(12C) Refinancing: When refinancing “resets” the clock.
08-07-2016, 07:52 PM
Post: #1
 Eddie W. Shore Senior Member Posts: 1,046 Joined: Dec 2013
(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:  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PMT \\ calculate payment 05 31 R/S 06 45, 0 RCL 0 07 11 n 08 15 FV 09 31 R/S \\ calculate balance, ask for amount of withdrawn 10 30 - 11 16 CHS 12 13 PV 13 0 0 14 15 FV 15 45, 1 RCL 1 16 12 i 17 45, 2 RCL 2 18 11 n 19 14 PMT 20 43, 33, 00 GTO 00 Example: A couple purchased a house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)
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