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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.


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.

Please see the BA Real Estate guidebook for additional information.