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Paying Off a Mortgage Early (Making Larger Payments)
How long does it take to pay off a 25-year fixed-rate mortgage of
$150,000 at 7.25% interest if you add an extra $200 to the mortgage
payment each month?
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter Mortgage Amount
1 5 0 ) l
150,000.00
Enter Annual Interest Rate
7 • 2 5 ˆ
7.25
Enter Term in years
2 5 T
25.00
Find monthly P&I Payment
p
“run” 1,073.88
Add add’tl Payment amount
+ 2 0 0 =
1,273.88
Enter as new P&I Payment
p
1,273.88
Find reduced Mortgage Term
T
“run” 16.95
Finding the Interest Rate
Find the interest rate if the mortgage amount is $98,500, term is 25
years and payment is $765 a month.
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter Mortgage Amount
9 8 5 0 0 l
98,500.00
Enter Term
2 5 T
25.00
Enter monthly P&I Payment
7 6 5 p
765.00
Find annual Interest rate
ˆ
*
“run” 8.21
Find periodic Interest rate
ˆ
0.68
*Note: If desired, press
s +
, and press
ˆ
, and repeat to toggle between
Canadian Mortgage Interest and U.S. Interest modes. Display will read “CDN” when
calculating Canadian interest, and “USA” for U.S. rates.
Finding the Mortgage Amount
Approximately how much could you borrow if the interest rate was
7.8% on a 25-year mortgage, and you could afford $1,500 in month-
ly payments? What if the interest rate was lowered to 7.5%?
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter Annual Interest Rate
7 • 8 ˆ
7.80
Enter Term in Years
2 5 T
25.00
Enter monthly P&I Payment
1 5 0 0 p
1,500.00
Find Mortgage Amount
l
“run” 199,869.55
Enter new Interest rate
7 • 5 ˆ
7.50
Find new Mortgage Amount
l
“run” 205,042.71
