50 — Q
UALIFIER
P
LUS
®
4
X
Solving for Actual Qualifying Ratios
A buyer who makes $60,000 per year and has $350 in long-term
monthly debt wants to borrow $100,000 to purchase a home. He has
$25,000 down payment and annual property tax is estimated at
1.4%. Monthly housing expenses are estimated at $150. Use 7.5%
interest for 25 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 Interest rate
7 • 5 ˆ
7.50
Enter Term in years
2 5 T
25.00
Enter Mortgage Amount
1 0 0 ) l
100,000.00
Enter annual Income
6 0 ) i
60,000.00
Enter monthly Debt
3 5 0 D
350.00
Enter Down Payment
2 5 ) d
25,000.00
Find LTV
d d
80.00
Enter property Tax rate
1 • 4 t
1.40
Enter mo. housing Expense
1 5 0 s D
150.00
Display stored Ratios
q
32.00-40.00
Calculate actual Ratios
q
“run” 20.55-27.55
Find sales Price
P
125,000.00
Find P&I Payment
p
731.55
Find Total Payment
p
1,027.39
— DO NOT CLEAR CALCULATOR —
The Canadian Mortgage Insurance for this mortgage is estimated at
1.00% based on an LTV of 80%. Find the actual ratios, Mortgage
Amount, income required, and monthly payment for a mortgage that
includes Canadian Mortgage Insurance.
STEPS
KEYSTROKES
DISPLAY
Enter Canadian Mortgage
Insurance
1 C
1.00
Display stored ratios
q
32.00-40.00
Calculate actual ratios
q
20.55-27.55
Find Mortgage Amount
l
100,000.00
Find Mortgage Amount
(including Canadian
Mortgage Insurance
l
101,000.00
Find P&I Payment
p
738.87
Find Total Payment (including Canadian
Mortgage Insurance)
p
1,034.70
