Calculated Industries 3416 User Guide - Manual (Page 60)

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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 pay-
ment?
(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
Set annual property tax rate 1 • 5 t 1.50
Set annual property insurance
rate • 2 5 I 0.25
Set annual mortgage insurance
rate • 6 s I 0.60
Enter homeowner’s dues 5 0 e 50.00
Recall interest* ® ˆ 7.50
Recall term* ® 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 P&I payment p “run” 1,322.35
Find PITI payment p 1,700.00
Find total payment p 1,750.00
Find 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.