56 Buyer Qualification
Steps
Keystrokes
Display
Clear TVM values.
#
-
0.00
Enter income percent.
28
#
m
IN% =
28.00
Enter debt percent.
36
#
d
DB%=
36.00
Add annual tax and
annual insurance to
calculate total tax
and insurance.*
3750
a
1250
j
# E
T&I=
5,000.00
Enter term of loan.
30
0
TRM=30.00
Enter interest rate.
8
1
I% =
8.00
Start qualification.
>
PRC=
0.00
Enter price.
250
q
j
PRC= 250,000.00
DN%=
0.00
Enter down payment
amount.
50
q
j
DN$=
50,000.00
DBT=
0.00
Enter a monthly debt
amount, and compute
qualifying loan
amount.
635
j
DBT=
635.00
LN = 200,000.00
Compute payment.
j
PMT=
-
1,467.53
Compute PITI.
j
PITI =
-
1,884.20
Compute qualifying
income.
j
QI
=
6,997.78
* The calculator uses the TAX&INS$ amount, ignoring the
TAX% and INS% settings. TAX% and INS% are used only
when TAX&INS$ is zero.
Finding the Minimum Income Required
A couple is interested in a home you are showing. The
asking price is $250,000. Last year’s taxes were $3,750 and
insurance was $1,250. The couple’s monthly debt is $635
and they are able to make a $50,000 down payment. If
they get a 30-year loan at 8%, determine if their combined
monthly income of $7,100 is enough for them to qualify.
Solution
