Manual

U SER ’ S G UIDE — 47
Mortgage Interest Tax Savings — 21% or 30% Tax Bracket
What is the mortgage interest tax savings for the first year (if loan
starts in January*) on a $310,000, 30-year loan at 7.25% interest?
Base it on 21% tax bracket (default). Then, recalculate based on a
30% tax bracket.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter the loan amount 3 1 0 ) l 310,000.00
Enter interest 7 • 2 5 ˆ 7.25
Enter term 3 0 T 30.00
Find monthly payment p “run” 2,114.75
Enter Yr. 1 1 a “run” 1-12
Find total interest in Yr. 1 a 22,376.60
Find total principal in Yr. 1 a 3,000.36
Find prin./interest in Yr. 1 a 25,376.96
Find remaining balance a 306,999.64
Find remaining term a 29.00
Find mortgage interest tax
savings in Yr. 1 based
on 21% tax bracket a 4,699.09
(etc.—keep pressing a if you want to automatically find next
year’s amortization values and mortgage interest tax savings.)
Enter 30% tax bracket 3 0 s p 30.00
Enter Yr. 1 1 a “run” 1-12
Find total interest in Yr. 1 a 22,376.60
Find total principal in Yr. 1 a 3,000.36
Find prin./interest in Yr. 1 a 25,376.96
Find remaining balance a 306,999.64
Find remaining term a 29.00
Find mortgage interest
tax savings in Yr. 1 a 6,712.98
Return calculator to 21%
tax bracket 2 1 s p 21.00
*Note: If loan does not start in January, use the Month Offset feature (e.g., if loan
starts in July, enter 7 s ) and begin problem).