48 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
Bi-Weekly Term Reduction and Payment
Find the monthly P&I payment on a 30-year, $275,000 mortgage at
5.88% annual interest. Then convert it to a Bi-Weekly and find out
how many years it will take to pay off this loan, the total interest sav-
ings, the total interest and principal paid (as a comparison to the
regular loan), and the Bi-Weekly payment.
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter loan amount
2 7 5 ) l
275,000.00
Enter term in years
3 0 T
30.00
Enter annual interest
5 • 8 8 ˆ
5.88
Find monthly P&I payment
p
“run” 1,627.61
Display amortization period
a
1-360
Find total interest paid
a
310,938.79
Re-display total principal
a
275,000.00
Find total interest/principal
paid
a
585,938.79
Now Solve for the Bi-Weekly Loan and Compare Interest Savings
and Total Interest/Principal Paid:
Find Bi-Weekly term
s T
“run” 24.60
Find total interest savings
T
65,430.46*
Find total interest paid
T
245,508.33
Find total principal
T
275,000.00
Find total principal and
interest
T
520,508.33
Find Bi-Weekly P&I payment
p
813.80
Clear calculator**
o o
0.00
*Notice you save a significant amount (over $65K in this example) with a bi-weekly.
**Note: Return to monthly payment mode by pressing
o
twice.
Trust Deeds and Discounted Notes
Your calculator easily handles trust deed purchase price and yield
problems. Two things to remember are: (1) when entering or solving
for “yield” or “rate of return,” use the
ˆ
key, and (2) when entering or
solving for “purchase price” or “present value,” use the
l
key.
