Calculated Industries 3442 User Manual

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Calculated Industries 3442 User Manual Manual pdf 35 page image

30 — MORTGAGE QUALIFIER PLUS ®P X2Taxes and InsuranceThis calculator has keys that store your estimated local annualProperty Tax, Property Insurance, and Mortgage Insurance (if appli-cable). This allows you to calculate the PITI (Principal, Interest, Tax,and Insurance) payment, in addition to the regular P&I payment. Youmay also enter monthly expenses, such as homeowner’s associationdues—these are included in the calculation of the total payment(PITI plus expenses).By default, the Property Tax and Insurance values are cleared whenthe calculator is shut off, while the Mortgage Insurance value clearswhen you press o twice. However, you can use the PreferenceSettings (s =) to permanently store, or hold Tax and Insurance(% and $) values when the calculator is turned off.Note: There’s a separate Preference Setting for Mortgage Insurance.Tax and insurance can be entered as dollar amounts or percentages.If entered as percentages, the Sales Price or Loan Amount can bechanged and tax and insurance will be recalculated automatically. Ifentered as dollar amounts, however, they will need to be re-enteredfor a change in Sales Price or Loan Amount to be correct. Enteringvalues less than 10 are assumed to be annual percentage rates.IMPORTANT: Property Tax and Property Insurance rates arebased on the Sales Price* (therefore, a Down Payment or SalesPrice should be entered). The Mortgage Insurance rate is basedon the Loan Amount. If neither Sales Price nor Down Paymenthas been entered, the Sales Price is defaulted to equal the LoanAmount (basically assuming a 100% loan), in which case theTax and Insurance rates will be based on the Loan Amountvalue entered.*Property insurance can be based on the Loan Amount by changing the PreferenceSettings.Note: If you are underwriting a loan, many lenders choose to use loan amountinstead of price when figuring out Hazard Insurance. In this case, you will need toturn your Hazard Insurance into a dollar amount: Loan Amount x Hazard InsuranceRate = Hazard Insurance dollar amount. By entering a lower amount into Insurance,it will improve the buying power of your client. However, the client will only be cov-ered for the loan amount and not the complete value of the home.Setting Tax and Insurance % RatesEnter an annual property tax rate of 1.5%, a property insurance rateof 0.25% and a mortgage insurance rate of 0.50%:STEPS KEYSTROKES DISPLAYSet property tax rate 1 • 5 s 7 1.50Set insurance rate • 2 5 s 8 0.25Set mortgage ins. rate • 5 s 9 0.50