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Finding Income Required and Allowable Monthly Debt
Using the 32%:40% ratios, how much income would a buyer need to
finance a $180,000 home, if they put 35% down? What is the maxi-
mum allowable debt? What is the dollar down payment and mort-
gage amount? What is the monthly payment? Use 7.05% interest for
25 years. Estimate property tax rate at 1.5% and $80 for monthly
heating expense.
STEPS
Clear calculator
Enter annual Interest
Enter Term in years
Enter Tax rate
Enter mo. heating Expense 8 0 e
Enter sales Price
Enter Down Payment %
Find Down Payment $
Find Mortgage Amount
Display Qualifying Ratios
Find Income required
Find maximum allowable
monthly Debt
Find P&I Payment
Find PITH Payment
52 — Q
UALIFIER
KEYSTROKES
o o
7 • 0 5 ˆ
2 5 T
1 • 5 t
1 8 0 ) P
3 5 d
d
l
q
q
q
p
p p
P
III
®
LUS
X
DISPLAY
0.00
7.05
25.00
1.50
80.00
180,000.00
35.00
63,000.00
117,000.00
32.00-40.00
"run" 42,303.80
"run" 282.03
823.10
"run" 1,128.10
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