Estimated Income Tax Savings And "After-Tax" Payment - Calculated Industries 3442 User Manual

(Cont'd)
STEPS
Enter property insurance
Enter mortgage insurance 1 2 0 0 s 9
Enter monthly expenses
Find loan amount
Find P&I payment
Find PITI payment
Find total payment (PITI
plus mo. expenses)
Find interest-only payment p

Estimated Income Tax Savings and "After-Tax" Payment

Note: This example calculates the annual tax savings (including property tax and
mortgage interest) and is only an estimate. Please inform your clients to consult a tax
advisor for an accurate calculation of their income tax deductions.
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 pay-
ment.
STEPS
Clear calculator
Enter term in years
Enter annual interest
Enter annual tax
Enter annual insurance
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
34 — M
ORTGAGE
KEYSTROKES
5 0 0 s 8
1 5 0 s D
l
p
p
p
KEYSTROKES
o o
3 0 T
8 ˆ
1 5 0 0 s 7
2 5 0 s 8
1 5 0 ) l
p
p
2 8 s p
p
p
p
— DO NOT CLEAR CALCULATOR —
Q P
UALIFIER LUS
®
X2
P
DISPLAY
500.00
1,200.00
150.00
280,500.00
"run" 1,681.74
2,315.07
2,465.07
1,402.50
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