PV: Unused | PMT: Unused |
FV: Unused | R0: Fin. charge |
R1: Payment# | R2: # moths |
|
1.Key in the program.
2.Key in the number of months in the loan and press 
.
3.Key in the payment number when prepayment occurs and press
.
4.Key in the total finance charge and press 
to obtain the unearned interest (rebate).
5.Key in the periodic payment amount and press 
to find the amount of principal outstanding.
6.For a new case return to step 2.
Keystrokes Display
30 |
|
|
25 | 5.81 | Rebate. |
|
| |
180 |
|
|
39.33 | 190.84 | Outstanding principal. |
|
|
Graduated Payment Mortgages
The Graduated Payment Mortgage is designed to meet the needs of young home buyers who currently cannot afford high mortgage payments, but who have the potential of increasing earning in the years on come.
Under the Graduated Payment Mortgage plan, the payments increase by a fixed percentage at the end of each year for a specified number of years. Thereafter, the payment amount remains constant for remaining life of the mortgage.
The result is that the borrower pays a reduced payment (a payment which is less than a traditional mortgage payment) in the early years, and in the later years makes larger payments than he would with a traditional loan.
Over the entire term of the mortgage, the borrower would pay more than he would with conventional financing.
Given the term of the mortgage (in years), the annual percentage rate, the loan amount, the percentage that the payments increase, and the number of years that the payments increase, the following
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