accelerated biweekly amort sched on ti ba II plus???

[mtgobsessed]

Hi,

I have recently learned how to calculate amortization schedules on my ti ba II plus. I can do monthly, bi weekly and weekly without a problem. however, i wish to calculate the accelerated biweekly amortization schedule whereby the standard monthly pmt is halved and paid 26 times...this results in an extra pmt per year and ends up saving lots of time vs a traditional biweekly or monthly mtg. Now i just don't know how to tell my calculator how to break it down by p and i (amortization schedule) i can do it on excel but would like to learn on my calculator too...can anyone help???

Thanks!
oh by the way I am using the following example: 200,000 principal mtg amt, 5% apr compounding semi-annually, 30 year amortization traditional monthly pmt works out to be $1067.381358 (c/y set to 2, p/y set to 12, n=360, i/y=5, pv=200000, fv=0 ) cpt pmt=$1067.381358

 

[Denis]

oh by the way I am using the following example: 200,000 principal mtg amt, 5% apr compounding semi-annually, 30 year amortization traditional monthly pmt works out to be $1067.381358 (c/y set to 2, p/y set to 12, n=360, i/y=5, pv=200000, fv=0 ) cpt pmt=$1067.381358

1067.38 is correct; total repaid = 1067.38 * 360 = 384256.80 ***

Now for the biweekly results; payment = 1067.38 / 2 = 533.69
We already know i = .00190123 (from your other 2 posts) ; and pv = 200000.
So you have enough to calculate n using your formula; you should get 656.242...
656.242 / 26 = approx 25 1/4 years : a reduction of 4 3/4 years.
Total repaid = 533.69 * 656.242... = 350230.19 ***

*** is the interest saved the difference of these 2 amounts?
I'll let TK answer that!
Remember that by speeding up the payments, you're leaving yourself with
1067.38 less each year to pay other stuff: what if you need to borrow because
of this, and borrowing rate is 12%........ :shock:

Personally, at a rate as low as 5%, I'd take a 100year closed mortgage if it was possible!