Education Technology

# Knowledge Base

## Solution 18169: Finding the New Monthly Payment and APR of a Re-financed Loan Using the BA Real Estate™.

### How can I find the new monthly payment and APR of a re-financed loan using the BA Real Estate?

Please see the instructions below on finding the APR of a refinanced loan using the BA Real Estate.

Example:

Five years ago, a couple purchases a home with a 30 year, 200,000 mortgage loan at 12% annual interest. The couple can now re-finance the loan balance at 8.5% annual interest, provided they pay 2 points plus a $1,000 fee. What is the new monthly payment and the APR of the new loan? • Press [2nd] [BGN/END] until the BGN indicator disappears. • Press [2nd] [CLR TVM] to clear the TVM values. • Press [2nd] [P/Y] and enter 12, then press [=] [=]. • Enter 30 and press [TERM]. • Enter 12 and press [I%]. • Enter 200 and press [000] [LOAN]. • Press [CPT] [PMT] to compute the monthly payment. The calculator yields -2,057.23. The payment is$2,057.23.

• Enter 5 and press [TERM] [CPT] [FV] to find the loan balance. The calculator yields -195,326.44. The balance is $195,326.44. • Press [+/-] [LOAN] [0] [FV] to replace the original loan amount and to clear FV. • Enter 30 and press [TERM]. • Enter 8.5 and press [I%]. • Press [CPT] [PMT] to compute the new monthly payment. The calculator yields -1,501.89. The new payment is$1,501.89.

• Press [APR] [=] to start the APR register.

• Enter 2 and press [=].

• Enter 1000 and press [=].

The APR is 8.78.