26 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 26 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
Enter TVM values;
compute and enter
loan amount.
30
0
9.25
1
75
q
X
10
A
j
2
TRM=
30.00
I% =
9.25
7,500.00
LN = 67,500.00
Compute payment
and round the result.*
$
3
#
n
3
PMT=
-
555.31
PMT=
-
555.31
Enter number of
payments made in 15
years.
15
O
12
j
#
*
180.00
N =
180.00
Compute unpaid
balance.
$
4
FV =
-
53,953.92
Add monthly payment
to find total balloon
payment.
a
]
3
j
-
54,509.23
Note:
The balloon payment includes both the unpaid
balance and the final monthly payment. You could, of
course, estimate the balloon payment simply by
calculating the unpaid balance. The only difference
between the two results is the amount of the final monthly
payment.
* The calculator performs its internal computations to 13
digits. The balloon payment should be computed using the
actual amount paid in dollars and cents. Pressing
#
n
rounds the internal value to the displayed
value.
Calculating a Balloon Payment
You are buying a $75,000 lake house. With a 10% down
payment, the interest rate will be 9.25% amortized over a
30-year period. However, the loan will be due and
payable at the end of 15 years. How much will the balloon
payment be at the end of 15 years?
Solution
