Table of Contents
Advertisement
Qualifying Mortgage Amount and Sales Price (Including Down
Payment, Property Tax and Monthly Heating/Condo Fees)
The same buyers as in the previous example (who make $45,000
annually and have $200 in long-term monthly debt) wish to buy a
lower-priced condo, but can only afford $7,500 down. If you include
estimated annual property tax of 1.5% and other housing expenses
of $150 ($100 for heating, $50 for monthly condo fees), for what
mortgage amount can they now pre-qualify? What sales price can
they afford? What's their PITH or total payment? (Again, using previ-
ously stored 7.5% interest, 25-year term and qualifying ratios of
32%:40%; if you've cleared or changed these values, please re-
enter them.)
STEPS
Clear calculator
Enter annual Income
Enter monthly Debt
Enter Down Payment
Set annual prop. Tax rate
Enter housing Expense
Recall Interest*
Recall Term*
Display Qualifying Ratios
Find pre-qualifying
Mortgage Amount
Find Price
Now find the monthly P&I payment (Principal & Interest), PITI pay-
ment (Principal, Interest, and Property Tax) and PITH/Total Payment
(PITI plus monthly heating and condo fees):
STEPS
Find P&I Payment
Find PITI Payment**
Find PITH/total Payment
*Re-enter interest and term if you are not continuing from the previous example.
**Adds monthly property tax to the monthly payment. Insurance is not included for
Canadian payment calculations.
48 — Q
UALIFIER
KEYSTROKES
o o
4 5 ) i
2 0 0 D
7 5 0 0 d
1 • 5 t
1 5 0 e
® ˆ
® T
q
q
P
— DO NOT CLEAR CALCULATOR —
KEYSTROKES
p
p
p
P
III
®
LUS
X
DISPLAY
0.00
45,000.00
200.00
7,500.00
1.50
150.00
7.50
25.00
32.00-40.00
"run" 121,489.58
128,989.58
DISPLAY
"run" 888.76
1,050.00
1,200.00
Advertisement
Table of Contents
