60 — Q
UALIFIER
P
LUS
®
III
X
Solving for Actual Qualifying Ratios
A buyer who makes $120,000 annually and has $550 in long-term
monthly debt wants to borrow $275,000 to purchase a home. He has
$68,750 for the down payment and the property tax/insurance rates
are estimated at 1.4% and 0.2%, respectively; monthly homeowner’s
association dues are $65. Use 6.5% interest for 30 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 6• 5 ˆ 6.50
Enter term 3 0 T 30.00
Enter loan amount 2 7 5 ) l 275,000.00
Enter down payment 6 8 7 5 0 d 68,750.00
Enter annual income 1 2 0 ) i 120,000.00
Enter monthly debt 5 5 0 D 550.00
Enter property tax rate 1• 4 t 1.40
Enter property
insurance rate • 2 I 0.20
Clear mortgage
insurance rate* 0 s I 0.00
Enter monthly
association dues 6 5 e 65.00
Display stored ratios q 28.00-36.00
Calculate actual ratios q “run” 22.62-28.12
Find sales price P 343,750.00
Find the P&I payment p 1,738.19
Find the PITI payment p 2,196.52
Find the total payment p 2,261.52
*Should be set to zero in this case, as the down payment is 20%; to check down pay-
ment percentage, press
d
again and it will read 20.00%.
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