68 — Q
UALIFIER
P
LUS
®
4
X
Finding Income Required and Allowable Monthly Debt
Using the 28%:36% ratios, how much income would a buyer need to
finance a $250,000 home, if they put 20% down? What is the maxi-
mum allowable debt? What is the dollar down payment and loan
amount? What is the monthly payment? Use 7.5% interest for 30
years. Estimate property Tax/Insurance rates of 1.5% and .25%,
respectively. Clear mortgage insurance rate to zero, as they are put-
ting 20% down.
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter annual Interest
7 • 5 ˆ
7.50
Enter Term in years
3 0 T
30.00
Enter Tax rate
1 • 5 t
1.50
Enter Insurance rate
• 2 5 s t
0.25
Delete Mortgage Ins. rate
0 s 9
0.00
Enter sales Price
2 5 0 ) P
250,000.00
Enter Down Payment %
2 0 d
20.00
Find Down Payment $
d
50,000.00
Find Loan Amount
l
200,000.00
Display Qualifying Ratios*
q
28.00-36.00
Find Income required
q
“run” 75,557.67
Find maximum allowable
monthly Debt
q
“run” 503.72
Find P&I Payment
p
1,398.43
Find PITI Payment
p
1,763.01
*If you are not continuing from the previous example, you’ll need to re-enter the quali-
fying ratios (enter
2 8 : 3 6 q
).
