Rent Vs. Buy - Calculated Industries 3430 User Manual

Rent vs. Buy

If your client is currently renting a home for $1,250/month, what is
the comparable home sales price and loan amount that he or she
could afford? What is the estimated annual and monthly income tax
savings, if they were to finance this mortgage? The current rate is
7.5% on a 30-term fixed-rate mortgage, and your client can afford to
put 10% down. You estimate local taxes at 1.25% and property
insurance at 0.35%. Your client is in the 28% tax bracket.
STEPS
Clear calculator
Enter annual Interest rate
Enter Term in years
Enter Down Payment %
Enter tax bracket
Enter property tax rate
Enter property insurance rate • 3 5 s 8
Enter current monthly rent to find
comparable home price
Find comparable loan
amount
Find monthly PITI payment P
Find annual tax savings
Find monthly tax savings
Re-display tax bracket
Re-display monthly rent
*For desktop model, press r key to perform this function.
56 — Q
UALIFIER
KEYSTROKES
o o
7 • 5 ˆ
3 0 T
1 0 d
2 8 s +
1 • 2 5 s 7
1 2 5 0 s P* "run" 216,781.98
P
P
P
P
P
P ® III
LUS FX
DISPLAY
0.00
7.50
30.00
10.00
28.00
1.25
0.35
195,103.78
1,653.24
4,838.84
403.24
28.00
1,250.00