# FINANCIA - FREETK.ZIP - MORTGAGE.TK

TK!2

=v

#1

:n

:s

b

:c

********** MORTGAGE MODEL **********

#2

:n

salary

:v

2916.666666666667

:s

i

:u

$/mo

:d

$/yr

:c

salary

#3

:n

bracket

:v

.33

:s

i

:u

df

:d

%

:c

income tax bracket

#4

:n

onhand

:v

8000

:s

i

:u

$

:d

$

:c

cash for closing costs, down payment

#5

:n

term

:v

300

:s

i

:u

mo

:d

yr

:c

term of mortgage

#6

:n

rate

:v

.008750000000000001

:s

i

:u

df/mo

:d

%/yr

:c

interest rate

:f

.008333333333333333

#7

:n

house

:v

70000

:s

g

:u

$

:d

$

:c

maximum house price you can afford

#8

:n

loan

:s

b

:u

$

:d

$

:c

maximum mortgage allowed by bank

#9

:n

closing

:s

b

:u

$

:d

$

:c

closing costs

#10

:n

downpay

:s

b

:u

$

:d

$

:c

down payment

#11

:n

dp%

:s

b

:u

df

:d

%

:c

down payment percentage

#12

:n

payment

:s

b

:u

$/mo

:d

$/mo

:c

periodic mortgage payment

#13

:n

tax

:s

b

:u

$/mo

:d

$/mo

:c

property tax

#14

:n

pit

:s

b

:u

$/mo

:d

$/mo

:c

principal + interest + property tax

#15

:n

savings

:s

b

:u

$/mo

:d

$/mo

:c

periodic income tax savings

#16

:n

netpymt

:s

b

:u

$/mo

:d

$/mo

:c

periodic payment with tax savings

#17

:n

Tp

:s

b

:u

$

:d

$

:c

total amount paid over term

#18

:n

Tip

:s

b

:u

$

:d

$

:c

total interest payments over term

#20

:n

:s

b

:c

(Type =R to see the Rule Sheet)

=u

#1

:f

%

:t

df

:m

.01

#2

:f

yr

:t

mo

:m

12

#3

:f

$/mo

:t

$/yr

:m

12

#4

:f

df/mo

:t

%/yr

:m

1200

#5

:f

df/mo

:t

%/mo

:m

100

=r

#1

:r

closing = .02*loan + 500 " # # # # # # # # # # # # # # # # # # # # # # "

#2

:r

pit = .28*salary " According to the 1987 Tax Law, property tax "

#3

:r

onhand = downpay + closing " is no longer deductible, so for 1987 the "

#4

:r

tax = .025*.75*house/12 " savings = ... equation should be modified. "

#5

:r

house = loan + downpay " # # # # # # # # # # # # # # # # # # # # # # "

#6

:r

downpay = house*dp%

#7

:r

payment = loan*(rate/(1 - (1 + rate)^-term))

#8

:r

Tp = payment*term

#9

:r

Tip = Tp - loan

#10

:r

savings = bracket*(tax + payment*Tip/Tp) "/ average savings and netpymt

#11

:r

netpymt = pit - savings "\ over the term of loan

#12

:r

pit = payment + tax " i.e., .28*salary = f(loan,rate,term) + f(house)

#14

:r

" Note: The model lets you find how expensive a house you can buy given the

:s

C

#15

:r

" salary, loan terms, etc.; how much you need to earn to buy a certain

:s

C

#16

:r

" house; and so on. In the 1st case you have to guess the house price.

:s

C

%Tv,f,0,5,0,1,0