P
OCKET
R
EFERENCE
G
UIDE
— 39
Rent vs. Buy
• Term: 30 years
• Tax: 1.25%
• Interest: 6.5%
• Insurance: 0.35%
• Down: 10%
• Tax Bracket: 30%
If your client is currently renting a home
for $1,250/month, find the comparable
home sales price and loan amount that
he or she could afford:
STEPS
KEYSTROKES
DISPLAY
Clear
o o
0.00
Enter Term
3 0 T
30.00
Enter Interest
6 • 5 ˆ
6.50
Enter Down
1 0 d
10.00
Enter Tax%
1• 2 5 t
1.25
Enter Ins.%
• 3 5 I
0.35
Tax bracket
3 0 s +
30.00
Enter rent to find comparable
home price
1 2 5 0 s P
237,898.12
Find comparable Loan
Amount
P
214,108.31
Find PITI Pmt.
P
1,670.51
Find annual Tax
savings
P
5,046.09
Mo. Tax svgs.
P
420.51
Reset Tax brkt.
2 8 s +
28.00
3420PRG-E-A 7/2/04 9:07 AM Page 39
