Calculated Industries 3420 User Guide - Manual (Page 49)

48 — Q UALIFIER P LUS ® III X
Qualifying Mortgage Amount and Sales Price (Including Down
Payment, Property Tax and Monthly Heating/Condo Fees)
The same buyers as in the previous example (who make $45,000
annually and have $200 in long-term monthly debt) wish to buy a
lower-priced condo, but can only afford $7,500 down. If you include
estimated annual property tax of 1.5% and other housing expenses
of $150 ($100 for heating, $50 for monthly condo fees), for what
mortgage amount can they now pre-qualify? What sales price can
they afford? What’s their PITH or total payment?
(Again, using previ-
ously stored 7.5% interest, 25-year term and qualifying ratios of
32%:40%; if you’ve cleared or changed these values, please re-
enter them.)
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter annual Income 4 5 ) i 45,000.00
Enter monthly Debt 2 0 0 D 200.00
Enter Down Payment 7 5 0 0 d 7,500.00
Set annual prop. Tax rate 1 • 5 t 1.50
Enter housing Expense 1 5 0 e 150.00
Recall Interest* ® ˆ 7.50
Recall Term* ® T 25.00
Display Qualifying Ratios q 32.00-40.00
Find pre-qualifying
Mortgage Amount q “run” 121,489.58
Find Price P 128,989.58
— DO NOT CLEAR CALCULATOR —
Now find the monthly P&I payment (Principal & Interest), PITI pay-
ment (Principal, Interest, and Property Tax) and PITH/Total Payment
(PITI plus monthly heating and condo fees):
STEPS KEYSTROKES DISPLAY
Find P&I Payment p “run” 888.76
Find PITI Payment** p 1,050.00
Find PITH/total Payment p 1,200.00
*Re-enter interest and term if you are not continuing from the previous example.
**Adds monthly property tax to the monthly payment. Insurance is not included for
Canadian payment calculations.
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