User Manual

60 Buyer Qualification
Press # , until the BGN indicator disappears.
Steps Keystrokes Display
Clear TVM values.
# - 0.00
Enter sales price.
105 q @ PRC= 105,000.00
Enter tax percent.
1.5 # Z TX%= 1.50
Enter insurance
percent.
.35 # Q IS% = 0.35
Enter term in years.
30 0 TRM= 30.00
Enter interest rate.
8 1 I% = 8.00
Enter loan amount.
84 q 2 LN = 84,000.00
Compute monthly
payment.
$ 3 PMT=
-
616.36
Recall loan amount.
] 2 LN = 84,000.00
Multiply by interest
rate to find
approximate annual
interest amount.
O ] 1 A j
T g MEM= 6,720.00
A
dd annual tax
amount.
] @ O ]
# Z A a
] g j 8,295.00
Multiply by
income-tax rate.
O 28 A 0.28
Calculate annual
savings.
j 2,322.60
Divide by 12 to find
monthly savings and
store the result.
B 12 j T g MEM= 193.55
Compute PITI.
$ & PITI=
-
778.24
Subtract monthly tax
savings.
X ] g t
-
193.55
Calculate monthly
cost of housing.
j
-
584.69
Finding the Net Cost of Housing
A couple is considering an $84,000 mortgage to purchase
a $105,000 home. What would their net cost of housing be
if they were in the 28% tax bracket? Use a standard
30-year note and 8% interest for your example. Assume
property tax and insurance rates are 1.5 and .35
respectively.
Solution