Calculated Industries 3415 - Finding the Loan Amount; Paying off a Mortgage Early (Making Larger Payments)

U SER ’ S G UIDE — 27
Finding the Loan Amount
Approximately how much could you borrow if the interest rate was
7.8% on a 30-year loan and you could afford $1,500 in monthly pay-
ments? What if the interest rate was lowered to 7.5%?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter interest 7 • 8 ˆ 7.80
Enter term 3 0 T 30.00
Enter monthly payment 1 5 0 0 p 1,500.00
Find loan amount l “run” 208,370.81
Enter new interest rate 7 • 5 ˆ 7.50
Find new loan amount l “run” 214,526.44
Paying Off a Mortgage Early (Making Larger Payments)
How long does it take to pay off a 30-year, fixed-rate mortgage of
$150,000 at 8.5% interest if you add an extra $200 to the mortgage
payment each month?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter loan amount 1 5 0 ) l 150,000.00
Enter interest 8 • 5 ˆ 8.50
Enter term 3 0 T 30.00
Find monthly P&I payment p 1,153.37
Add additional payment
amount + 2 0 0 = 1,353.37
Enter as new
payment amount p 1,353.37
Find reduced loan term T “run” 18.15