Calculated Industries 3442 - Manual (Page 35)

30 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
P X2
Taxes and Insurance
This calculator has keys that store your estimated local annual
Property Tax, Property Insurance, and Mortgage Insurance (if appli-
cable). This allows you to calculate the PITI (Principal, Interest, Tax,
and Insurance) payment, in addition to the regular P&I payment. You
may also enter monthly expenses, such as homeowner’s association
dues—these are included in the calculation of the total payment
(PITI plus expenses).
By default, the Property Tax and Insurance values are cleared when
the calculator is shut off, while the Mortgage Insurance value clears
when you press
o twice. However, you can use the Preference
Settings ( s = ) to permanently store, or hold Tax and Insurance
(% and $) values when the calculator is turned off.
Note: There’s a separate Preference Setting for Mortgage Insurance.
Tax and insurance can be entered as dollar amounts or percentages.
If entered as percentages, the Sales Price or Loan Amount can be
changed and tax and insurance will be recalculated automatically. If
entered as dollar amounts, however, they will need to be re-entered
for a change in Sales Price or Loan Amount to be correct. Entering
values less than 10 are assumed to be annual percentage rates.
IMPORTANT: Property Tax and Property Insurance rates are
based on the Sales Price* (therefore, a Down Payment or Sales
Price should be entered). The Mortgage Insurance rate is based
on the Loan Amount. If neither Sales Price nor Down Payment
has been entered, the Sales Price is defaulted to equal the Loan
Amount (basically assuming a 100% loan), in which case the
Tax and Insurance rates will be based on the Loan Amount
value entered.
*Property insurance can be based on the Loan Amount by changing the Preference
Settings.
Note: If you are underwriting a loan, many lenders choose to use loan amount
instead of price when figuring out Hazard Insurance. In this case, you will need to
turn your Hazard Insurance into a dollar amount: Loan Amount x Hazard Insurance
Rate = Hazard Insurance dollar amount. By entering a lower amount into Insurance,
it will improve the buying power of your client. However, the client will only be cov-
ered for the loan amount and not the complete value of the home.
Setting Tax and Insurance % Rates
Enter an annual property tax rate of 1.5%, a property insurance rate
of 0.25% and a mortgage insurance rate of 0.50%:
STEPS KEYSTROKES DISPLAY
Set property tax rate 1 • 5 s 7 1.50
Set insurance rate • 2 5 s 8 0.25
Set mortgage ins. rate • 5 s 9 0.50