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— 35
(Cont’d)
STEPS KEYSTROKES DISPLAY
Find P&I payment p “run” 1,681.74
Find PITI payment p 2,315.07
Find total payment (PITI plus
monthly expenses) p 2,465.07
Find interest-only payment p 1,402.50
Estimated Income Tax Savings and “After-Tax” Payment
Important Note: This example estimates the annual tax savings
(including property tax and mortgage interest). It is important to
inform your clients to consult a tax advisor for an accurate income
tax deduction computation for their particular tax situation.
Buyers in a 28% income tax bracket are looking to finance a $150,000
mortgage for 30 years at 8% annual interest. If they will be paying
approximately $1,500 in annual property taxes and $250 in annual
property insurance, find their
estimated
annual tax savings (or mort-
gage interest/property tax savings) and “after-tax” monthly payment.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter term in years 3 0 T 30.00
Enter annual interest 8 ˆ 8.00
Enter annual property tax 1 5 0 0 t 1,500.00
Enter annual property ins. 2 5 0 I 250.00
Enter loan amount 1 5 0 ) l 150,000.00
Find P&I payment p “run” 1,100.65
Find PITI payment p 1,246.48
Enter tax bracket 2 8 s p 28.00
Find annual income
tax savings p 3,767.32
Find monthly tax savings p 313.94
Find “after-tax” payment p 932.54
— DO NOT CLEAR CALCULATOR —
If the above loan starts in July, find the “after-tax” payment.
STEPS KEYSTROKES DISPLAY
Set Mo. 1 Offset to July 7 s ) 7.00
Enter tax bracket 2 8 s p 28.00
Find annual tax savings p 1,887.16
Find monthly tax savings p 314.53
Find “after-tax” payment p 931.95
Return Mo. Offset to Jan. 1 s ) 1.00
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