56 — Q
UALIFIER
P
LUS
®
III
X
Qualifying Loan Amount and Sales Price (Complete Example
Including Down Payment, Tax/Insurance, Monthly Association
Dues)
The same buyers as in the previous example (who make $75,000
annually and have $500 in long-term monthly debt) wish to buy a
lower-priced home and can only put $5,000 down. If you include
estimated annual property taxes and insurance of 1.5% and 0.25%,
respectively, a mortgage insurance rate of 0.6% and monthly home-
owner’s association dues of $50, for what loan amount can they now
qualify? What sales price can they afford? What’s their total pay-
ment?
(Again, use the previously stored 7.5% interest, 30-year term,
and qualifying ratios of 28%:36%; if you’ve cleared or changed these
values, please re-enter them.)
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter annual income
7 5 ) i
75,000.00
Enter monthly debt
5 0 0 D
500.00
Enter down payment
5 ) d
5,000.00
Set annual property tax rate
1 • 5 t
1.50
Set annual property insurance
rate
• 2 5 I
0.25
Set annual mortgage insurance
rate
• 6 s I
0.60
Enter homeowner’s dues
5 0 e
50.00
Recall interest*
® ˆ
7.50
Recall term*
® T
30.00
Display qualifying ratios
q
28.00-36.00
Find qualifying loan amount
q
“run” 189,119.31
Find price
P
194,119.31
— DO NOT CLEAR CALCULATOR —
Now find the monthly P&I payment, PITI payment, total payment,
and interest-only payment:
STEPS
KEYSTROKES
DISPLAY
Find P&I payment
p
“run” 1,322.35
Find PITI payment
p
1,700.00
Find total payment
p
1,750.00
Find interest-only
payment
p
1,182.00
*If you’re not continuing from the previous problem, you’ll need to re-enter interest
and term.
