60 Buyer Qualification
Press
#
,
until the BGN indicator disappears.
Steps
Keystrokes
Display
Clear TVM values.
#
-
0.00
Enter sales price.
105
q
@
PRC= 105,000.00
Enter tax percent.
1.5
#
Z
TX%=
1.50
Enter insurance
percent.
.35
#
Q
IS% =
0.35
Enter term in years.
30
0
TRM=
30.00
Enter interest rate.
8
1
I% =
8.00
Enter loan amount.
84
q
2
LN =
84,000.00
Compute monthly
payment.
$
3
PMT=
-
616.36
Recall loan amount.
]
2
LN =
84,000.00
Multiply by interest
rate to find
approximate annual
interest amount.
O
]
1
A
j
T
g
MEM=
6,720.00
Add annual tax
amount.
]
@ O
]
#
Z A
a
]
g
j
8,295.00
Multiply by
income-tax rate.
O
28
A
0.28
Calculate annual
savings.
j
2,322.60
Divide by 12 to find
monthly savings and
store the result.
B
12
j
T
g
MEM=
193.55
Compute PITI.
$
&
PITI=
-
778.24
Subtract monthly tax
savings.
X
]
g
t
-
193.55
Calculate monthly
cost of housing.
j
-
584.69
Finding the Net Cost of Housing
A couple is considering an $84,000 mortgage to purchase
a $105,000 home. What would their net cost of housing be
if they were in the 28% tax bracket? Use a standard
30-year note and 8% interest for your example. Assume
property tax and insurance rates are 1.5 and .35
respectively.
Solution
