54 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
Finding Qualifying Loan Amount and Sales Price (Simple
Example Excluding Tax/Insurance)
Given an interest rate of 7.5%, a term of 30 years, and the stored
q
28%:36% qualifying ratios, for what size loan and what sales
price can a buyer qualify for if he or she makes $75,000 annually
and has $500 in long-term monthly debt? The buyer plans to put
$35,000 down. Also, what is the monthly (P&I) payment?
(Based on
no Tax and Insurance*)
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter term in years
3 0 T
30.00
Enter annual interest
7 • 5 ˆ
7.50
Clear tax rate*
0 t
0.00
Clear insurance rate*
0 I
0.00
Clear mortgage insurance
rate*
0 s I
0.00
Enter annual income
7 5 ) i
75,000.00
Enter monthly debt
5 0 0 D
500.00
Enter down payment
3 5 ) d
35,000.00
Display qualifying ratios
q
28.00-36.00
Find qualifying loan amount
q
“run” 250,280.85
Find price
P
285,280.85
Find monthly P&I payment
p
1,750.00
*Note: Tax and Insurance will need to be cleared if you’re continuing from a previous
example where rates were stored.
— DO NOT CLEAR CALCULATOR —
Re-qualify this buyer assuming $200 per month in additional debt.
STEPS
KEYSTROKES
DISPLAY
Enter new monthly debt
7 0 0 D
700.00
Display qualifying ratios
q
28.00-36.00
Find lower qualifying loan
amount
q
“run” 221,677.32
Find lower price
P
256,677.32
Find monthly P&I payment
p
1,550.00
