76 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
P
X2
Pick-A-Payment (3-Month/30-Term) Combo Loan vs.
Fixed-Rate Loan w/MI
You’d like to show your client the savings of a P-A-P Combo Loan
over that of a fixed-rate loan with MI. Find the P-A-P Combo (1st
TD/2nd TD) loan amounts, payments and total cost, if you have the
following parameters:
FIXED-RATE
P-A-P COMBO
LOAN w/MI
(1st TD – 2nd TD)
Loan Amount
90,000
90,000
Interest
8.50%
1st: 4.95% – 8.00%
2nd: 11.50%
Term
30
1st: 3 mo – 30 yr
2nd: 30 yr
MI
0.62%
--
LTV
95%
80% –
15%
STEPS
KEYSTROKES
DISPLAY
1.
Enter Fixed-Rate Loan Values:
Clear calculator
o o
0.00
Enter loan amount
9 0 ) l
90,000.00
Enter interest
8 • 5 ˆ
8.50
Enter term
3 0 T
30.00
Enter MI value
• 6 2 s 9
0.62
2.
Solve for Fixed-Rate Loan Payment and Total Cost:
Solve for P&I payment
p
692.02
Solve for PITI payment
(incl. MI)
p
738.52
Amortize the loan
a
1-360
Find total interest
a
159,127.97*
Find total principal
a
90,000.00
Find total principal/interest
a
249,127.97
3.
Enter P-A-P Combo Loan Values:
Enter 1st TD-P-A-P
Start Rate
4 • 9 5 S
4.95
Enter P-A-P actual rate
8 s S
8.00
Enter P-A-P Start Rate
term (in months)
3 ß
3.00
Enter P-A-P term
(in years)
3 0 s ß
30.00
Enter 2nd TD Interest:Term
1 1 • 5 : 3 0 s !
11.50-30.00
Enter 1st:2nd LTV values
8 0 : 1 5 s d
80.00-15.00
(Cont’d)
