Technology again helps us make our lives easier. It is in this article we will explain how to use an HP 12c calculator to calculate mortgage loans . If you own this equipment, take advantage of its resources and functions. We will give you a brief review in relation to the loan and the calculator that we should know.
How to Use an HP 12C Calculator to Calculate Home Loans
Index( )
- Mortgage loan
- HP 12c Calculator
- Calculate the mortgage loan
Mortgage loan
It is a financial product in which a financial institution grants us an amount of money based on a real guarantee. This guarantee can be a property. In case of failure in the payment conditions, the financial institution may demand the payment of the debt through judicial processes. The case may come of keeping the house as a partial or total part of the charge. Mortgage loans must meet certain characteristics:
- There must be a property.
- A public deed must be made, endorsed in the property registry, its drafting is very simple and there are several models to apply according to the need.
- The time period is usually medium to long term (between 15 and 30 years).
- The interest rate can change, between fixed, mixed or variable. It all depends on the fee or the type of currency.
- The conditions vary depending on the financial institution and the purpose of the loan.
- Important and that you should not forget when paying or repaying the entire loan. The financial institution must verify the cancellation of the debt in the Registry. If not, you run the risk that the mortgage will be listed as “alive. “
HP 12c Calculator
This device is a financial calculator. That integrate keys with multiple functions . We will try to explain the handling of its buttons to you. The main function is specified with characters printed in white, which you can easily locate in the upper section of the calculator.
The alternate functions are indicated with golden color characters printed above the key, and below the key characters printed in blue. If we want to activate the alternative functions, we must use another button. For example. To activate the functions in gold, press the prefix “f” key and then the function button. To activate the functions in blue, just press the “g” button and then the function key.
When you press the prefix “f” or “g” button on the calculator screen you will see an f / g indicator, signaling the activation of the function . Once you press the function key, the indicator turns off. An advantage that we can notice is that, unlike a computer with a keyboard, it is not necessary to hold down the keys. The calculator recognizes it and activates it with one touch.
Calculate the mortgage loan
To better understand the explanation, we will use an example . To calculate the installment of a mortgage loan, suppose that the loan amounts to $ 100,000. The interest rate is 5% per year. The condition is to pay it over a period of 20 years. And you want to find the calculation of the monthly payments. Well, we will do it in steps:
- Enter the amount of “100,000”.
- Press the “<PV>” key. PV stands for present value. In Spanish it would be, current value of money. By pressing the key the device recognizes it as the amount of money borrowed.
- Now enter “20”. Here you set the loan repayment period, which is 20 years.
- Then, press the “<blue g>” button and the “i” (interest rate). The display will show the value of 0.42. Indicating the monthly percentage interest rate.
- Proceed to press the “<PMT>” key (periodic payments). You will see on the screen this value “-659.96”. Ultimately that is the monthly fee. It should be noted that this function can also be used in Excel , if it seems easier for you.
Actually, its calculation is simple. It is a matter of familiarizing yourself with the financial calculator and its built-in functions . Of course, it is not the only option, we can take advantage of the tools of the Excel program to create calculations by installments . We hope you can put all these resources into practice. And if you wish, do not forget to leave your comments.
