Calculated Industries 3442 - Manual (Page 16)

U
SER
’
S
G
UIDE
— 11
s ß Pick-A-Payment Term — Enters the P-A-P/EB P-A-P
term that is independent of the Standard T entry
for fixed-rate loans.
s 6 Annual Payment Cap % (Pmt Cap%) — Stores the
annual percent cap for the P-A-P/EB P-A-P annual
payment adjustment, which is applied for the select-
ed Recast period.
(Default: 7.5%)
When the Recast period is achieved, then the com-
parison between the new payment (made for each
year) and the Cap Payment is no longer applied.
s % Return on Investment (ROI%) — Stores and dis-
plays the Return on Investment (ROI) percentage
used to compute the five-year (or less than 5-year, if
specified) investment savings for P-A-P/EB P-A-P
loans over fixed-rate loans.
(Default: 10%)
∏ Pick-A-Payment — This type of mortgage starts out
with a low, below-market interest rate, or initial pay-
ment, as defined by
S , during a short period (e.g.,
0, 1, 3, 6, 9, 12 or 36 months) of full amortization at
the initial low rate, as defined by
ß . After the Start
Period, the payments are applied to interest only
(deferred interest) at the Note % and begin to
increase, restricted by the specified Annual Payment
Cap%, until the Recast Term (e.g., 5, 10 years) is
reached. After the Recast Period, the loan is recal-
culated based on the remaining balance, Note%,
and remaining P-A-P term and the payment stays
fixed for the remainder of the term (e.g., if recast
period is 10, at the end of 10 yrs, it is recast based
on Note% and remaining P-A-P Term).
Note: With the Zero-month P-A-P, the interest starts compounding
at the full Note rate immediately (there is no waiting period).
However, the initial payment is still extremely low.
(Cont’d)