Calculated Industries 3423 - Manual (Page 69)

64 — Q
UALIFIER
P
LUS
® 4
X
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-pay-
ments per year (since 26 Bi-Weekly payments is like making 13 pay-
ments/year), these kinds of loans can amount to large interest sav-
ings 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 . A second press of T
shows the total interest savings over the entire mortgage, a third
press calculates the total interest paid, a fourth press shows the total
principal paid, and a fifth press shows the total payments. A press of
p will calculate the Bi-weekly Payment.
Bi-Weekly Term Reduction and Payment
Find the monthly payment on a 30-year, $212,500 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 2 1 2 5 0 0 l 212,500.00
Enter Term in years 3 0 T 30.00
Enter annual Interest rate 7 • 8 5 ˆ 7.85
Find monthly P&I Payment p “run” 1,537.09
Find Bi-Weekly Term s T “run” 22.97
Find total interest savings T 94,305.23
Find total interest paid T 246,545.97
Find total principal T 212,500.00
Find total payments T 459,045.97
Find Bi-Weekly Payment p 768.54
Clear calculator o o 0.00