U
SER
’
S
G
UIDE
— 33
(Cont’d)
STEPS
KEYSTROKES
DISPLAY
Find P&I payment
p
“run” 1,681.74
Find PITI payment
p
2,315.07
Find total payment (PITI plus
monthly expenses)
p
2,465.07
Find interest-only payment
p
1,402.50
Estimated Income Tax Savings and “After-Tax” Payment
Important Note: This example estimates the annual tax savings
(including property tax and mortgage interest). It is important to
inform your clients to consult a tax advisor for an accurate income
tax deduction computation for their particular tax situation.
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 mort-
gage interest/property tax savings) and “after-tax” monthly payment.
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 property tax
1 5 0 0 t
1,500.00
Enter annual property ins.
2 5 0 I
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 +
28.00
Find annual income
tax savings
s t t
3,767.32
Find monthly tax savings
t
313.94
Find “after-tax” payment
t
932.54
— DO NOT CLEAR CALCULATOR —
If the above loan starts in July, find the “after-tax” payment.
STEPS
KEYSTROKES
DISPLAY
Set Mo. 1 Offset to July
7 s )
7.00
Enter tax bracket
2 8 s +
28.00
Find annual tax savings
s t t
1,887.16
Find monthly tax savings
t
314.53
Find “after-tax” payment
t
931.95
Return Mo. Offset to Jan.
1 s )
1.00
