32 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 32 of 36
To calculate information on an ARM, set up the mortgage
terms in the TVM model, and then press
M
to start the
ARM model.
Name
Meaning
P1 =
The first payment number in a range of
payments (initial value=1).
P2 =
The ending payment number in the range.
I% =
The interest rate within the range P1 to P2.
Initially, this is a copy of the TVM I% value.
PMT=
The payment amount within the range P1 to
P2.
BAL=
The loan balance after the last payment in the
range P1 to P2.
The model starts with P1=1, and the calculator updates P1
automatically for each range of payments. Attempting to
enter a value for P1 exits the ARM model. Press
j
repeatedly to display the results and to repeat the
sequence for the next range.
At each repetition, the calculator updates P1 and P2
automatically. If the span between P1 and P2 is different
from the previous range, you must enter the new P2 value
manually. You cannot change P1.
•
I% and PMT are not the TVM I% and PMT values,
although I% is initially a copy of the TVM I% value.
Using this model does not change any TVM values.
•
Because a change in the FIX setting would affect
accuracy, the
#
o
key is ignored until you exit the
model.
•
Pressing
!
at any time, except when entering a
value, exits the model and leaves the last displayed
value in the display, with no label.
•
You can store a displayed value to memory or to TVM.
Storing to TVM, however, exits the ARM model.
Adjustable-Rate Mortgage (ARM)
The ARM model lets you find the payment amount for
each range of payments in an adjustable-rate mortgage.
ARM Values
Notes on the
ARM Model
