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12 — Q
UALIFIER PLUS
®
III
FX
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 +), then enter the
prospective buyer’s current rent and press s P.
Consecutive presses of P will calculate the com-
parable sales price, loan amount, monthly loan pay-
ment (including tax/insurance, if entered), and esti-
mated annual/monthly income tax savings.
DESKTOP MODEL ONLY:
r Your calculator has a dedicated Rent vs. Buy key
that operates as identified above.
Qualifying Keys
q (Qualify Based on 28%-36%) — A multi-function
key which, based on entered variables, performs the
following pre-qualifying functions:
1) Stores income and debt ratios for loan qualifying.
Ratios are entered using the Colon : key (Income
Ratio : Debt Ratio). 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 quali-
fying ratios, if desired.
What are Qualifying Ratios?
The income ratio calculates the allowable percent 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 conservative rule
is that total housing expenses should be 28% or
less of income, while total housing expense plus
monthly debt should be 36% or less of income.
INCOME RATIO =
TOTAL HOUSING EXPENSE
GROSS MONTHLY INCOME
(Cont’d)
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