P
OCKET
R
EFERENCE
G
UIDE
— 29
APR and Total Finance Charges,
Including Mortgage Insurance
• Loan: $250,000
• Term: 30 years
• Interest: 7%
• Cost: 1.5 $550
• Mortgage insurance (MI): $1,200/year
STEPS
KEYSTROKES
DISPLAY
Clear
o o
0.00
Enter loan
2 5 0 ) l
250,000.00
Enter term
3 0 T
30.00
Enter interest
7 ˆ
7.00
Find payment
p
1,663.26
Enter MI
1 2 0 0 s I
1,200.00
Find Loan Costs:
Recall loan
® l
250,000.00
Find points
x 1 • 5 % =
3,750.00
Add fees and
find total
+ 5 5 0 =
4,300.00
Find APR
s ˆ
7.77
Find total
charges
ˆ
389,072.25
Amt. financed
ˆ
245,700.00
Total cost
ˆ
634,772.25
P&I payment
ˆ
1,663.26
Monthly MI
ˆ
100.00
PIMI payment
ˆ
1,763.26
3405PRG-E-B 1/9/04 8:45 AM Page 29
