Manual

26 — M

ORTGAGE

UALIFIER

LUS

Finding the Interest Rate

Find the interest rate on a mortgage where the loan amount is

$98,500, term is 30 years, and the payment is $1,150 a month.

STEPS KEYSTROKES DISPLAY

Clear calculator o o 0.00

Enter loan amount 9 8 5 0 0 l 98,500.00

Enter term 3 0 T 30.00

Enter monthly payment 1 1 5 0 p 1,150.00

Find annual interest ˆ “run” 13.78

Find periodic interest ˆ 1.15

Finding the Loan Amount

Approximately how much could you borrow if the interest rate was

7.8% on a 30-year loan and you could afford $1,500 in monthly pay-

ments? What if the interest rate was lowered to 7.5%?

STEPS KEYSTROKES DISPLAY

Clear calculator o o 0.00

Enter interest 7 • 8 ˆ 7.80

Enter term 3 0 T 30.00

Enter monthly payment 1 5 0 0 p 1,500.00

Find loan amount l “run” 208,370.81

Enter new interest rate 7 • 5 ˆ 7.50

Find new loan amount l “run” 214,526.44

Finding the Loan Amount (with Interest-Only Payment)

Find the loan amount for an Interest-Only Loan at 7.5% interest and

an Interest-Only Payment of $1,875 a month?

STEPS KEYSTROKES DISPLAY

Clear calculator o o 0.00

Enter I/O payment 1 8 7 5 s V 1,875.00

Enter interest 7 • 5 ˆ 7.50

Find loan amount l 300,000.00