Adjustable Rate Mortgage Vs. Fixed-Rate Mortgage - Texas Instruments BA Real Estate Supplementary Manual

Adjustable Rate Mortgage vs. Fixed-Rate Mortgage

1. Use the Adjustable Rate Mortgage worksheet to calculate the
payments for each adjustment period of the ARM and record
those values in steps 4, 9, 15, and 21 respectively.
2. Use the Mortgage Payment—Principal and Interest worksheet
to calculate the payment for the fixed-rate mortgage and record
that value in steps 3, 8, 14, and 20.
3. Enter amount of fixed-rate payment.
4. Subtract amount of initial ARM payment.
5. View monthly savings/costs with ARM
payment.
6. Multiply monthly savings/costs by the number
of months in the initial ARM period.
7. Record total savings/costs during this period.
8. Enter amount of fixed-rate payment.
9. Subtract amount of ARM payment for second
period.
10. View monthly savings/costs during second
period.
11. Multiply monthly savings/costs by number of
months in this adjustment period.
12. Add to recorded savings/costs from step 7.
13. Record accumulated savings/costs.
14. Enter amount of fixed-rate payment.
15. Subtract amount of ARM payment for
third period.
16. View monthly savings/costs during
third period.
17. Multiply monthly savings/costs by number of
months in this adjustment period.
18. Add to recorded savings/costs from step 13.
19. Record accumulated savings/costs.
Prepared for ________________________________ By _________________________ Date ____________
Copyright © 1993, 1996 by Texas Instruments Incorporated.
Texas Instruments grants permission to reproduce this page for limited office use with clients. All other rights reserved.
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BA Real Estate™ Worksheet
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