Calculated Industries 3430 User Guide - Manual (Page 62)

U
SER
’
S
G
UIDE
— 61
Qualifying Loan Amount and Sales Price (Complete Example
Including Down Payment, Tax/Insurance, Monthly Association
Dues)
The same buyers as in the previous example (who make $75,000
annually and have $500 in long-term monthly debt) wish to buy a
lower-priced home and can only put $5,000 down. If you include
estimated annual property taxes and insurance of 1.5% and 0.25%,
respectively, a mortgage insurance rate of 0.6% and monthly home-
owner’s association dues of $50, for what loan amount can they now
qualify? What sales price can they afford? What’s their total payment?
(Again, use the previously stored 7.5% interest, 30-year term, and
qualifying ratios of 28%:36%; if you’ve cleared or changed these
values, please re-enter them.)
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter annual Income 7 5 ) i 75,000.00
Enter monthly Debt 5 0 0 D 500.00
Enter Down Payment 5 ) d 5,000.00
Enter property tax rate 1 • 5 s 7 1.50
Enter property insurance rate • 2 5 s 8 0.25
Enter mortgage insurance
rate • 6 s 9 0.60
Enter monthly association
dues 5 0 e 50.00
Recall annual Interest rate* ® ˆ 7.50
Recall Term* in years ® T 30.00
Display Qualifying Ratios q 28.00-36.00
Find Qualifying Loan Amount q “run” 189,119.31
Find Price P 194,119.31
— DO NOT CLEAR CALCULATOR —
Now find the monthly P&I payment, PITI payment, total payment,
and interest-only payment:
STEPS KEYSTROKES DISPLAY
Find monthly P&I Payment p “run” 1,322.35
Find monthly PITI Payment p 1,700.00
Find total monthly Payment p 1,750.00
Find monthly interest-only
Payment p 1,182.00
*If you’re not continuing from the previous problem, you’ll need to re-enter interest
and term.