    end
+
+    def payments
+      @payments ||= MortgageBuddy::PaymentPlan.build(loan_amount:           self.loan_amount,
+                                                     monthly_payment:       actual_monthly_payment,
+                                                     monthly_interest_rate: monthly_interest_rate)
+    end
+
+    private
+    def calculate_minimum_monthly_payment
+      period_rate = (1 + monthly_interest_rate)**(self.period)
+      numerator   = monthly_interest_rate * self.loan_amount * period_rate
+      denominator = period_rate - 1
+      (numerator / denominator).round(2)
+    end
+  end
+end

data/lib/mortgage_buddy/apr_calculator.rb

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+module MortgageBuddy
+  class AprCalculator
+    attr_accessor :loan_amount, :monthly_payment_with_fees, :period, :monthly_interest_rate
+
+    def initialize(attributes={})
+      attributes.each do |name, value|
+        send("#{name}=", value)
+      end
+    end
+
+    # solves APR
+    # [a (1 + a)^N] / [(1 + a)^N - 1] - P/C = 0
+    # where a = APR/1200, N = period, P = monthly payment, C = loan_amount
+    # calculate APR uses the Newton-Raphson to find the root (the value for 'a' that makes f(a) = 0)
+    def apr
+      payment_ratio = self.monthly_payment_with_fees / self.loan_amount
+      f             = lambda { |k| (k**(self.period + 1) - (k**self.period * (payment_ratio + 1)) + payment_ratio) }
+      f_deriv       = lambda { |k| ((self.period + 1) * k**self.period) - (self.period * (payment_ratio + 1) * k**(self.period - 1)) }
+
+      root = newton_raphson(f, f_deriv, self.monthly_interest_rate + 1)
+      100 * 12 * (root - 1).to_f
+    end
+
+    # if 'start' is the monthly_interest_rate, Newton Raphson will find the apr root very quickly
+    # k1 = k0 - f(k0)/f'(k0)
+    # k_plus_one = k - f(k)/f_deriv(k)
+    # We find the k-intercept of the tangent line at point k_plus_one and compare k to k_plus_one.
+    # This is repeated until a sufficiently accurate value is reached, which can be specified with the 'precision' parameter
+    def newton_raphson(f, f_deriv, start, precision = 5)
+      k_plus_one = start
+      k          = 0.0
+
+      while ((k - 1) * 10**precision).to_f.floor != ((k_plus_one - 1) * 10**precision).to_f.floor
+        k          = k_plus_one
+        k_plus_one = k - f.call(k) / f_deriv.call(k)
+      end
+      k_plus_one
+    end
+  end
+end

data/lib/mortgage_buddy/monthly.rb

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+module MortgageBuddy
+  module Monthly
+    def monthly_interest_rate
+      @interest_rate / 12 / 100
+    end
+  end
+end

data/lib/mortgage_buddy/mortgage_cost.rb

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+module MortgageBuddy
+  class MortgageCost
+    include MortgageBuddy::SafeNum, MortgageBuddy::Monthly
+    attr_reader :loan_amount, :interest_rate, :period, :fees, :points
+    DEFAULT_PERIOD = 360
+    DEFAULT_FEES   = 0
+    DEFAULT_POINTS = 0
+
+    # == Parameters
+    # [:loan_amount]  Loan amount. Price of home minus down payment
+    # [:interest_rate] The interest rate of the loan
+    # [:period] Number of months of the loan. 30 yr is 360. 15 yr is 189
+    # [:fees] Closing cost fees. Optional and defaults to 0
+    # [:points] Points. Optional and defaults to 0
+    def initialize(params={})
+      raise '[:loan_amount] required' if params[:loan_amount].blank?
+      raise '[:interest_rate] required' if params[:interest_rate].blank?
+      @loan_amount   = safe_float params[:loan_amount]
+      @interest_rate = safe_float params[:interest_rate]
+      @period        = safe_int params.fetch(:period, DEFAULT_PERIOD)
+      @fees          = safe_int params.fetch(:fees, DEFAULT_FEES)
+      @points        = safe_float params.fetch(:points, DEFAULT_POINTS)
+    end
+
+    def apr
+      @apr ||= MortgageBuddy::AprCalculator.new(loan_amount:               @loan_amount,
+                                                monthly_payment_with_fees: monthly_payment_with_fees,
+                                                period:                    period,
+                                                monthly_interest_rate:     monthly_interest_rate).apr
+    end
+
+    def monthly_payment
+      @monthly_payment ||= calculate_monthly_payment(@loan_amount, monthly_interest_rate, @period)
+    end
+
+    def monthly_payment_with_fees
+      @monthly_payment_with_fees ||= calculate_monthly_payment(@loan_amount + total_fees, monthly_interest_rate, @period)
+    end
+
+    def total_fees(negative_allowed = false)
+      #fees may not be negative (borrower is not paid)
+      total_fees = calculate_total_fees
+      !negative_allowed && total_fees < 0 ? 0 : total_fees
+    end
+
+    private
+    def calculate_monthly_payment(amount, monthly_rate, period)
+      amount * (monthly_rate/(1 - (1 + monthly_rate)**(-period)))
+    end
+
+    def calculate_total_fees
+      @fees + (@loan_amount * points/100)
+    end
+  end
+end

data/lib/mortgage_buddy/payment_plan.rb

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+module MortgageBuddy
+  class PaymentPlan
+    class << self
+      def build(params)
+        new(params).payments
+      end
+    end
+
+    def initialize(params)
+      @loan_amount           = params[:loan_amount]
+      @monthly_payment       = params[:monthly_payment]
+      @monthly_interest_rate = params[:monthly_interest_rate]
+      @remaining_loan_amount = @loan_amount
+    end
+
+    def payments
+      @payments ||= build_payments
+    end
+
+    def build_payments
+      payments       = []
+      payment_number = 1
+      while @remaining_loan_amount > 0
+        interest = next_payment_interest
+        principal = next_payment_principal(interest)
+        if principal >= @remaining_loan_amount
+          difference             = principal - @remaining_loan_amount
+          principal              = @remaining_loan_amount.round(2)
+          payment                = (@monthly_payment - difference).round(2)
+          @remaining_loan_amount = 0
+        else
+          @remaining_loan_amount -= principal
+          payment                = @monthly_payment
+        end
+        payments << OpenStruct.new(payment:   payment,
+                                   interest:  interest,
+                                   principal: principal,
+                                   number:    payment_number,
+                                   balance:   @remaining_loan_amount.round(2))
+        payment_number += 1
+      end
+      payments
+    end
+
+    def next_payment_principal(interest)
+      (@monthly_payment - interest).round(2)
+    end
+
+    def next_payment_interest
+      (@monthly_interest_rate * @remaining_loan_amount * 100).floor.to_f / 100
+    end
+  end
+end

data/lib/mortgage_buddy/safe_num.rb

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+module MortgageBuddy
+  module SafeNum
+    def safe_float(the_float)
+      Float(the_float.to_s)
+    end
+
+    def safe_int(the_int)
+      Integer(the_int.to_s)
+    end
+  end
+end

data/lib/mortgage_buddy/version.rb

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+module MortgageBuddy
+  VERSION = '0.1.0'
+end

data/mortgage-buddy.gemspec

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+# coding: utf-8
+lib = File.expand_path('../lib', __FILE__)
+$LOAD_PATH.unshift(lib) unless $LOAD_PATH.include?(lib)
+require 'mortgage_buddy/version'
+
+Gem::Specification.new do |spec|
+  spec.name        = "mortgage-buddy"
+  spec.version     = MortgageBuddy::VERSION
+  spec.authors     = ["Perry Hertler"]
+  spec.email       = ["perry@hertler.org"]
+  spec.homepage    = "https://github.com/perryqh/mortgage-buddy"
+  spec.summary     = %q{Some mortgage calculation helpers}
+  spec.description = %q{Some mortgage calculation helpers}
+  spec.license     = "MIT"
+  spec.files         = `git ls-files -z`.split("\x0").reject { |f| f.match(%r{^(test|spec|features)/}) }
+  spec.bindir        = "exe"
+  spec.executables   = spec.files.grep(%r{^exe/}) { |f| File.basename(f) }
+  spec.require_paths = ["lib"]
+
+  spec.add_development_dependency "bundler", "~> 1.10"
+  spec.add_development_dependency "rake", "~> 10.0"
+  spec.add_development_dependency "rspec"
+  spec.add_development_dependency "rspec-its"
+  spec.add_development_dependency "cucumber"
+  spec.add_development_dependency "pry"
+  spec.add_dependency "activesupport"
+end

metadata

@@ -0,0 +1,162 @@
+--- !ruby/object:Gem::Specification
+name: mortgage-buddy
+version: !ruby/object:Gem::Version
+  version: 0.1.0
+platform: ruby
+authors:
+- Perry Hertler
+autorequire: 
+bindir: exe
+cert_chain: []
+date: 2015-10-20 00:00:00.000000000 Z
+dependencies:
+- !ruby/object:Gem::Dependency
+  name: bundler
+  requirement: !ruby/object:Gem::Requirement
+    requirements:
+    - - "~>"
+      - !ruby/object:Gem::Version
+        version: '1.10'
+  type: :development
+  prerelease: false
+  version_requirements: !ruby/object:Gem::Requirement
+    requirements:
+    - - "~>"
+      - !ruby/object:Gem::Version
+        version: '1.10'
+- !ruby/object:Gem::Dependency
+  name: rake
+  requirement: !ruby/object:Gem::Requirement
+    requirements:
+    - - "~>"
+      - !ruby/object:Gem::Version
+        version: '10.0'
+  type: :development
+  prerelease: false
+  version_requirements: !ruby/object:Gem::Requirement
+    requirements:
+    - - "~>"
+      - !ruby/object:Gem::Version
+        version: '10.0'
+- !ruby/object:Gem::Dependency
+  name: rspec
+  requirement: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+  type: :development
+  prerelease: false
+  version_requirements: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+- !ruby/object:Gem::Dependency
+  name: rspec-its
+  requirement: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+  type: :development
+  prerelease: false
+  version_requirements: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+- !ruby/object:Gem::Dependency
+  name: cucumber
+  requirement: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+  type: :development
+  prerelease: false
+  version_requirements: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+- !ruby/object:Gem::Dependency
+  name: pry
+  requirement: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+  type: :development
+  prerelease: false
+  version_requirements: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+- !ruby/object:Gem::Dependency
+  name: activesupport
+  requirement: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+  type: :runtime
+  prerelease: false
+  version_requirements: !ruby/object:Gem::Requirement
+    requirements:
+    - - ">="
+      - !ruby/object:Gem::Version
+        version: '0'
+description: Some mortgage calculation helpers
+email:
+- perry@hertler.org
+executables: []
+extensions: []
+extra_rdoc_files: []
+files:
+- ".gitignore"
+- ".rspec"
+- ".ruby-version"
+- ".travis.yml"
+- CODE_OF_CONDUCT.md
+- Gemfile
+- LICENSE.txt
+- README.md
+- Rakefile
+- bin/console
+- bin/setup
+- lib/mortgage_buddy.rb
+- lib/mortgage_buddy/amoratizer.rb
+- lib/mortgage_buddy/apr_calculator.rb
+- lib/mortgage_buddy/monthly.rb
+- lib/mortgage_buddy/mortgage_cost.rb
+- lib/mortgage_buddy/payment_plan.rb
+- lib/mortgage_buddy/safe_num.rb
+- lib/mortgage_buddy/version.rb
+- mortgage-buddy.gemspec
+homepage: https://github.com/perryqh/mortgage-buddy
+licenses:
+- MIT
+metadata: {}
+post_install_message: 
+rdoc_options: []
+require_paths:
+- lib
+required_ruby_version: !ruby/object:Gem::Requirement
+  requirements:
+  - - ">="
+    - !ruby/object:Gem::Version
+      version: '0'
+required_rubygems_version: !ruby/object:Gem::Requirement
+  requirements:
+  - - ">="
+    - !ruby/object:Gem::Version
+      version: '0'
+requirements: []
+rubyforge_project: 
+rubygems_version: 2.4.5.1
+signing_key: 
+specification_version: 4
+summary: Some mortgage calculation helpers
+test_files: []