Texas Instruments BA Real Estate - Paying off a Loan Early by Making Larger Payments

Mortgages and Amortization 25
BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM
Page 25 of 36
Paying Off a Loan Early by Making Larger Payments
1. Clear TVM values (if not already cleared).
#
-
2. Enter term of loan (in years).
30
0
3. Enter interest rate.
7.75
1
4. Enter loan amount.
$125,000
2
5. Compute monthly payment.
$
3
$
.
895.52
6. Add extra payment amount (as a negative
amount).
a
$100
t
7. Calculate and enter new, larger payment.
j
3
$
.
995.52
8. Compute new term.
$
0
21.56