Calculated Industries 3420 User Guide - Manual (Page 60)

U SER ’ S G UIDE — 59
Finding Sales Price and Payment Based on Loan Amount and
Down Payment
Find a home’s sales price if you've been approved for a $200,000,
30-year, 7.5% mortgage and you plan to put 20% down. Also find
your monthly payment.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Loan Amount 2 0 0 ) l 200,000.00
Enter Term in years 3 0 T 30.00
Enter annual Interest rate 7 • 5 ˆ 7.50
Enter Down Payment % 2 0 d 20.00
Find sales Price P 250,000.00
Find monthly P&I Payment p “run” 1,398.43
Adjustable Rate Mortgages
Using the A key, you can quickly find the “adjusted” (increasing or
decreasing) payments for future years on fully and partially amor-
tized Adjustable Rate Mortgages. Here are some notes on Solving
ARM loans using this calculator:
1. You solve the initial ARM payment just as you would for any
standard, fixed-rate loan — the ARM function is only used for
“adjusted” periods.
2. The “split: Interest : Term Adjustment entry for ARMs should be
entered on an annual basis (although you can also enter a 6-
month adjustment term as .5). This value is permanently stored
in memory.
3. After performing an ARM calculation, your permanently stored
values for Term and Interest will be changed, since performing
an ARM alters these values.
4. To calculate a “decreasing ARM,” enter the two ARM parame-
ters, but press the s key before pressing A .
5. The calculator includes a “lifetime cap” (i.e., the maximum
amount the interest rate may increase over the life of a loan).
Prior to setting your ARM parameters, key in the maximum life-
time interest increase followed by
s % . This permanently
sets the lifetime cap. To restore the cap to “0” enter 0 s % .
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