Graduated Payment Mortgages - HP 12c Platinum Reference Manual

32 Lending
12c platinum / 12C
RPN KEYSTROKES
g(000
fs
N: Unused
FV: Unused
R -R : Unused
3 .6
Program Instructions:
1. Key in the program.
2. Key in the number of months in the loan and press \(³).
3. Key in the payment number when prepayment occurs and press \(³).
4. Key in the total finance charge and press t to obtain the unearned interest
(rebate).
5. Key in the periodic payment amount and press t to find the amount of principal
outstanding.
6. For a new case return to step 2.
12c platinum / 12C
RPN Keystrokes
30\
25\
180t
39.33t

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 to 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.
DISPLAY
026,43,33,000 ~
REGISTERS
i: Unused
R : Fin. charge
0
12c platinum
ALG Keystrokes
30³
25³
180t
39.33t
12c platinum
ALG KEYSTROKES
³
g(000
fs
PV: Unused
R : # months
1
Display
Rebate.
5.81
Outstanding principal.
190.84
DISPLAY
026, 34
027, 36
028,43,33,000
PMT: Unused
R : Payment #
2
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