Calculated Industries 3416 Pocket Reference Guide - Manual (Page 18)

P
OCKET
R
EFERENCE
G
UIDE
— 14
Rent vs. Buy
• Term: 30 years
Tax: 1.25%
• Interest: 7.5% Ins: 0.35%
• Down: 10% Tax bracket: 30%
If your client is currently renting a home
for $1,250/month, find the comparable
home sales price and loan amount that
he or she could afford:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter term 3 0 T 30.00
Enter interest 7 • 5 ˆ 7.50
Enter down 1 0 d 10.00
Enter property
tax% 1 • 2 5 t 1.25
Enter insurance%
• 3 5 I 0.35
Tax bracket 3 0 s + 30.00
Enter rent to find comparable
home price 1 2 5 0 s P
221,894.90
Find comparable loan
amount P 199,705.41
Find PITI payment
P 1,692.23
Find annual
tax savings P 5,306.75
Monthly tax
savings P 442.23
Reset tax
bracket 2 8 s + 28.00