58 Buyer Qualification
Press
#
,
until the BGN indicator disappears.
Steps
Keystrokes
Display
Clear TVM values.
#
-
0.00
Enter income percent.
28
#
m
IN% =
28.00
Enter debt percent.
36
#
d
DB%=
36.00
Enter tax percent.
1.5
#
Z
TX%=
1.50
Enter insurance
percent.
.5
#
Q
IS%= 0.50
Enter term.
30
0
TRM=
30.00
Enter interest rate.
8
1
I% =
8.00
Start qualification.
>
PRC=
0.00
Enter price.
125
q
j
PRC= 125,000.00
DN%=
0.00
Enter down payment
percent (0 to 99).
10
j
DN%=
10.00
DBT=
0.00
Enter a zero for
monthly debt amount,
and compute
qualifying loan
amount.
0
j
DBT=
0.00
LN = 112,500.00
Compute payment.
j
PMT=
-
825.49
Compute PITI and
store the result.
j T g
PITI =
-
1,033.82
Compute qualifying
income.
j
QI
= 3,692.21
Multiply by debt
ratio.
O
]
#
d
A
j
1,329.20
Calculate maximum
debt.
a
]
g
j
295.38
Finding the Maximum Allowable Debt
Assuming a sales price of $125,000, 10% down payment,
8% annual fixed rate, 30-year term, and an income/debt
ratio of 28/36, determine the maximum debt a buyer can
have and still qualify for the loan. Also assume that the
annual tax rate is 1.5% and the annual insurance rate is
0.5%
Solution
