18 Mortgages and Amortization
BEAR-CH1.DOC BA Real Estate Guidebook Jackie Quiram Revised: 09/28/99 1:16 PM Printed: 09/28/99 1:16 PM
Page 18 of 36
Be sure that you have entered the income/debt ratios
before calculating any buyer qualifications.
1. Enter the income percent used by lenders in your area
for the most commonly used mortgages. For example,
if the qualifying ratio is 28/36, enter 28 for the income
percent.
2. Press
#
m
.
3. Enter the debt rate used by lenders in your area. For
example, if the qualifying ratio is 28/36, enter 36 for the
debt percent.
4. Press
#
d
.
These settings are useful for finding the general range of
total PITI payments. Later, when you know the tax and
insurance amounts for a specific property, you can
override these settings.
1. Press
!
to turn the calculator on.
2. Enter the property-tax rate as an annual rate. For
example, enter 1.5 for 1.5%.
3. Press
#
Z
.
4. Enter the insurance rate as an annual rate. For
example, enter .5 for .5%.
5. Press
#
Q
.
Entering an annual tax and insurance dollar amount with
the
#
E
key sequence overrides these settings.
For example, if you enter
1825
#
E
, the
calculator uses this value instead of the rates entered as
TAX% and INS%.
Setting Default Rates for Your Area
The calculator permanently stores the income/debt ratios
and local tax and insurance rates you enter. These
settings are used as defaults in your buyer-qualification
and PITI calculations.
Setting the
Qualifying
Ratios
Setting Tax
and Insurance
Rates
