The Basic Problem Solved for Real Estate Purchase

First of all, I use the BA II Plus financial calculator from Texas Instruments.

Again, we are trying to solve what your payment will be. However, we will only be able to provide a rough estimate because we don’t know the exact data the lending institution will use but we be close.

Keep in mind that we use the buttons on the third row and the bottom in the top left-hand corner.

CPT is for computing the data

N is the of payment you’ll make. If you loan is 30 years then you’ll make 360 payments

I/Y is for the interest yield

PV is the present value

PMT is the payment and FV is the future value.

Let’s begin setting up our example. You’ve found a home for $450,000 And you have $25,000 for your earnest money (the downpayment). Thus, you are borrowing $425,000. You have a great credit score. Your interest will be 6.25% and it is a 30-year loan.

We inter the data by entering the number and then its button.

Enter 360 then N

(6.5/12) then I/Y this is because each month you’re paying only a 12^th of the years interest

225000 then PV

0 then FV Because you plan on paying this loan off

Now hit CPT and then PMT $1,580.17

That is your payment.

If you know three of the numbers you can find the fourth the numbers (the N; I/Y; PV or PMT) you can find the fourth by entering what you have and the FV is optional sometimes.

It good to play around on this tool once you get it and there are of course people who have done YouTube on different problems also.

Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity, color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status.) He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California.