Owner manual

POCKET REFERENCE GUIDE — 24
(Cont’d)
**The restricted Qualifying Mortgage Amount is
based on the ratio (income or debt) that limits the
buyer the most — in this case it was debt. This
means that if the buyer lowers their debt below
the maximum allowable of $300 a month, they
would qualify for the larger “unrestricted” mort-
gage amount.
Qualifying Comparison
(Two Ratios at Once)
• Buyer’s Income: $50,000
• Monthly Debt: $125
• Property Tax: 1.25%
• Monthly heating cost
and condo fees: $120
• Down Payment: 10%
• Term: 25 years
• Interest: 7.25%
Qualify this buyer based on both stored
32%:40% and 35%:42% ratios:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter Income 5 0 ) i 50,000.00
Enter Debt 1 2 5 D 125.00
Enter Tax% 1 • 2 5 t 1.25
Enter monthly
Expenses 1 2 0 s D 120.00
Enter %Down 1 0 d 10.00
Enter Term 2 5 T 25.00
Enter Interest 7 • 2 5 ˆ 7.25