(12C) Refinancing: When refinancing “resets” the clock.

08072016, 07:52 PM
Post: #1




(12C) Refinancing: When refinancing “resets” the clock.
Sometimes when a long term mortgage is refinanced, the original length of term is reset. We will assume payments are made monthly.
Input: Store the following amounts in the registers: Clear the TVM variables by pressing [ f ] [x<>y] (CLEAR FIN) Original number of payments, [ n ] Annual rate, [ 12÷ ] [ I ] Loan Amount, [ PV ] Number of payments that have been made prior to refinance, [STO] [ 0 ] (R0) New annual rate, [ENTER], 12, [ ÷ ], [STO] [ 1 ] (R1) Run the program by pressing [R/S]. The original payment is calculated. Press [R/S] again to get the balance. Enter any additional monies (can be $0.00) received due to the refinance. Finally, press [R/S] again, and the new payment is calculated. Program: Code:
Example: A couple purchased a house for $185,000. The mortgage lasts for 30 years (360 months) with a 4.8% interest rate (0.4% periodic rate). 180 payments have passed, and the couple is able to refinance the mortgage (but pay that amount in 30 years) at a rate of 3.84%. $15,000 is also cashed out. Input: 360 [ n ] 0.4 [ i ] 185000 [PV] 180 [STO] [ 0 ] 0.32 [STO] [ 1 ] Results: [R/S] 970.63 (The original payment is $970.63) [R/S] 124,373.78 (Balance of $124,373.78) Enter 15000, press [R/S] 652.60 (New payment is $652.60) 

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