Manual

34 — M

ORTGAGE

UALIFIER

LUS

(Cont’d)

STEPS KEYSTROKES DISPLAY

Enter property insurance 5 0 0 s 8 500.00

Enter mortgage insurance 1 2 0 0 s 9 1,200.00

Enter monthly expenses 1 5 0 s D 150.00

Find loan amount l 280,500.00

Find P&I payment p “run” 1,681.74

Find PITI payment p 2,315.07

Find total payment (PITI

plus mo. expenses) p 2,465.07

Find interest-only payment p 1,402.50

Estimated Income Tax Savings and “After-Tax” Payment

Note: This example calculates the annual tax savings (including property tax and

mortgage interest) and is only an estimate. Please inform your clients to consult a tax

advisor for an accurate calculation of their income tax deductions.

Buyers in a 28% income tax bracket are looking to finance a

$150,000 mortgage for 30 years at 8% annual interest. If they will be

paying approximately $1,500 in annual property taxes and $250 in

annual property insurance, find their

estimated

annual tax savings

(or mortgage interest/property tax savings) and “after-tax” monthly pay-

ment.

STEPS KEYSTROKES DISPLAY

Clear calculator o o 0.00

Enter term in years 3 0 T 30.00

Enter annual interest 8 ˆ 8.00

Enter annual tax 1 5 0 0 s 7 1,500.00

Enter annual insurance 2 5 0 s 8 250.00

Enter loan amount 1 5 0 ) l 150,000.00

Find P&I payment p “run” 1,100.65

Find PITI payment p 1,246.48

Enter tax bracket 2 8 s p 28.00

Find annual income

tax savings p 3,767.32

Find monthly tax savings p 313.94

Find “after-tax” payment p 932.54

— DO NOT CLEAR CALCULATOR —