Calculated Industries 3423 - Manual (Page 70)

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— 65
Qualifying Loan Amount and Sales Price
(Complete Example Including Down Payment, Tax / Insurance,
Monthly Association Dues)
Buyers who make $75,000 annually and have $500 in long-term
monthly debt wish to buy a home but can only afford $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 homeowner’s association dues of $50, for what loan amount
can they qualify? What sales price can they afford? What’s their total
payment?
(Use 7.5% interest, 30-year term and qualifying ratios of
28%:36%).
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
Set annual prop. Tax rate 1 • 5 t 1.50
Set annual prop. Ins. rate • 2 5 s t 0.25
Set annual Mtg. Ins. rate • 6 s 9 0.60
Enter homeowner’s dues 5 0 s D 50.00
Enter Interest 7 • 5 ˆ 7.50
Enter Term 3 0 T 30.00
Enter Qualifying Ratios 2 8 : 3 6 q 28.00-36.00
Find Qualifying Loan Amt. q “run” 189,119.31
Find Price P 194,119.31
— DO NOT CLEAR CALCULATOR —
Now find the monthly P&I payment (principal & interest), PITI pay-
ment (principal, interest, tax and insurance) and Total Payment
(including monthly association dues):
STEPS KEYSTROKES DISPLAY
Find P&I Payment p “run” 1,322.35
Find PITI Payment p 1,700.00
Find total Payment p 1,750.00