# Category : Financial and Statistics

Archive : FREETK.ZIP

Filename : MORTGAGE.TK

TK!2

=v

#1

:n

:s

b

:c

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

#2

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salary

:v

2916.666666666667

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i

:u

$/mo

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$/yr

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salary

#3

:n

bracket

:v

.33

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i

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df

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%

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income tax bracket

#4

:n

onhand

:v

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

:n

term

:v

300

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i

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mo

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yr

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term of mortgage

#6

:n

rate

:v

.008750000000000001

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i

:u

df/mo

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%/yr

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interest rate

:f

.008333333333333333

#7

:n

house

:v

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

:n

loan

:s

b

:u

$

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$

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maximum mortgage allowed by bank

#9

:n

closing

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b

:u

$

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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

:u

df

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%

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down payment percentage

#12

:n

payment

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b

:u

$/mo

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$/mo

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periodic mortgage payment

#13

:n

tax

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b

:u

$/mo

:d

$/mo

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property tax

#14

:n

pit

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b

:u

$/mo

:d

$/mo

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principal + interest + property tax

#15

:n

savings

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b

:u

$/mo

:d

$/mo

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periodic income tax savings

#16

:n

netpymt

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b

:u

$/mo

:d

$/mo

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periodic payment with tax savings

#17

:n

Tp

:s

b

:u

$

:d

$

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total amount paid over term

#18

:n

Tip

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b

:u

$

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$

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total interest payments over term

#20

:n

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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

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C

#15

:r

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

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C

#16

:r

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

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C

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