58 Buyer Qualification
Press # , until the BGN indicator disappears.
Steps Keystrokes Display
Clear TVM values.
# - 0.00
Enter income percent.
28 # m IN% = 28.00
Enter debt percent.
36 # d DB%= 36.00
Enter tax percent.
1.5 # Z TX%= 1.50
Enter insurance
percent.
.5 # Q IS%= 0.50
Enter term.
30 0 TRM= 30.00
Enter interest rate.
8 1 I% = 8.00
Start qualification.
> PRC= 0.00
Enter price.
125 q j PRC= 125,000.00
DN%= 0.00
Enter down payment
percent (0 to 99).
10 j DN%= 10.00
DBT= 0.00
Enter a zero for
monthly debt amount,
and compute
qualifying loan
amount.
0 j DBT= 0.00
LN = 112,500.00
Compute payment.
j PMT=
825.49
Compute PITI and
store the result.
j T g PITI =
1,033.82
Compute qualifying
income.
j QI = 3,692.21
Multiply by debt
ratio.
O ]
# d A j
1,329.20
Calculate maximum
debt.
a ] g j
295.38
Finding the Maximum Allowable Debt
Assuming a sales price of $125,000, 10% down payment,
8% annual fixed rate, 30-year term, and an income/debt
ratio of 28/36, determine the maximum debt a buyer can
have and still qualify for the loan. Also assume that the
annual tax rate is 1.5% and the annual insurance rate is
0.5%
Solution
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