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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 calculation 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 mortgage interest/property tax savings) and "after-tax" monthly
payment.
STEPS
Clear calculator
Enter Term in years
Enter annual Interest
Enter annual prop. Tax
Enter annual prop. 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.
66 — Q
UALIFIER
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 p
p
p
p
— DO NOT CLEAR CALCULATOR —
KEYSTROKES
7 s )
2 8 s p
p
p
p
1 s )
P
III
®
LUS
X
DISPLAY
0.00
30.00
8.00
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
7.00
28.00
1,887.16
314.53
931.95
1.00
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