70 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
P
X2
Pick-A-Payment Loan (3-Month/30-Term) vs. Standard
Fixed-Rate Loan —
Finding P-A-P Savings for the First
Three Years (Versus the First Five Years)
You’d like to show your client the savings of a 3-month/30-term P-A-P
loan over that of a fixed-rate loan. Find the savings and amortize for
the first three years only. Also, find the P-A-P payments for years
1-3.
Note: Change the existing ROI% and Payment Cap%.
FIXED-RATE LOAN P-A-P LOAN
Loan Amount
300,000
300,000
Interest/Start Rate 7.00%
2.95%
(Start %)
5%
(Note%)
Term
30
3
(Start No. of Mo.’s)
30 years
ROI%
--
6.5%
Pmt Cap %
--
7%
STEPS
KEYSTROKES
DISPLAY
1.
Enter Fixed-Rate Loan Values:
Clear All
s x
“All Cleared” 0.00
Enter loan amount
3 0 0 ) l
300,000.00
Enter interest rate
7 ˆ
7.00
Enter term
3 0 T
30.00
2.
Solve for Fixed-Rate Loan Payment and Total Cost:
Find monthly P&I payment
p
1,995.91
Amortize the loan
1 : 3 a
1-36
Find total interest
a
62,033.56
Find total principal
a
9,819.11
Find total principal/interest
a
71,852.67
Find remaining balance
a
290,180.89
Find remaining term
a
27.00
3.
Enter P-A-P Loan Values:
Enter Start Rate
2 • 9 5 S
2.95
Enter P-A-P actual rate
(Note%)
5 s S
5.00
Enter Start Rate term
(in months)
3 ß
3.00
Enter P-A-P term
(in years)
3 0 s ß
30.00
Enter ROI%
6 • 5 s %
6.50
Enter Payment Cap%
7 s 6
7.00
(Cont’d)
