P
OCKET
R
EFERENCE
G
UIDE
— 20
Estimated Tax Savings
• Loan: $150,000
• Buyer’s tax bracket: 28%
• Term: 30 years
• Interest: 8%
• Property taxes: $1,500
• Property insurance: $250
Note: This is only an estimate.
What is this buyer’s estimated income tax
savings and “after tax” payment?
STEPS
KEYSTROKES
DISPLAY
Clear
o o
0.00
Enter term
3 0 T
30.00
Enter interest
8 ˆ
8.00
Enter tax$
1 5 0 0 t
1,500.00
Enter insurance$
2 5 0 I
250.00
Enter loan
1 5 0 ) l
150,000.00
Find P&I
payment
p
“run” 1,100.65
PITI payment
p
1,246.48
Enter tax
bracket
2 8 s p
28.00
Find annual tax
savings
p
3,767.32
Monthly tax
savings
p
313.94
Net payment
p
932.54
3405PRG-E-B 1/9/04 8:45 AM Page 20
