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(Cont'd)
STEPS
Find P&I payment
Find PITI payment
Find total payment (PITI plus
monthly expenses)
Find interest-only payment p
Estimated Income Tax Savings and "After-Tax" Payment
Important Note: This example estimates the annual tax savings
(including property tax and mortgage interest). It is important to
inform your clients to consult a tax advisor for an accurate income
tax deduction computation for their particular tax situation.
Buyers in a 28% income tax bracket are looking to finance a $150,000
mortgage for 30 years at 8% annual interest. If they will be paying
approximately $1,500 in annual property taxes and $250 in annual
property insurance, find their estimated annual tax savings (or mort-
gage interest/property tax savings) and "after-tax" monthly payment.
STEPS
Clear calculator
Enter term in years
Enter annual interest
Enter annual property tax
Enter annual property ins.
Enter loan amount
Find P&I payment
Find PITI payment
Enter tax bracket
Find annual income
tax savings
Find monthly tax savings
Find "after-tax" payment
If the above loan starts in July, find the "after-tax" payment.
STEPS
Set Mo. 1 Offset to July
Enter tax bracket
Find annual tax savings
Find monthly tax savings
Find "after-tax" payment
Return Mo. Offset to Jan.
KEYSTROKES
p
p
p
KEYSTROKES
o o
3 0 T
8 ˆ
1 5 0 0 t
2 5 0 I
1 5 0 ) l
p
p
2 8 s +
s t t
t
t
— DO NOT CLEAR CALCULATOR —
KEYSTROKES
7 s )
2 8 s +
s t t
t
t
1 s )
DISPLAY
"run" 1,681.74
2,315.07
2,465.07
1,402.50
DISPLAY
30.00
1,500.00
250.00
150,000.00
"run" 1,100.65
1,246.48
28.00
3,767.32
313.94
932.54
DISPLAY
28.00
1,887.16
314.53
931.95
U
'
G
— 33
SER
S
UIDE
0.00
8.00
7.00
1.00
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