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POCKET REFERENCE GUIDE — 29
APR and Total Finance Charges,
Including Mortgage Insurance
• Loan: $250,000
• Term: 30 years
• Interest: 7%
• Cost: 1.5 points + $550
• Mortgage insurance (MI): $1,200/year
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 2 5 0 ) l
250,000.00
Enter term 3 0 T 30.00
Enter interest 7 ˆ 7.00
Find payment p 1,663.26
Enter MI 1 2 0 0 s I
1,200.00
Find Loan Costs:
Recall loan ® l 250,000.00
Find points x 1 • 5 % = 3,750.00
Add fees and
find total + 5 5 0 = 4,300.00
Find APR s ˆ 7.77
Find total
charges ˆ 389,072.25
Amt. financed ˆ 245,700.00
Total cost ˆ 634,772.25
P&I payment ˆ 1,663.26
Monthly MI ˆ 100.00
PIMI payment ˆ 1,763.26
3405PRG-E-B 1/9/04 8:45 AM Page 29
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