If you want to take a home mortgage, you must have clear estimation about how much money you have and how much you can spend on repaying a loan. The repayment money should include the principal amount and the rate of interest on home mortgage. The amount of money to be repaid depends on what your payment terms and period are. It can be paid on a monthly, bi-monthly, half-yearly or yearly basis. Mortgage calculators will be of great use in calculating all these.
Depending on the type of home mortgage one wants to choose, there are different calculators to him with calculations. There is one type of mortgage calculator with which a buyer can decide how much he can afford for a house. In this, there are two types one will help him decide price of house is with in his range and the other one will help him know how much down payment he will have to make. This will allow him to decide on what type of real estate is ideal for him and also how much he has to save up for a down payment before applying for a home mortgage.
Another type is the mortgage calculator to help a person consolidate all non-mortgage debts. This type of mortgage calculator is further sub-divided into 3 categories one to help him consider the option of merging non-mortgage and mortgage debts into one consolidated amount; another to help consider a refinance option of taking another home loan or by cash out and the third for those who have 2 existing mortgages and are consider ways of paying off the older mortgage.
Popular mortgage calculators are those that can be used to calculate each type such as fixed arm mortgages, adjustable arm mortgages, flexible amortizations etc. There is one type of mortgage calculator which will help the borrower calculate how much he can save by paying extra for the principal amount. This calculator varies depending on the mode of payments like bi-weekly, extra monthly etc., The refinance mortgage calculator is very another popular one for those who want to whether refinancing a property would fetch them more money in the long run. This again is classified in two depending on the refinance option a borrower wants to go for.
The insurance calculator helps the borrower know how many insurance premiums he will have to pay for the mortgage. The amortization mortgage calculator is used for calculating tax savings on interest and property appreciation. There is even a mortgage calculator that will help the borrower compare any two different mortgages and choose the better of the two that will suit him. For example one make comparison between adjustable and fixed rate mortgages or between government and private loans.
Fees and paying points add a lot to the mortgage amount being repaid. There is a mortgage calculator exclusively to calculate this amount for both FRM and ARM. Another mortgage calculator is used to determine which mortgage is more feasible, whether short term or a long term. All these mortgage calculators are available exclusively on the websites of lending institutions. Any borrower can use these calculators free of cost.
To choose the best home mortgage, you have to:
make an estimate of your current and future financial situation
study financial journals and see the interest rate trend
know how much money you can afford to pay as down payment for the house which depends on how long you plan to live in it.
know various types of mortgages available
decide which program will suit your financial position in the long run
To the novice, these many mortgage schemes, mortgage calculators and their uses will look quiet confusing in the beginning. Which type of mortgage requires which type of calculator? Which lending institution to approach?-these are a few important questions which any newcomer find it difficult to answer. Patience and long term study of the real estate market is very important before getting into it. A real estate broker can be very useful in guiding you through the entire process of selecting the best home mortgage for your purpose.
Article by John Hoots of Chicago, who is a specialist in real estate investments. For more information on Chicago home loans, visit his site today.
Watch the video related to investment calculator
San Diego Investment Club – FIBI June Meeting with Bill Tan on Creative Financing and Real Estate Math. We Discussed the Principle of Real Estate Financing, Cash Flow Analysis, Rent Payments and Basic Uses of Financial Calculator. Bill Tan is the Current President of San Diego Creative Investors Association (SDCIA)
The formula is PV = FV / (1+ r)^n
That's Present Value (PV) = Future Value (FV) divided by 1 plus the interest rate (i) to the power of n, where n equals the number of periods
So on a regular calculator:
Divide $250 by 1.15 squared.
So first find the square of 1.15
1.15 X 1.15 = 1.3225
Then divide $250 by 1.3225 to get the answer
$250 / 1.3225 = $189.04
On a financial calculator (like the HP12C that I use), with present value functions on it, you enter:
$250 as the FV (Future Value)
15% as i (interest)
2 as N (number of periods)
Then calculate for the PV (Present Value)
The answer comes back as a negative $189.04. It's negative, as that is what you have to pay today, for a return of $250 in two years given an interest rate of 15%.
"s"cientific
If it is an HP12c type financial calculator,
Enter the periodic payment as PMT
Enter the annual interest as i (or monthly interest i/12)
Enter the term in years as n (or term in months as n*12)
Hit the PV (present value) key
Worked example:
i = 5.5% per annum
n = 30 years
PMT = $500/month or $6000/year
PV = $87202.47
Hope this helps.
Yes the 84 has a financial application that cannot be deleted from the calculator using any means i have tried. Its very powerful, and i have used it in math class numerous times. Although that's true, there many calculators for less than 30 dollars that will save you time because its made for finances. My dad had that calculator, don't remember the number of it, but was much better at typing commands that the teacher wanted. If you want it to be easyer then go for it, if not, im fairly certain your 84 will cut it.
Online manuals:
http://h20331.www2.hp.com/Hpsub/downloads/17b2pFAQ.pdf
http://h20331.www2.hp.com/hpsub/cache/301430-0-0-225-121.html
The financial calculator can do, with a touch of a button, all interest calculations for a payment stream of regular payments, and can approximate the interest rate if only the payments and present value are given. While it is possible to do this with any calculator, the financial ones save you considerable time.
You must buy a calculator that has "interest rate functions" and "loan calculation functions".
The TI Ba-35 solar as well as the HP-12C calculators have these functions. This is not an endorsement though. There may be others.
Just make sure there is a "PMT", "PV", "calculate i", "FV" and "N" (number of payments) buttons on your calculator (or the equivalent).
I just checked the web. The TI-83 does NOT have the financial functions needed for a finance course.
While it is true you can do these problems by setting up geometric series or using Newton's method, that would be like computing the logarithm with tables while your friends are racing ahead with calculators!
HTH
Your calculator CAN be programmed to perform all the functions of a financial calculator, but it will be a MAJOR pain to use them. You will find it is well worth the money to just buy one designed for finance.
A better way to state you Question is:
What is the rate of appreciation (i/Yr) for a painting that is purchased today for $2M (PV) and sold 5yrs from now (n=60) for $5M (FV)… there being no additional outlays during the coming 5yrs (PMT = zero).
Input the above and Press the (i/Yr) button to get the answer of 18.466% per yr.
The exact procedure depends on which financial calculator you have. I am willing to BET the calculator will TELL you if you can find a help button or one labeled PV (present value). I am 100% positive it you visit the manufacturer's website, you can download a complete manual.