Calculated Industries 3420 User Guide - Manual (Page 73)

72 — Q UALIFIER P LUS ® III X
Finding Income Required and Allowable Monthly Debt
Using the 28%:36% ratios, how much income would a buyer need to
finance a $250,000 home, if they put 20% down? What is the maxi-
mum allowable debt? What is the dollar down payment and loan
amount? What is the monthly payment? Use 7.5% interest for 30
years. Estimate property Tax/Insurance rates of 1.5% and .25%,
respectively. Clear mortgage insurance rate to zero, as they are put-
ting 20% down.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter annual Interest 7 • 5 ˆ 7.50
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 Ins. rate 0 Â 0.00
Enter sales Price 2 5 0 ) P 250,000.00
Enter Down Payment % 2 0 d 20.00
Find 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” 75,557.67
Find maximum allowable
monthly Debt q “run” 503.72
Find P&I Payment p 1,398.43
Find PITI Payment p 1,763.01
*If you are not continuing from the previous example, you’ll need to re-enter the quali-
fying ratios (enter
2 8 : 3 6 q ).
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