68 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
P
X2
Equity Builder Pick-A-Payment Loan (Zero-Month/30-
Term) vs. Standard Fixed-Rate Loan
FIXED-RATE LOAN EB P-A-P LOAN
Loan Amount
300,000
300,000
Interest/Start Payment 7.5%
$1,500
(Start Payment)
7.50%
(Note%)
Term
30
0
(Start No. of Mo.’s)
30 years
ROI%
--
7%
Pmt Cap %
--
5%
Using most of the same values from the previous example, compare
the fixed-rate loan to an Equity Builder P-A-P loan. The start pay-
ment for the regular P-A-P loan is $1,500, and the resulting initial EB
P-A-P payment is $750. Also, in this problem, find the interest-only
payment, and the 30- and 15-year loan payments (based on the EB P-
A-P Note%), as well as the EB P-A-P deferred interest (resulting
from negative amortization).
STEPS
KEYSTROKES
DISPLAY
1.
Enter Fixed-Rate Loan Values:
Clear Calculator
o o
0.00
Enter loan amount
3 0 0 ) l
300,000.00
Enter interest rate
7 • 5 ˆ
7.50
Enter term
3 0 T
30.00
2.
Solve for Fixed-Rate Loan Payment and Total Cost:
Find monthly P&I payment
p
2,097.64
Amortize the loan
a
1-360
Find total interest
a
455,151.67
Find total principal
a
300,000.00
Find total principal/interest
a
755,151.67*
3.
Enter EB P-A-P Loan Values:
Enter Start Rate term
(in months)
0 ß
0.00
Enter P-A-P term
(in years)
3 0 s ß
30.00
Enter Start Payment
1 5 0 0 S
1,500.00
Calculate Start interest %
S
4.39
Enter P-A-P actual rate
(Note%)
7 • 5 s S
7.50
Enter ROI%
7 s %
7.00
Enter Payment Cap%
5 s 6
5.00
(Cont’d)
