P
OCKET
R
EFERENCE
G
UIDE
— 24
(Cont’d)
**The restricted Qualifying Mortgage Amount is
based on the ratio (income or debt) that limits the
buyer the most — in this case it was debt. This
means that if the buyer lowers their debt below
the maximum allowable of $300 a month, they
would qualify for the larger “unrestricted” mort-
gage amount.
Qualifying Comparison
(Two Ratios at Once)
• Buyer’s Income:
$50,000
• Monthly Debt:
$125
• Property Tax:
1.25%
• Monthly heating cost
and condo fees:
$120
• Down Payment:
10%
• Term:
25 years
• Interest:
7.25%
Qualify this buyer based on both stored
32%:40% and 35%:42% ratios:
STEPS
KEYSTROKES
DISPLAY
Clear
o o
0.00
Enter Income
5 0 ) i
50,000.00
Enter Debt
1 2 5 D
125.00
Enter Tax%
1 • 2 5 t
1.25
Enter monthly
Expenses
1 2 0 s D
120.00
Enter %Down
1 0 d
10.00
Enter Term
2 5 T
25.00
Enter Interest
7 • 2 5 ˆ
7.25
