Calculated Industries 3415 - Finding Qualifying Loan Amount and Sales Price (Simple Example Excluding Tax;Insurance)

U SER ’ S G UIDE — 55
Finding Qualifying Loan Amount and Sales Price (Simple
Example Excluding Tax/Insurance)
Given an interest rate of 7.5%, a term of 30 years, and the stored
q 28%:36% qualifying ratios, for what size loan and what sales
price can a buyer qualify for if he or she makes $75,000 annually
and has $500 in long-term monthly debt? The buyer plans to put
$35,000 down. Also, what is the monthly (P&I) payment? (Based on
no Tax and Insurance*)
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter term in years 3 0 T 30.00
Enter annual interest 7 • 5 ˆ 7.50
Clear tax rate* 0 t 0.00
Clear insurance rate* 0 I 0.00
Clear mortgage insurance
rate* 0 s I 0.00
Enter annual income 7 5 ) i 75,000.00
Enter monthly debt 5 0 0 D 500.00
Enter down payment 3 5 ) d 35,000.00
Display qualifying ratios q 28.00-36.00
Find qualifying loan amount q “run” 250,280.85
Find price P 285,280.85
Find monthly P&I payment p 1,750.00
*Note: Tax and Insurance will need to be cleared if you’re continuing from a previous
example where rates were stored.
— DO NOT CLEAR CALCULATOR —
Re-qualify this buyer assuming $200 per month in additional debt.
STEPS KEYSTROKES DISPLAY
Enter new monthly debt 7 0 0 D 700.00
Display qualifying ratios q 28.00-36.00
Find lower qualifying loan
amount q “run” 221,677.32
Find lower price P 256,677.32
Find monthly P&I payment p 1,550.00