56 — Q
UALIFIER PLUS
®
III
FX
Rent vs. Buy
If your client is currently renting a home for $1,250/month, what is
the comparable home sales price and loan amount that he or she
could afford? What is the estimated annual and monthly income tax
savings, if they were to finance this mortgage? The current rate is
7.5% on a 30-term fixed-rate mortgage, and your client can afford to
put 10% down. You estimate local taxes at 1.25% and property
insurance at 0.35%. Your client is in the 28% tax bracket.
STEPS KEYSTROKES DISPLAY
Clear calculator o o 0.00
Enter annual Interest rate 7 • 5 ˆ 7.50
Enter Term in years 3 0 T 30.00
Enter Down Payment % 1 0 d 10.00
Enter tax bracket 2 8 s + 28.00
Enter property tax rate 1 • 2 5 s 7 1.25
Enter property insurance rate
• 3 5 s 8 0.35
Enter current monthly rent to find
comparable home price 1 2 5 0 s P* “run” 216,781.98
Find comparable loan
amount P 195,103.78
Find monthly PITI payment P 1,653.24
Find annual tax savings P 4,838.84
Find monthly tax savings P 403.24
Re-display tax bracket P 28.00
Re-display monthly rent P 1,250.00
*For desktop model, press r key to perform this function.
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