28 Mortgages and Amortization
BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM
Page 28 of 36
Press
#
,
until the BGN indicator disappears.
Steps
Keystrokes
Display
Clear TVM values.
#
-
0.00
Enter term in years.
30
0
TRM=
30.00
Enter interest rate.
8
1
I% =
8.00
Enter loan amount.
70
q
2
LN = 70,000.00
Enter balloon amount
as a negative.
20
q
t
4
FV =
-
20,000.00
Compute payment.
$
3
PMT=
-
500.22
Calculating Monthly Payment for a Mortgage with a Balloon
Payment
1. Clear TVM values (if not already cleared).
#
-
2. Enter term of loan (in years).
30
0
3. Enter interest rate.
8
1
4. Enter loan amount.
$70,000
2
5. Enter amount of balloon payment, as a
negative value.
$20,000
t
4
6. Compute monthly payment.
$
3
$
.
500.22
Finding the Payment for a Mortgage with a Balloon
You are making a $70,000 loan at 8% over 30 years, with
a balloon payment of $20,000 due at the end of the loan.
How much will your monthly payment be?
Solution
