When two mortgages at different interest rates exist on a piece of property, it may be desirable to find the interest rate on the entire transaction or the blended interest rate. To calculate the blended rate, it is necessary to know the amount and term of each mortgage, and either the interest rate of each mortgage, or the periodic payment amount.
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HP 17Bii, 17Bii+, and 19Bii Calculators  Calculating a Blended Interest Rate
Calculating the blended interest rate
To calculate the blended interest rate with two mortgages:

Enter the BLEND equation into the Solver as follows:BLEND:IF(S(PMT1):PV1PMT1xUSPV(%I1÷12:N1):IF(S(PMT2):PV2PMT2xUSPV(%I2÷12:N2):PV1+PV2PMT1xUSPV(%BL÷12:N1)PMT2xUSPV(%BL÷12:N2)))

Verify the equation:

For the HP 17bii and 17bii+, press EXIT, EXIT, YES (to save), then CALC.

For the HP 19bii, press CALC.


Store the following variables from the first loan:

Amount of first loan in PV1

Total monthly payment in N1

Annual interest rate (as a percentage) in %I1


Press PMT1 to calculate the first loan's monthly payment.

Store the following variables from the second loan:

Amount of second loan in PV2

Number of monthly payments in N2

Annual interest rate (as a percentage) in %I2


Press PMT2 to calculate the second loan's monthly payment (If PMT2 is already known, just store it).

Press %BL to calculate the blended interest rate.
Example of calculating the blended interest rate
A buyer purchases a home with a 30year, 10.25 percent, $65,000 mortgage. The seller has agreed to carry a 12 percent, $15,000 second mortgage for 7 years. What is the blended rate of the two mortgages?
Keys

Display

Description

Press 65000, then PV1

PV1=65,000.00

Enter the first payment value

Press 360, then N1

N1=360.00

Enter the number of payments for the first loan

Press 10, [.], 2, 5, then %I1

%I1=10.25

Enter the interest rate of the first loan

Press PMT1

PMT1=582.47

Calculates the amount of the first payment

Press 15000, the PV2

PV2=15,000.00

Enter the second payment value

Press MORE


More variables

Press 84, then N2

N2=84.00

Enter the number of payments for the second loan

Press 12, then %I2

%I2=12.00

Enter the interest rate of the second loan

Press PMT2

PMT2=264.79

Calculate the amount of the second payment

Press %BL

%BL=10.39

Calculate the blended interest rate

note:
The solver searches for an iterative solution and displays intermediate estimates.
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