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— 9
A
Adjustable Rate Mortgage
— Calculates the pay-
ment and re-amortizes a fully or partially amortized
Adjustable Rate Mortgage based on the inputs of
both an Interest Adjustment and a Term Adjustment,
which are entered using the Colon : key (Interest
Adjustment : Term Adjustment). For example, an
ARM which increases 1% every six months is entered
1 : • 5 A; an ARM which decreases 1% every
six months is entered 1 : • 5 s A. (ARM
rates are stored permanently.)
s %
Lifetime Interest Cap (ARMs)
— Sets the lifetime
interest cap for ARMs by entering the maximum
interest increase. This is a permanent setting. To
clear, set the cap back to zero (0 s %).
s T
Bi-Weekly (Bi-Wkly)
— Converts a regular monthly
loan to a Bi-Weekly loan, where the buyer may real-
ize significant interest savings. After loan variables
are entered, pressing s T displays the reduc-
tion in term. The second press of T shows the
total interest savings; third press displays the total
interest
paid
; fourth press displays the total principal;
and fifth press displays the total principal and inter-
est paid. Pressing p will calculate the bi-weekly
payment. Pressing
s T again will return and
re-calculate to the original term, or pressing o
twice will exit Bi-Weekly Mode.
Tax Savings Keys
s p
Estimated Tax Savings (Tax Svgs)
— Calculates
an estimated annual income tax savings for a mort-
gage, based on entered loan variables, including
property tax, mortgage interest, and tax bracket. You
must enter a tax bracket, then press s p p to
display the estimated annual income tax savings;
the third consecutive press of p will display the
monthly tax savings; and the fourth press will display
the estimated “after-tax”, or net mortgage payment.
Note: This function is different from the mortgage interest deduc-
tion figured in the Amortization calculation, as it also includes
property tax for a total estimated tax savings and only provides
an annual estimate, not an estimate for a specified range. (See
the
a
key definition for details).
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