66 — Q
UALIFIER
P
LUS
®
III
FX
Solving for Actual Qualifying Ratios
A buyer who makes $120,000 annually and has $550 in long-term
monthly debt wants to borrow $275,000 to purchase a home. He has
$68,750 for the down payment and the property tax/insurance rates
are estimated at 1.4% and 0.2%, respectively; monthly homeowner’s
association dues are $65. Use 6.5% interest for 30 years. What are
his actual ratios? What is the price of the home he can afford? What
is the monthly payment?
STEPS
KEYSTROKES
DISPLAY
Clear calculator
o o
0.00
Enter annual Interest rate
6 • 5 ˆ
6.50
Enter Term in years
3 0 T
30.00
Enter Loan Amount
2 7 5 ) l
275,000.00
Enter Down Payment
6 8 7 5 0 d
68,750.00
Enter annual Income
1 2 0 ) i
120,000.00
Enter monthly Debt
5 5 0 D
550.00
Enter property tax rate
1 • 4 s 7
1.40
Enter property insurance rate
• 2 s 8
0.20
Clear mortgage insurance
rate*
0 s 9
0.00
Enter monthly association
dues
6 5 e
65.00
Display stored Qual Ratios
q
28.00-36.00
Calculate actual Ratios
q
“run” 22.62-28.12
Find sales Price
P
343,750.00
Find the monthly P&I
Payment
p
1,738.19
Find the monthly PITI
Payment
p
2,196.52
Find the total monthly
Payment
p
2,261.52
*Should be set to zero in this case, as the down payment is 20%; to check down pay-
ment %, press
d
again and it will read 20.00%.
