Texas Instruments BA Real Estate - Adjustable Rate Mortgage

Mortgages and Amortization 35
BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM
Page 35 of 36
Adjustable Rate Mortgage
2. Set number of payments per year and number
of compounding periods per year (if not
already set).
#
+
12
12
j
j
3. Enter term of loan (in years).
30
0
4. Enter interest rate.
6
1
5. Enter loan amount.
$100,000
2
6. Start ARM.
M
7. Accept the number of the initial payment (P1).
1
j
8. Enter the number of the ending payment (P2)
for the first adjustment period.
12
j
9. Accept the initial interest rate.
6.00
j
10. View monthly payment amount for this
adjustment period.
$
.
599.55
11. View balance at end of this adjustment period.
j
$98,772.00
12. Return to P1 and accept updated P1 as beginning
payment of second adjustment period.
j
13.00
j
13. Accept the updated P2, or enter the number of the
ending payment of the second adjustment period.
24.00
j
14. Enter the interest rate for this period.
8
15. View payment amount for this adjustment period.
j
$
.
730.86
16. View balance at end of this adjustment period.
j
$97,870.87
17. Return to P1 and accept updated P1 as the
number of the beginning payment of the new
adjustment period.
j
25.00
j
18. Accept updated P2 as the number of the ending
payment of the new adjustment period.
36.00
j
19. Enter the interest rate for this period.
10
20. View payment amount for this adjustment period.
j
$
.
869.05
21. View balance at end of this adjustment period.
j
$97,199.12
Repeat steps 17 through 21 until the maximum interest rate has been reached.