Texas Instruments BA Real Estate - Calculating a Mortgage with Bi-Weekly Payments

42 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 42 of 36
Press
# ,
until the BGN indicator disappears.
Steps Keystrokes Display
Clear TVM values.
#
-
0.00
Set P/Y and C/Y to 12.
#
+
12
j
j
P/Y = 12.00
C/Y = 12.00
12.00
Enter the loan values.
30
0
8
1
115
q
2
TRM= 30.00
I% = 8.00
LN = 115,000.00
Show bi-weekly
payment amount,
number of payments,
years to pay off the
loan, and interest
saved.
L
j
j
j
PMT=
-
421.91
N = 590.84
YRS= 22.66
SAV= 54,498.00
Exit.
j
54,498.00
Calculating a Mortgage with Bi-Weekly Payments
You are borrowing $115,000 at 8% for 30 years. What will
be the effects and savings if you pay off the loan with
bi-weekly payments, instead of monthly payments?
Solution