Calculated Industries 3416 User Guide - Manual (Page 61)

56 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
“Restricted” Qualifying
Buyers who make $68,000 annually and have $750 in long-term
monthly debt wish to buy a home offered at $175,000. They can only
afford $5,000 for the down payment. For what maximum loan
amount can they qualify?
(Use previously stored 7.5% interest, 30-
year term, Tax/Ins./Mtg. Ins. rates of 1.5%, .25% and 0.6%, respec-
tively, and qualifying ratios of 28%:36%. Re-enter 0.6% mortgage
insurance rate, $50 assn. dues and $5,000 down. Note: If these val-
ues aren’t stored, you’ll need to re-enter them.)
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Recall interest* ® ˆ 7.50
Recall term* ® T 30.00
Recall annual prop. tax %* ® t 1.50
Recall annual prop. ins. %* ® I 0.25
Re-enter annual MI rate • 6 s I 0.60
Enter homeowner’s dues 5 0 e 50.00
Enter down payment 5 ) d 5,000.00
Enter annual income 6 8 ) i 68,000.00
Enter monthly debt 7 5 0 D 750.00
Display qualifying ratios q 28.00-36.00
Find “restricted” qualifying
loan amount q “run” 137,725.41
— DO NOT CLEAR CALCULATOR —
*Note: If you’re not continuing from the previous problem, you’ll need to re-enter inter-
est, term, and in this case, property tax and insurance.
“Unrestricted” Qualifying
The amount calculated in the previous example is the loan they may
qualify for, based on current income and debt and the standard
28%-36% qualifying ratios. What are the buyer's actual income and
debt ratios? What does the “unrestricted” loan amount calculate to,
and which side is it based on (i.e., buyer's income or debt)? What is
the buyer’s maximum allowable debt?
STEPS KEYSTROKES DISPLAY
Find actual ratios q “run” 22.76-36.00
Find “unrestricted”
loan amount q UNR 170,870.75 LA INC*
Find allowable debt q 453.33**
*Note: The “INC” tells you this unrestricted Qualifying Loan Amount is based on the
buyer’s Income Ratio — therefore, the restricted Qualifying Loan Amount is based on
the buyer’s Debt Ratio. This means that if they pay off their monthly debt to $453/mo.
or lower (as seen in “allowable debt” calculation**), they may qualify for a mortgage
of approx. $170,000 or more and that $175,000 home (putting approx. $4-$5K down).