Mortgages and Amortization 19
BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM
Page 19 of 36
If you know the sales price of a property and the down
payment percentage, you can easily compute how much
the down payment will be.
For example, suppose a client is buying a house for
$135,000 on an 80% loan. How much will the down
payment be?
Steps
Keystrokes
Display
Calculate the down
payment amount.
135
q
X
80
A
j
27,000.00
You may need to calculate a down payment when the
original sales price of the property is not known. If you
have the loan amount and percentage, you can calculate
the sales price and down payment amount.
Assume that a client borrowed $125,000 on an 85% loan
some years ago. What was the original sales price and
down payment amount?
Steps
Keystrokes
Display
Divide loan amount
by loan percent to
find sales price.
125
q
B
85
A
j
147,058.82
Calculate the down
payment amount.
O
15
A
j
22,058.82
Calculating Down Payments
Mortgage loans are usually stated as 80% loans, 90%
loans, etc. The down payment percentage is the
difference between the stated percentage and 100%. The
down payment percentage is applied to the sales price of
the property to find the down payment amount.
Calculating a
Down Payment
Amount
Calculating
Down Payment
When Sales
Price is Not
Known
