Calculated Industries 3420 User Guide - Manual (Page 54)

U SER ’ S G UIDE — 53
Solving for Actual Qualifying Ratios
A buyer who makes $60,000 per year and has $350 in long-term
monthly debt wants to borrow $100,000 to purchase a home. He has
$55,000 down payment and annual property tax is estimated at
1.4%. Monthly housing expenses are estimated at $150. Use 7.5%
interest for 25 years. What are his actual ratios? What is the price of
the home he can afford? What is the monthly payment?
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter Interest 7 • 5 ˆ 7.50
Enter Term 2 5 T 25.00
Enter Mortgage Amount 1 0 0 ) l 100,000.00
Enter annual Income 6 0 ) i 60,000.00
Enter monthly Debt 3 5 0 D 350.00
Enter Down Payment 5 5 ) d 55,000.00
Enter property Tax rate 1 • 4 t 1.40
Enter mo. housing Expense 1 5 0 e 150.00
Display stored Ratios q 32.00-40.00
Calculate actual Ratios q “run” 21.25-28.25
Find sales Price P 155,000.00
Find P&I Payment p 731.55
Find total/PITH Payment p p 1,062.39
3420UG-E-A 7/2/04 9:06 AM Page 53