08-07-2016, 07:52 PM

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:

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)

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:

STEP CODE KEY

01 45, 11 RCL n

02 44, 2 STO 2

03 14 PMT

04 14 PMT \\ calculate payment

05 31 R/S

06 45, 0 RCL 0

07 11 n

08 15 FV

09 31 R/S \\ calculate balance, ask for amount of withdrawn

10 30 -

11 16 CHS

12 13 PV

13 0 0

14 15 FV

15 45, 1 RCL 1

16 12 i

17 45, 2 RCL 2

18 11 n

19 14 PMT

20 43, 33, 00 GTO 00

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)