Texas Instruments BA Real Estate - Net Cost of Housing Based on Tax and Insurance Percents

Prepared for ________________________________ By _________________________ Date ____________
Copyright © 1993, 1996 by Texas Instruments Incorporated.
27
BA Real Estate™ Worksheet
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Net Cost of Housing Based on
Tax and Insurance Percents
1. Clear TVM values (if not already cleared).
# -
2. Enter sales price.
@
3. Enter tax percent (if not already entered).
# Z
4. Enter insurance percent (if not already entered).
# Q
5. Enter term of loan (in years).
0
6. Enter interest rate.
1
7. Enter loan amount.
2
8. Compute payment.
$ 3
9. Recall loan amount.
] 2
10. Multiply by annual interest rate (as a
percentage) to find approximate annual
interest.
O ] 1 A j
T g
11. Add annual tax amount.
] @ O ]# Z A j
12. Calculate total tax-deductible items.
a ] g j
13. Multiply by homeowner’s income-tax rate.
O
A
14. Calculate annual tax savings.*
j
15. Divide by 12 to find monthly tax savings, and
store the result in memory.
B
12
j
T g
16. Compute PITI.
$ &
17. Subtract monthly tax savings.
X ] g t
18. Calculate monthly net cost of housing.
j
*
Assumes the homeowner is not using the standard deduction.