Calculated Industries 3416 User Guide - Manual (Page 64)

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Finding Income Required and Allowable Monthly Debt
Using the stored q 28%:36% ratios, how much income would a
buyer need to finance a $250,000 home if they put 20% down?
What is the maximum allowable debt? What is the dollar down pay-
ment and loan amount? What is the monthly payment? Use 6.75%
interest for 30 years. Estimate property tax/insurance rates of 1.5%
and 0.25%, respectively. Clear mortgage insurance rate to zero, as
they are putting 20% down.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter annual interest 6 • 7 5 ˆ 6.75
Enter term in years 3 0 T 30.00
Enter tax rate 1 • 5 t 1.50
Enter insurance rate • 2 5 I 0.25
Delete mortgage
insurance rate 0 s I 0.00
Enter sales price 2 5 0 ) P 250,000.00
Enter down payment % 2 0 d 20.00
Find dollar down payment d 50,000.00
Find loan amount l 200,000.00
Display qualifying ratios q 28.00-36.00
Find income required q “run” 71,219.12*
Find maximum allowable
monthly debt q “run” 474.79
Find P&I payment p 1,297.20
Find PITI payment p 1,661.78
*Many banks have a specified seasoned assets period for low-doc or stated income
programs. For example, if the borrower needed 6-months of seasoned assets
(reserves), you would divide the annual income by two for reserves of $35,609.56.