(12C) Refinancing: When refinancing “resets” the clock. - Printable Version +- HP Forums (https://www.hpmuseum.org/forum) +-- Forum: HP Software Libraries (/forum-10.html) +--- Forum: General Software Library (/forum-13.html) +--- Thread: (12C) Refinancing: When refinancing “resets” the clock. (/thread-6664.html) (12C) Refinancing: When refinancing “resets” the clock. - Eddie W. Shore - 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: 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   31    R/S 06    45, 0    RCL 0 07    11    n 08    15    FV 09    31    R/S  \\ calculate balance, ask for amount of withdrawn 10    30    - 11    16    CHS 12    13    PV 13    0    0 14    15    FV 15    45, 1    RCL 1 16    12    i 17    45, 2    RCL 2 18    11    n 19    14    PMT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)