Calculated Industries 3423 - Manual (Page 54)

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— 49
Finding Income Required and Allowable Monthly Debt
Using the 32%:40% ratios, how much income would a buyer need to
finance a $180,000 home, if they put 35% down? What is the maximum
allowable debt? What is the dollar down payment and mortgage
amount? What is the monthly payment? Use 7.05% interest for 25 years.
Estimate property tax rate at 1.5% and $80 for monthly heating expense.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter annual Interest rate 7 • 0 5 ˆ 7.05
Enter Term in years 2 5 T 25.00
Enter Tax rate 1 • 5 t 1.50
Enter mo. heating Expense 8 0 s D 80.00
Enter sales Price 1 8 0 ) P 180,000.00
Enter Down Payment % 3 5 d 35.00
Find Down Payment $ d 63,000.00
Find LTV d 65.00
Find Mortgage Amount l 117,000.00
Display Qualifying Ratios q 32.00-40.00
Find Income required q “run” 42,303.80
Find maximum allowable
monthly Debt q “run” 282.03
Find P&I Payment p 823.10
Find Total Payment p “run” 1,128.10
— DO NOT CLEAR CALCULATOR —
The Canadian Mortgage Insurance for this mortgage is estimated at
0.50% based on an LTV of 65%. Find the Mortgage Amount, income
required, allowable debt, and monthly payment for a mortgage that
includes Canadian Mortgage Insurance.
STEPS KEYSTROKES DISPLAY
Enter Canadian Mortgage
Insurance • 5 C 0.50
Find Mortgage Amount l 117,000.00
Find Mortgage Amount
(including Canadian
Mortgage Insurance
l 117,585.00
Display Qualifying Ratios q 32.00-40.00
Find Income required q 42,458.14
Find maximum allowable
monthly Debt q 283.05
Find P&I Payment (including Canadian
Mortgage Insurance) p 827.22
Find Total Payment (including Canadian
Mortgage Insurance) p “run” 1,132.22