Finding Apr, Total Finance Charges (Including Mortgage Insurance) - Calculated Industries 3442 User Manual

Finding 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
quoted 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, mortgage insurance, and PIMI
payment? Mortgage insurance is estimated at 0.65% of the loan
amount.
STEPS
Clear calculator
Enter loan amount
Enter interest
Enter term
Find monthly P&I payment p
Enter mortgage ins. %
Find Loan Costs:
Recall loan amount
Find point cost
Add fees and find total
Find APR*
Find finance charges (including
mortgage ins.*, points/fees
and total interest paid)
Find amount financed
(principal minus pts/fees) ˆ
Find total finance charges
plus amount financed
P&I payment
Mo. mortgage insurance
PIMI payment**
*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.
KEYSTROKES
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2 7 5 ) l
6 • 2 5 ˆ
3 0 T
• 6 5 s 9
® l
x 1 • 5 % =
+ 5 5 0 =
s ˆ
ˆ
ˆ
ˆ
ˆ
ˆ
DISPLAY
275,000.00
30.00
"run" 1,693.22
275,000.00
4,125.00
4,675.00
"run" 7.24
392,860.03
270,325.00
663,185.03
1,693.22
148.96
1,842.18
U ' G — 37
SER S UIDE
0.00
6.25
0.65