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— 43
Finding Qualifying Mortgage Amount and Sales Price
(Simple Example Excluding Property Tax)
Given an interest rate of 7.5%, a term of 25 years, and the stored
32%:40% qualifying ratios, what size mortgage and what sales price
can a buyer pre-qualify for, if he or she makes $45,000 annually and
has $350 in long-term, monthly debt? The buyer plans to put
$10,000 down. Also, what is the monthly (P&I) payment?
(Based on
no Tax.)
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter Term in years
2 5 T
25.00
Enter annual Interest rate
7 • 5 ˆ
7.50
Clear Tax rate*
0 t
0.00
Enter annual Income
4 5 ) i
45,000.00
Enter monthly Debt
3 5 0 D
350.00
Enter Down Payment
1 0 ) d
10,000.00
Display Qualifying Ratios
q
32.00-40.00
Find pre-qualifying
Mortgage Amount
q
“run” 157,199.41
Find Price
P
167,199.41
Find monthly P&I Payment
p
1,150.00
*Note: If you previously entered Property Tax, you must set this key to zero, as your
calculator automatically stores the % rates semi-permanently (unless you set them to
clear upon
o o
via the Preference Settings – see page 12).
— DO NOT CLEAR CALCULATOR —
Re-qualify this buyer assuming lower debt ($200/mo).
(Notice they
now qualify for a larger mortgage and sales price.)
STEPS
KEYSTROKES
DISPLAY
Enter new monthly Debt
2 0 0 D
200.00
Display Qualifying Ratios
q
32.00-40.00
Find new pre-qualifying
Mortgage Amount
q
“run” 164,034.17
Find new Price
P
174,034.17
Find monthly P&I Payment
p
1,200.00
