54 — Q
UALIFIER
P
LUS
®
III
FX
Decreasing ARM Payment
Calculate the initial monthly P&I payment on a 30-year, $250,000
ARM loan at 5% interest, and then find the second and third years'
adjusted payments if the loan's interest rate decreases 1% at the
end of each year.
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter Loan Amount
2 5 0 ) l
250,000.00
Enter Term in years
3 0 T
30.00
Enter annual Interest rate
5 ˆ
5.00
Find initial monthly P&I
Payment
p
“run” 1,342.05
Enter ARM parameters
1 : 1 s A
-1.00 - 1.00
Find 1st lower ARM
payment*
A
1 ARM 1,197.01
Find 2nd lower ARM
payment*
A
2 ARM 1,064.20
*For second and third year payments.
Increasing and Decreasing ARM Payment
Find the ARM payments for a $300,000, 30-year ARM loan that
starts out at 5% but increases 1% after six months and then
decreases 1.5% after an additional 12 months.
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter Loan Amount
3 0 0 ) l
300,000.00
Enter Term in years
3 0 T
30.00
Enter annual Interest rate
5 ˆ
5.00
Find initial monthly P&I
Payment
p
“run” 1,610.46
Enter 1st ARM adjustment
1 : • 5 A
1.00 - 0.50
Find higher ARM payment
A
“run” 1 ARM 1,796.41
Enter 2nd ARM adjustment
1 • 5 : 1 s A
-1.50 - 1.00
Find lower ARM payment
A
“run” 1 ARM 1,527.15
