Calculated Industries 3442 - Manual (Page 11)

6 — M
ORTGAGE
Q
UALIFIER
P
LUS
®
P X2
Rent vs. Buy Keys
s P Rent vs. Buy — Calculates a comparable sales
price, loan amount and mortgage payment (versus
the cost of monthly rent). You must enter loan vari-
ables and a tax bracket via
s p , then enter the
prospective buyer’s current rent and press s
P . Consecutive presses of P will calculate the
comparable sales price, loan amount, monthly loan
payment (including tax/insurance, if entered) and
estimated annual/monthly income tax savings, and
tax bracket.
s p Tax Bracket (Tax Brkt%) — Enters a buyer’s tax
bracket for figuring Rent vs. Buy calculations or for
calculating estimated mortgage interest tax deduc-
tion in the Amortization calculation. Press
® s
p to display stored percentage. (Default=21%)
Qualifying Keys
q (Qualify Based on 28%-36%) — A multi-function
key which, based on entered variables, performs the
following qualifying functions:
1) Stores income and debt ratios for loan qualify-
ing. Entered ratios are separated by the Colon
:
key. For example, income and debt ratios of 28%
and 36%, respectively, are entered and permanently
stored as follows:
2 8 : 3 6 q . Default
income and debt ratios for this key are 28% and
36%, respectively. You may change qualifying ratios,
as desired.
What are Qualifying Ratios?
The income ratio calculates the allowable percent-
age of income for the total housing payment, while
the debt ratio finds the allowable percentage of
income for the total housing payment plus long-term
debts (usually 12 months or longer). The
conserva-
tive rule is that housing expenses should be 28% or
less of income, while total housing expense/debt
should be 36% or less of income.
(Cont’d)