Finding The Maximum Allowable Debt - Texas Instruments BA Real Estate User Manual

Finding the Maximum Allowable Debt

Solution
58 Buyer Qualification
Assuming a sales price of $125,000, 10% down payment,
8% annual fixed rate, 30-year term, and an income/debt
ratio of 28/36, determine the maximum debt a buyer can
have and still qualify for the loan. Also assume that the
annual tax rate is 1.5% and the annual insurance rate is
0.5%
Press # , until the BGN indicator disappears.
Steps
Clear TVM values.
Enter income percent.
Enter debt percent.
Enter tax percent.
Enter insurance
percent.
Enter term.
Enter interest rate.
Start qualification.
Enter price.
Enter down payment
percent (0 to 99).
Enter a zero for
monthly debt amount,
and compute
qualifying loan
amount.
Compute payment.
Compute PITI and
store the result.
Compute qualifying
income.
Multiply by debt
ratio.
Calculate maximum
debt.
Keystrokes
# -
28 # m
36 # d
1.5 # Z
.5 # Q
30 0
8 1
>
125 q j
10 j
0 j
j
j T g
j
O ]
# d A j
a ] g j
Display
0.00
IN% = 28.00
DB%= 36.00
TX%= 1.50
IS%= 0.50
TRM= 30.00
I% = 8.00
PRC= 0.00
PRC= 125,000.00
DN%= 0.00
DN%= 10.00
DBT= 0.00
DBT= 0.00
LN = 112,500.00
PMT= 825.49
PITI = 1,033.82
QI = 3,692.21
1,329.20
295.38