Calculated Industries 3423 - Manual (Page 55)

50 — Q
UALIFIER
P
LUS
® 4
X
Solving for Actual Qualifying Ratios
A buyer who makes $60,000 per year and has $350 in long-term
monthly debt wants to borrow $100,000 to purchase a home. He has
$25,000 down payment and annual property tax is estimated at
1.4%. Monthly housing expenses are estimated at $150. Use 7.5%
interest for 25 years. What are his actual ratios? What is the price of
the home he can afford? What is the monthly payment?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Interest rate 7 • 5 ˆ 7.50
Enter Term in years 2 5 T 25.00
Enter Mortgage Amount 1 0 0 ) l 100,000.00
Enter annual Income 6 0 ) i 60,000.00
Enter monthly Debt 3 5 0 D 350.00
Enter Down Payment 2 5 ) d 25,000.00
Find LTV d d 80.00
Enter property Tax rate 1 • 4 t 1.40
Enter mo. housing Expense 1 5 0 s D 150.00
Display stored Ratios q 32.00-40.00
Calculate actual Ratios q “run” 20.55-27.55
Find sales Price P 125,000.00
Find P&I Payment p 731.55
Find Total Payment p 1,027.39
— DO NOT CLEAR CALCULATOR —
The Canadian Mortgage Insurance for this mortgage is estimated at
1.00% based on an LTV of 80%. Find the actual ratios, Mortgage
Amount, income required, and monthly payment for a mortgage that
includes Canadian Mortgage Insurance.
STEPS KEYSTROKES DISPLAY
Enter Canadian Mortgage
Insurance 1 C 1.00
Display stored ratios q 32.00-40.00
Calculate actual ratios q 20.55-27.55
Find Mortgage Amount l 100,000.00
Find Mortgage Amount
(including Canadian
Mortgage Insurance
l 101,000.00
Find P&I Payment p 738.87
Find Total Payment (including Canadian
Mortgage Insurance) p 1,034.70