30 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 30 of 36
You know that the property taxes and insurance rates for
the lake area average 2.38% and 0.78% respectively. The
couple has $20,000 to use as a down payment. With a
30-year note at 9%, what will their mortgage payment
(PMT) and total monthly payment (PITI) be?
Press
#
,
until the BGN indicator disappears.
Steps
Keystrokes
Display
Clear TVM values.
#
-
0.00
Set P/Y and C/Y to 12.
#
+
12
j
j
P/Y =
12.00
C/Y =
12.00
12.00
Enter local tax rate.
2.38
#
Z
TX%=
2.38
Enter insurance rate.
.78
#
Q
IS% =
0.78
Enter price of
property.
85
q
@
PRC= 85,000.00
Enter term in years.
30
0
TRM=
30.00
Enter interest rate.
9
1
I% =
9.00
Enter price less down
payment.
85
q
X
20
q
j
2
LN =
65,000.00
Compute mortgage
payment (principal
and interest).
$
3
PMT=
-
523.00
Compute total
monthly payment
(PITI).
$
&
PITI=
-
746.83
Note:
If you do not enter a value for sales price, the tax
and insurance percentages will compute PITI based on the
loan amount. The result will be a smaller PITI payment
than expected.
Computing Total Payment (PITI)
A couple is interested in a small lake-front property, for
which the owner is asking $85,000. The buyers need to
know the approximate amount of their total payment on
the property.
Background
Solution
