Finding The Qualifying Loan Amount - Texas Instruments BA Real Estate User Manual

Finding the Qualifying Loan Amount

Situation
Solution
54 Buyer Qualification
In this example, you know the tax, insurance, and down
payment percentages.
You are helping a couple find a home. They have a com-
bined monthly income of $6,500, with one car payment of
$320 and other monthly debts of $175. Assuming an 80%
loan at 8% annual interest for 30 years, a tax rate of 1.5%,
an insurance rate of .5%, and using 28/36 qualifying ratios,
estimate the maximum loan amount and sales price this
couple should consider.
Steps
Clear TVM values.
Enter income percent.
Enter debt percent.
Enter tax percent.
Enter insurance
percent.
Enter term.
Enter interest rate.
Start qualification.
Enter monthly income
amount.
Enter monthly debt
amount.
Enter down payment
percent and compute
PITI.
Compute loan payment.
Compute loan amount.
Compute sales price.
Compute down
payment.
Keystrokes Display
# -
28 # m
IN% =
36 # d
DB%=
1.5 # Z
TX%=
.5 # Q
IS% =
30 0
TRM=
8 1
I% =
?
INC =
6500 j
INC =
DBT=
320 a 175 j
DBT=
DN%=
20 j
DN%=
PITI=
j
PMT=
j
QLA= 193,185.87
j
QPR= 241,482.34
j
DN$=
0.00
28.00
36.00
1.50
0.50
30.00
8.00
0.00
6,500.00
0.00
495.00
0.00
20.00
–1,820.00
–1,417.53
48,296.47