Sunday, July 11, 2021

Calculated Industries Qualifier Plus IIX and HP 12C: Maximum Loan Amount and Allowable Payment

Calculated Industries Qualifier Plus IIX and HP 12C:  Maximum Loan Amount and Allowable Payment


Introduction


Given the following:


*  term of the loan, in years

*  the amount mortgage

*  annual interest rate

*  monthly expenses including property tax and mortgage interest


The following are calculated:


*  payment, including PITI

*  minimum required income

*  maximum allowable (other) debt


Assumptions:


*  The standard 28:36 ratio is used (28% for PITI, 36% for PITI and other monthly debts)

*  Payments are made at the end of each month


Both of the above parameters are can be changed but the program uses these assumptions.


Formulas (as determined by verifying examples):


PITI =  PMT + monthly property insurance + monthly property tax


Minimum Required Income:

RI = (PITI * 12) / 0.28 


Maximum Allowable (Other Debt): (uses RI from Required Income)

MA = (RI * 0.36) / 12 - PITI


Calculated Industries Qualifier Plus IIx:  Key Strokes


Note:  The IIx is a predecessor of the Qualifier Plus IIIx, however I believe the key strokes should be the same.  


Inputs:

annual interest [ Int ]

number of years [ Term ]

amount to be financed [ L/A ]   ([Loan Amt] on the IIIx)

annual property tax [ Tax ]

annual property insurance [ Ins ]


Alternate to amount to be financed:

total price [ Price ],  down payment as a percent of the price [ Dn Pmt ]


Output:

[ Pmt ] to display payment

[ Pmt ] again to display PITI

[ Qual 1 ] to display the required minimum income

[ Qual 1 ] again to display the maximum allowable (other) debt


HP 12C: Program


Input Instructions: 

annual interest [ g ] (12÷)

number of years [ g ] (12×)

amount to be financed [ PV ]   

0 [ FV ]

monthly combined property tax and insurance [ R/S ]


Alternate:  

annual property tax [ ENTER ] annual property insurance [ + ] 12 [ ÷ ] [ R/S ]


Output:

to display payment

[ R/S ] again to display PITI

[ R/S ] again to display the required minimum income

[ R/S ] again to display the maximum allowable (other) debt



Step # :  Key Code:  Key

01 : 44,0         :    STO 0

02 : 14         :        PMT

03 : 14         :        PMT

04 : 31         :        R/S

05 : 45, 0 : RCL 0

06 : 16         : CHS

07 : 40         : +

08 : 44, 1 : STO 1

09 : 31         : R/S

10 : 48         : .

11 : 2         : 2

12 : 8         : 8

13 : 10         : ÷

14 : 44,3         : STO 3

15 : 1         : 1

16 : 2         : 2

17 : 16         : CHS

18 : 20         : ×

19 : 44,2         : STO 2

20 : 31         : R/S

21 : 45,3         : RCL 3

22 : 16         : CHS

23 : 3         : 3

24 : 6         : 6

25 : 25         : %

26 : 45,1         : RCL 1

27 : 40         : +

28 : 44,3         : STO 3

29 : 43,33,00 : GTO 00


Examples


Example 1:

annual interest:  4.7%

number of years: 30

amount to be financed:  305,000.00

annual property tax: 0.00

annual property insurance: 0.00


Results:

payment:  1,581.85

PITI:  1,581.85

required minimum income:  67,793.37

maximum allowable (other) debt: 451.96


Example 2:

annual interest:  5%

number of years: 30

amount to be financed:  235,000.00

annual property tax: 1,000.00

annual property insurance: 105.00

(monthly combined tax and insurance:  92.08)



Results:

payment:  1,261.53

PITI:  1,353.61

required minimum income:  58,012.03

maximum allowable (other) debt: 386.75


Eddie


All original content copyright, © 2011-2021.  Edward Shore.   Unauthorized use and/or unauthorized distribution for commercial purposes without express and written permission from the author is strictly prohibited.  This blog entry may be distributed for noncommercial purposes, provided that full credit is given to the author. 


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