Manual
70 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
P
X2
Pick-A-Payment Loan (3-Month/30-Term) vs. Standard
Fixed-Rate Loan —
Finding P-A-P Savings for the First
Three Years (Versus the First Five Years)
You’d like to show your client the savings of a 3-month/30-term P-A-P
loan over that of a fixed-rate loan. Find the savings and amortize for
the first three years only. Also, find the P-A-P payments for years
1-3.
Note: Change the existing ROI% and Payment Cap%.
FIXED-RATE LOAN P-A-P LOAN
Loan Amount 300,000 300,000
Interest/Start Rate
7.00% 2.95%
(Start %)
5%
(Note%)
Term 30 3
(Start No. of Mo.’s)
30 years
ROI% -- 6.5%
Pmt Cap % -- 7%
STEPS KEYSTROKES DISPLAY
1.
Enter Fixed-Rate Loan Values:
Clear All s x “All Cleared” 0.00
Enter loan amount 3 0 0 ) l 300,000.00
Enter interest rate 7 ˆ 7.00
Enter term 3 0 T 30.00
2.
Solve for Fixed-Rate Loan Payment and Total Cost:
Find monthly P&I payment
p 1,995.91
Amortize the loan 1 : 3 a 1-36
Find total interest a 62,033.56
Find total principal a 9,819.11
Find total principal/interest
a 71,852.67
Find remaining balance a 290,180.89
Find remaining term a 27.00
3.
Enter P-A-P Loan Values:
Enter Start Rate 2 • 9 5 S 2.95
Enter P-A-P actual rate
(Note%) 5 s S 5.00
Enter Start Rate term
(in months) 3 ß 3.00
Enter P-A-P term
(in years) 3 0 s ß 30.00
Enter ROI% 6 • 5 s % 6.50
Enter Payment Cap% 7 s 6 7.00
(Cont’d)