Calculated Industries 3420 User Guide - Manual (Page 46)

U SER ’ S G UIDE — 45
(Cont’d)
• the fourth press will display the higher, “unrestricted” qualify-
ing mortgage amount (for comparison purposes); and
• the last press will display the allowable monthly debt.
Note: You can set your Qualifying Ratios to display first or last via the
Preference Settings. See page 17.
5. When calculating Annual Income Required (based on entered
mortgage amount or sales price, Term, Interest and stored quali-
fying ratios), the first press of
q or Q will display your
stored ratios, the second press in succession will display the
Annual Income Required, and the third press in succession will
show the Allowable Monthly Debt.
6. When calculating buyer's Actual Ratios based on entered bor-
rower data (i.e., income and debt) and property data (i.e., mort-
gage amount, sales price), the first press of
q or Q will dis-
play the stored qualifying ratios, and the second press will calcu-
late the buyer's actual ratios.
7. You may use the e and t keys as additional variables
affecting buyer qualifying (and PITH payments). Property tax is
calculated from the Sales Price.
IMPORTANT NOTE: U.S. versus Canadian Payment and
Qualifying Calculations
It is important to note that U.S. and Canadian payment and pre-qual-
ifying methods differ and are thus reflected in the examples in this
User’s Guide. In the U.S., property insurance (“Insurance”) and
mortgage insurance* are included with property tax for the calcula-
tion of the “PITI” and total payment, and are also included as factors
affecting Buyer Qualifying. In Canada, Insurance is not included in
the calculation of PITH (i.e., PITH typically adds only the monthly
property tax and heating expense to the P&I payment. Canadian
Qualifying also does not include Insurance.
*In the U.S., mortgage insurance only applies if buyers have a low down payment
(under 20%).
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