Calculated Industries 3423 - Manual (Page 30)

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Bi-Weekly Mortgages
Your calculator includes a built-in Bi-Weekly mortgage function ( s
T ), which allows you to convert established, fully amortized
monthly mortgages into Bi-Weeklies (in which one-half the monthly
payment is made every two weeks). Because you make two extra
half-payments per year (e.g., 26 Bi-Weekly payments is like making
13 payments/year), these kinds of mortgages can amount to large
interest savings and a substantial reduction in the time it takes to
pay them off.
You begin solving these problems by setting up the initial monthly
mortgage and then pressing
s T . The first press of the T
displays the Bi-Weekly term. The second press of T shows the
total interest savings over the entire mortgage, a third press calcu-
lates the total interest paid, a fourth press shows the total principal
paid, and a fifth press shows the total P&I payments. A press of
p
will calculate the Bi-Weekly payment.
Bi-Weekly Term Reduction and Payment
Find the monthly P&I payment on a 25-year, $198,500 mortgage at
7.85% annual interest. Then convert it to a Bi-Weekly and find out
how many years it will take to pay off this mortgage, the total interest
savings, total payments and the Bi-Weekly payment.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Mortgage Amount 1 9 8 5 0 0 l 198,500.00
Enter Term in years 2 5 T 25.00
Enter annual Interest rate 7 • 8 5 ˆ 7.85
Find monthly P&I Payment p “run” 1,496.02
Find Bi-Weekly Term s T “run” 20.14
Find total Interest savings T 57,191.24
Find total Interest paid T 193,115.09
Find total principal T 198,500.00
Find total Payments T 391,615.09
Find Bi-Weekly Payment p 748.01
Exit Bi-Weekly Mode o o 0.00
Note: Canadian Mortgage insurance will be included in the Bi-Weekly calculations if it
has been entered.