Calculated Industries 3423 - Manual (Page 46)

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• the last press will display the allowable monthly debt.
Note: You can set your Qualifying Ratios to display first or last via the
Preference Settings. See page 12.
5. When calculating Annual Income Required (based on entered
mortgage amount or sales price, term, interest and stored quali-
fying ratios), the first press of
q or Q will display your
stored ratios, the second press in succession will display the
Annual Income Required, and the third press in succession will
show the Allowable Monthly Debt.
6. When calculating buyer's Actual Ratios based on entered bor-
rower data (i.e., income and debt) and property data (e.g., mort-
gage amount, sales price), the first press of
q or Q will dis-
play the stored qualifying ratios, and the second press will calcu-
late the buyer's actual ratios.
7. You may use the s D (Exp) and t keys as additional
variables affecting buyer qualifying (and PITH payments).
Property tax is calculated from the Sales Price.
*The Maximum Qualifying Loan Amount displayed is the “restricted” loan amount that the
buyer may qualify for. This loan amount is based on whichever of the two ratios, income
or debt, limits the buyer the most. If the buyer’s maximum qualifying loan amount is
restricted by their debt, then the unrestricted qualifying loan amount will also be dis-
played. The unrestricted qualifying loan amount is based purely on the buyer’s income
and is not restricted by their debt. If the maximum qualifying loan amount is restricted by
their income, the unrestricted qualifying loan amount will not be displayed. This is useful
to show clients what size loan they could qualify for if they paid off debt. Here, the calcu-
lator will display the loan amount with “UNR” (for unrestricted) and “INC” to indicate that
it is based on income.
IMPORTANT NOTE: U.S. versus Canadian Payment and
Qualifying Calculations
It is important to note that U.S. and Canadian payment and pre-qualifying
methods differ and are thus reflected in the examples in this User’s
Guide. In the U.S., property insurance (“Insurance”) and mortgage insur-
ance* are included with property tax for the calculation of the “PITI” and
total payment, and are also included as factors affecting Buyer Qualifying.
In Canada, Mortgage Insurance is typically added to the Mortgage
Amount, affecting P&I and Total payments, Qualifying, and Amortization
Schedules.
*In the U.S., mortgage insurance only applies if buyers have a low down payment
(under 20%).