User Manual

12 Getting Started
BEAR-CH0.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:17 PM Printed: 09/28/99 1:20 PM
Page 12 of 10
1. Clear any previous TVM values.
Press
# -
.
0.00
2. Enter income percent.
Press 28
# m
.
IN% = 28.00
3. Enter debt percent.
Press 36
# d
.
DB%= 36.00
4. Enter the property-tax rate.
Press 1.5
# Z
.
TX%= 1.50
5. Enter the annual insurance rate.
Press .5
# Q
.
IS% = 0.50
6. Enter the term of the loan.
Press 30
0
.
TRM= 30.00
7. Enter the interest rate.
Press 7.5
1
.
I% = 7.50
8. Start the qualification.
Press
?
.
INC=
9. Enter monthly income amount.
Press 6200
j
.
INC= 6,200.00
DBT=
Qualifying a Buyer for a Loan
You have a buyer who has a total income of $6,200 per
month, with monthly debts of $580. Assuming a 20% down
payment at 7.5% annual interest for 30 years, a tax rate of
1.5%, an insurance rate of .5%, and an income/debt ratio
of 28/36, what is the maximum sales price this buyer can
consider?