User`s guide

64 — Q

UALIFIER

LUS

III

APR, Total Finance Charges (Including Mortgage Insurance)

You are financing a mortgage of $275,000 for 30 years at a nominal

or quoted rate of 6.25% interest. The cost of getting the loan is quot-

ed as 1.5 points plus $550 in fees. What is the APR (including

Mortgage Insurance), total finance charges, principal amount

financed, total cost, P&I payment, monthly Mortgage Insurance, and

PIMI payment? Mortgage Insurance is estimated at 0.65% of the

loan amount.

STEPS KEYSTROKES DISPLAY

Clear calculator o o 0.00

Enter Loan Amount 2 7 5 ) l 275,000.00

Enter Interest 6 • 2 5 ˆ 6.25

Enter Term 3 0 T 30.00

Find monthly Payment p “run” 1,693.22

Enter Mortgage Ins. % • 6 5 Â 0.65

Find Loan Costs:

Recall Loan Amount ® l 275,000.00

Find point cost x 1 • 5 % = 4,125.00

Add fees and find total + 5 5 0 = 4,675.00

Find APR* s ˆ “run” 7.24

Find finance charges (including

Mortgage Insurance*

and total Interest paid) ˆ 392,860.03

Find amount financed

(Principal minus pts/fees) ˆ 270,325.00

Find total finance charges

plus amount financed ˆ 663,185.03

P&I Payment ˆ 1,693.22

Mo. Mortgage Insurance ˆ 148.96

PIMI Payment** ˆ 1,842.18

*APR includes Mortgage Insurance, if entered. Total finance charges include mort-

gage insurance over the life of the loan, to present a worst-case scenario; however,

most people can eliminate MI once a certain LTV is met.

**Payment includes estimated monthly Mortgage Insurance.

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