Manual

32 — M

ORTGAGE

UALIFIER

LUS

(Cont’d)

STEPS KEYSTROKES DISPLAY

Enter interest 8 ˆ 8.00

Find loan amount l 225,000.00

Recall property tax % ® 7 1.50

Calculate property tax $ ® 7 3,750.00

Recall property ins. % ® 8 0.25

Calculate property ins. $ ® 8 625.00

Recall mortgage ins. % ® 9 0.50

Calculate mortgage ins. $ ® 9 1,125.00

Find P&I payment p 1,650.97

Find PITI payment p 2,109.30

Note: The same procedure can be performed to find the opposite — that is, to find

the % rates based on entered annual dollar amounts or insurance premiums. Simply

enter the tax/insurance dollar amounts and loan variables first, and press

and the

tax/insurance key to calculate the percentage rate.

PITI Payment (Tax and Insurance Entered as %)

Find the PITI payment on a 30-year, 6.5% mortgage if the home’s

selling price is $125,000 and the down payment is 5%. Annual prop-

erty taxes are estimated at 1.3%, annual property insurance at

0.25%, and annual mortgage insurance at 0.45%.

STEPS KEYSTROKES DISPLAY

Clear calculator o o 0.00

Enter term in years 3 0 T 30.00

Enter annual interest 6 • 5 ˆ 6.50

Enter sales price 1 2 5 ) P 125,000.00

Enter down payment 5 d 5.00

Set tax rate 1 • 3 s 7 1.30

Set property insurance rate • 2 5 s 8 0.25

Set mortgage ins. rate • 4 5 s 9 0.45

Find loan amount l 118,750.00

Find P&I payment p “run” 750.58

Find PITI payment p 956.57