Texas Instruments BA Real Estate - Finding Maximum Allowable Debt

Buyer Qualification 59
Finding Maximum Allowable Debt
1. Enter income percent (if not already entered). 28
# m
2. Enter debt percent (if not already entered). 36
#
d
3. Enter tax percent (if not already entered). 1.5
# Z
4. Enter insurance percent (if not already
entered).
.5
# Q
5. Enter term of loan (in years). 30
0
6. Enter interest rate. 8
1
7. Start the qualification.
>
8. Enter price. $125,000
j
9. Enter down payment percent (0 to 99). 10
j
10. Enter a zero for monthly debt amount (total). 0
11. Compute qualifying loan amount.
j
$112,500.00
12. Compute payment.
j
$.825.49
13. Compute PITI and store it.
j
$.1,033.82
T g
14. Compute qualifying income.
j
$3,692.21
15. Multiply by debt ratio.
O ] # d A j
$1,329.20
16. Calculate maximum debt.
a ] g j
$295.38