User Manual

22 Mortgages and Amortization
BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM
Page 22 of 36
Press
# ,
until the BGN indicator disappears.
Steps Keystrokes Display
Clear TVM values.
#
-
0.00
Set P/Y and C/Y to 12.
#
+
12
j
j
P/Y = 12.00
C/Y = 12.00
12.00
Calculate original
mortgage payment.
25
0
8.5
1
250
q
2
$
3
TRM= 25.00
I% = 8.50
LN = 250,000.00
PMT=
-
2,013.07
Enter the number of
payments made in 15
years.
15
O
12
j
#
*
180.00
N = 180.00
Calculate unpaid
balance.
$
4
FV =
-
162,362.91
Note: You also can use the Amortization model to
calculate unpaid balance. The answer may be slightly
different, due to rounding differences between the two
methods.
Finding the Unpaid Balance on a Mortgage
Consider a mortgage loan of $250,000 that is to terminate
in 25 years. At 8.5% annual interest rate, what will the
unpaid balance be in 15 years?
Solution