Manual

U SER ’ S G UIDE — 55
Qualifying Loan Amount and Sales Price (Complete
Example Including Down Payment, Tax/Insurance,
Monthly Association Dues)
The same buyers as in the previous example (who make $75,000
annually and have $500 in long-term monthly debt) wish to buy a
lower-priced home and can only put $5,000 down. If you include
estimated annual property taxes and insurance of 1.5% and 0.25%,
respectively, a mortgage insurance rate of 0.6% and monthly home-
owner’s association dues of $50, for what loan amount can they now
qualify? What sales price can they afford? What’s their total pay-
ment? (Again, using previously stored 7.5% interest, 30-year term
and qualifying ratios of 28%:36%; if you’ve cleared or changed these
values, please re-enter them.)
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter annual income 7 5 ) i 75,000.00
Enter monthly debt 5 0 0 D 500.00
Enter down payment 5 ) d 5,000.00
Set annual prop. tax rate 1 • 5 s 7 1.50
Set annual prop. ins. rate • 2 5 s 8 0.25
Set annual mortg. ins. rate • 6 s 9 0.60
Enter homeowner’s dues* 5 0 s D 50.00
Recall interest ® ˆ 7.50
Recall term ® T 30.00
Display qualifying ratios q 28.00-36.00
Find qualifying loan amount q “run” 189,119.31
Find price P 194,119.31
— DO NOT CLEAR CALCULATOR —
Now find the monthly P&I payment, PITI payment, total payment,
and interest-only payment:
STEPS KEYSTROKES DISPLAY
Find P&I payment p “run” 1,322.35
Find PITI payment p 1,700.00
Find total payment p 1,750.00
Find interest-only payment p 1,182.00
Note: Press s before pressing q in these examples for Interest-Only qualifying.
For Desktop Model (#43442) Users:
*Enter 5 0 A on the Desktop model.