Category : Financial and Statistics
Archive   : FREETK.ZIP
Filename : MORTGAGE.TK

 
Output of file : MORTGAGE.TK contained in archive : FREETK.ZIP

TK!2
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#1
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b
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********** MORTGAGE MODEL **********
#2
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salary
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2916.666666666667
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i
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$/mo
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$/yr
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salary
#3
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bracket
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.33
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i
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df
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%
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income tax bracket
#4
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onhand
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8000
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i
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$
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$
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cash for closing costs, down payment
#5
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term
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300
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i
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mo
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yr
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term of mortgage
#6
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rate
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.008750000000000001
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i
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df/mo
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%/yr
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interest rate
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.008333333333333333
#7
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house
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70000
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g
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$
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$
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maximum house price you can afford
#8
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loan
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b
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$
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$
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maximum mortgage allowed by bank
#9
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closing
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b
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$
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$
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closing costs
#10
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downpay
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b
:u
$
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$
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down payment
#11
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dp%
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b
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df
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%
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down payment percentage
#12
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payment
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b
:u
$/mo
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$/mo
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periodic mortgage payment
#13
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tax
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b
:u
$/mo
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$/mo
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property tax
#14
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pit
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b
:u
$/mo
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$/mo
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principal + interest + property tax
#15
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savings
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b
:u
$/mo
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$/mo
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periodic income tax savings
#16
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netpymt
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b
:u
$/mo
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$/mo
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periodic payment with tax savings
#17
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Tp
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b
:u
$
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$
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total amount paid over term
#18
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Tip
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b
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$
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$
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total interest payments over term
#20
:n

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b
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(Type =R to see the Rule Sheet)
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#1
:f
%
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df
:m
.01
#2
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yr
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mo
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12
#3
:f
$/mo
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$/yr
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12
#4
:f
df/mo
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%/yr
:m
1200
#5
:f
df/mo
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%/mo
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100
=r
#1
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closing = .02*loan + 500 " # # # # # # # # # # # # # # # # # # # # # # "
#2
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pit = .28*salary " According to the 1987 Tax Law, property tax "
#3
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onhand = downpay + closing " is no longer deductible, so for 1987 the "
#4
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tax = .025*.75*house/12 " savings = ... equation should be modified. "
#5
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house = loan + downpay " # # # # # # # # # # # # # # # # # # # # # # "
#6
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downpay = house*dp%
#7
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payment = loan*(rate/(1 - (1 + rate)^-term))
#8
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Tp = payment*term
#9
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Tip = Tp - loan
#10
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savings = bracket*(tax + payment*Tip/Tp) "/ average savings and netpymt
#11
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netpymt = pit - savings "\ over the term of loan
#12
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pit = payment + tax " i.e., .28*salary = f(loan,rate,term) + f(house)
#14
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" Note: The model lets you find how expensive a house you can buy given the
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C
#15
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" salary, loan terms, etc.; how much you need to earn to buy a certain
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C
#16
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" house; and so on. In the 1st case you have to guess the house price.
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C
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