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Calculated Industries Qualifier Plus IIIFX-Desktop

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1. ccccceeeeeeeeeeeees 18 Reduction in Listing Price Discount ccceeeeeeeeteeeteteeeees 19 Simple 1 Year Home Appreciation Add On ceeeeeeees 19 Date Examples cs is ssccvviss ccthraeasasts devious auasctect ap aacereere ce 20 CALCULATOR SETTINGS ccseeecssseeeseeeeeeeeesesneeeenseeeesseeeenseeeeas 21 Decimal Place Selection ccccccecceeeseeeeeeeeeeeeeeeeeesneeeseneeeteas 21 Preference Settings ccccsceesseeeceneeeceneeeeeneeeseeeeteneeessaeetas 22 MEMORY aE E E A A A E suieesscuteventerteesuecteus 24 Accumulative Memory ssssssssssresssrersesirnnaesinnnnernnannerenannerennnnae 24 Memory Storage Keys MO MB cccceeeeeeeeeeeeeeeeeeeeeeteneeeees 25 EXAMPLES oe ee caccer E vases unuceuwunsestaeccer 27 MORTGAGE LOANS TIME VALUE OF MONEY TVM 27 Finding the Monthly Mortgage P amp I Payment ceeee 28 Finding the Loan AMOUM1 cccecseeeeeeesneeeeeeeeneeeeeeteneeeeeeeeaas 28 Finding the Interest Rate cc eecceeeeeseeeeeeeeeneeeeeeeeneeeeeeeeaees 28 Finding the Term of a Loan ariere ia aiaa 29 Paying Off a Mortgage Early Making Larger Payments 29 Simple Interest vs Compound Interest 30 Sales Price Down Payment eseeseeeseeeeeeserrrerireerererirrereesrreene 30 Finding Loan Amount Based on Sales Price and Down Payment oor eane eT ehay E ANAE dtseae olanaiteuieeeds 30 Taxes and INSuUrance sssessrressrrrress
2. 8 Your calculator automatically advances to the next Amortization Range or Period after the initial sequence is complete upon repeated presses of AZ This saves you from entering the next range or period each time 36 QUALIFIER PLus IIlFx Total Principal and Interest for a 30 Year Loan How much total interest will you pay on a 300 000 loan at 7 5 interest over 30 years What is the total principal and interest paid STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount 3 Gh Gen 300 000 00 Enter annual Interest rate C6 0 7 50 Enter Term in years 3 0 30 00 Find monthly P amp I Payment GD run 2 097 64 Find total of payments run 1 360 Find total interest paid Amort 455 151 67 Find total principal paid 300 000 00 Find total principal interest 755 151 67 Balloon Payment Remaining Balance Needed to Pay Off a Loan You re looking at a new home with the following financing available Loan amount 225 000 at 6 75 amortized over 30 years but due and payable after 10 years What is the balloon payment remaining balance after 10 years STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount 2 2 6 Gh Gen 225 000 00 Enter annual Interest rate 0006 6 75 Enter Term in years 3 0 Ei 30 00 Find monthly P amp I Payment GD run 1 459 35 Find balloon remaining balance after 10 yeas D GM run 191 927 25 USER S GUIDE 37 Amortization List for Indi
3. ceeeeeeeeee 59 Storing New Income Debt Qualifying Ratios 59 Finding Qualifying Loan Amount and Sales Price Simple Example Excluding Tax INSUrance cccscecceseeeseteeseteeeeees 60 USER S GUIDE 3 Qualifying Loan Amount and Sales Price Complete Example Including Down Payment Tax Insurance Monthly Association DUS 222 svg goticg leas Ale eactin TT 61 Restricted Qualifying 0 02 ee ceeeeeeeeeeeeteeeteeeeeeeeeeeteaeeeteeeeteneeees 62 Unrestricted Qualifying 2 2 cecececeteeeeceeeeeeneeeeeeeeseeeeteeeeteaeeens 63 Qualifying Comparison Comparing Two Different Loans or Ratios at ONCE rretra eceania stein denne 64 Finding Income Required and Allowable Monthly Debt 65 Solving for Actual Qualifying Ratios 66 1ST AND 2ND TRUST DEEDS COMBO LOANS 000 67 Combo Loan 80 10 10 vs Fixed Rate Loan with Mortgage INSUPANCE ieee cet ET AAEE A T TTA 68 Combo Loan 80 15 5 vs Fixed Rate Loan with Mortgage INSUPANCO EER E E T siete 70 Combo Loan Entering a New LTV oaeee 72 Financed Mortgage Insurance Compared to a Combo Loan 74 CASH FLOW EXAMPLEG cccceseeceseeeeeeeeeeeseeeeneeeeessneneneseeeees 76 Calculating IRR NPV and NFV for Annual Cash Flows 78 Calculating IRR NPV and NFV for Monthly Cash Flows 79 Recalling and Replacing Cash FIOWS ccceseeeeeeteeeeees 80 Recalling and Replacing Cash Flow Frequencies 0
4. Calculating IRR NPV and NFV for Monthly Cash Flows 79 Real Estate Investment Calculating IRR NPV and NFV for Annual Cash Flows 78 Recalling and Replacing Cash Flow Frequencies 80 Recalling and Replacing Cash Flows 80 Reduction in Listing Price Discount 19 Rent vs Buy 56 Rent vs Buy Keys 12 Repair and Return 83 Reset 81 Restricted Qualifying 62 Retirement Savings Future Value of Monthly Investment Using Beginning Mode 44 Retirement Savings Account Problem Future Value of an Initial Deposit or Lump Sum 44 Sales Price Down Payment 30 Simple Interest vs Compound Interest 30 Storing New Income Debt Qualifying Ratios 59 Tax and Insurance Setting 32 Tax and Insurance or Calculating 33 Tax and Insurance Rates Recalling 32 Tax and Insurance Rates Setting 32 Tax Savings Keys 11 Tax Insurance and Expense Keys 10 Taxes and Insurance 31 Term of a Loan 29 Total Payment 34 Total Principal Total Interest for a 30 Year Loan 37 Trust Deeds and Discounted Notes 46 Unrestricted Qualifying 63 Warranty 84 UserR s GUIDE 87 J CALCULATED JI INDUSTRIES Putting answers at your fingertips since 1978 Designed in the United States of America Printed in China 8 07 x UG3430E E
5. 2 12 00 Find quarterly P amp I Payment Gad run 648 94 Reset to 12 payments year M 2 Gi S run 12 00 Trust Deeds and Discounted Notes Your calculator easily handles trust deed purchase price and yield problems Two things to remember are 1 when entering or solving for yield or rate of return use the key and 2 when entering or solving for purchase price or present value use the key Purchase Price of a Note Fully Amortized The mortgage you are thinking about buying has the following terms and conditions 15 years remaining 100 per month incoming pay ments and you want a 25 yield or return on your investment In this case you are paying for the income stream the incoming pay ments and not the future value What price should you pay on this desired yield STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter desired yield 25 00 3 ee 3 Enter term in years 15 00 Enter payment amount 0 Gp 100 00 Find purchase price run 4 682 68 DO NOT CLEAR CALCULATOR What if you want a 20 yield Leave all of the above data and re enter the 20 interest over the old rate then re calculate the loan amount STEPS KEYSTROKES DISPLAY Enter your new desired rate of return 2 0 0 20 00 Find purchase price run 5 693 80 46 QUALIFIER PLus IIlFx Finding the Yield on a Discounted Note An individual wants to sell you a note under the following
6. 225 000 30 year loan at 7 4 interest find how much inter est and principal you ll pay in payments 1 9 STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount 2 2 6 Gh Gen 225 000 00 Enter annual Interest rate 4a 7 40 Enter Term in years 3 30 00 Find monthly P amp I Payment GD run 1 557 85 Enter Payments 1 9 O80 GD S tm run 1 9 Find interest paid Amort 12 449 13 Find principal paid 1 571 56 Total principal and interest Guz 14 020 69 Find remaining balance Amort 223 428 44 Find remaining term 29 25 Find mortgage interest deduction for Payments 1 9 Amort 3 485 76 DO NOT CLEAR CALCULATOR Amortization List for a Range of Years Using the same values as the previous example find how much interest and principal you will pay in years 1 10 STEPS KEYSTROKES DISPLAY Enter Years 1 10 mamno run 1 120 Find interest paid 156 798 68 Find principal paid 30 143 87 Total principal and interest M 186 942 55 Find remaining balance Amort 194 856 13 Find remaining term 20 00 Find mortgage interest deduction for Years 1 10 43 903 63 Note For desktop model press to perform this function User s GuipE 41 Bi Weekly Loans Your calculator includes a Bi Weekly loan function E amp M D which allows you to convert established fully amortized monthly loans into Bi Weeklies in which one half the monthly payment is made every two weeks Because you make two extra half payments p
7. wish to buy a lower priced home and can only put 5 000 down If you include estimated annual property taxes and insurance of 1 5 and 0 25 respectively a mortgage insurance rate of 0 6 and monthly home owner s association dues of 50 for what loan amount can they now qualify What sales price can they afford What s their total payment Again use the previously stored 7 5 interest 30 year term and qualifying ratios of 28 36 if you ve cleared or changed these values please re enter them STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter annual Income 7 6 Ge Gs 75 000 00 Enter monthly Debt 0 Gy 500 00 Enter Down Payment 5 CD Gi 5 000 00 Enter property tax rate OOS shitt 1 50 Enter property insurance rate 2 ED 0 25 Enter mortgage insurance rate 6 em 9 0 60 Enter monthly association dues 5 0 50 00 Recall annual Interest rate CB 7 50 Recall Term in years ca 30 00 Display Qualifying Ratios GZ 28 00 36 00 Find Qualifying Loan Amount ZD run 189 119 31 Find Price 194 119 31 DO NOT CLEAR CALCULATOR Now find the monthly P amp I payment PITI payment total payment and interest only payment STEPS KEYSTROKES DISPLAY Find monthly P amp I Payment GD run 1 322 35 Find monthly PITI Payment GD 1 700 00 Find total monthly Payment Ga 1 750 00 Find monthly interest only Payment cD 1 182 00 If you re not continuing from the previous problem you ll need to re e
8. you should also enter a Down Payment Property Insurance Ins Used for calculating PITI and Total payment and Qualifying Stores esti mated annual property or homeowner s insurance in either percent or dollar amount If entered as an annual dollar amount pressing EB 8 converts to the monthly insurance amount or premium and pressing EG 8 again converts to the annual per centage rate If entered as a percentage pressing CI 8 converts to the annual dollar amount and pressing EB 8 once more shows the monthly insurance Note Entering a number equal to or less than 10 is assumed to be an annual percentage Property insurance is calculated from the sales price therefore you should also enter a Down Payment Mortgage Insurance Mtg Ins Used for calculat ing PITI and Total payment and Qualifying Stores estimated annual mortgage insurance or Private Mortgage Insurance in either percent or dollar amount If entered as an annual dollar amount a press of E 9 converts to the monthly mortgage insurance amount or premium and pressing 9 again converts to the annual percentage rate If entered as a percentage pressing ED 9 converts to the annual dollar amount and pressing E3 9 once more shows the monthly insurance Cont d 10 QUALIFIER PLus IIlFx Cont d Exp Note Entering a number equal to or less than 10 is assumed to be an annual percent Mortgage insurance is calculated from the
9. 1 00 Find lower ARM payment run 1 ARM 1 527 15 54 QUALIFIER PLus IIlFx Estimated Income Tax Savings and After Tax Payment Important Note This example estimates the annual tax savings including property tax and mortgage interest It is important to inform your clients to consult a tax advisor for an accurate income tax deduction computation for their particular tax situation Buyers in a 28 income tax bracket are looking to finance a 150 000 mortgage for 30 years at 8 annual interest If they will be paying approximately 1 500 in annual property taxes and 250 in annual property insurance find their estimated annual tax savings or mort gage interest property tax savings and after tax monthly payment STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Term in years 3 0 30 00 Enter annual Interest rate 8 D 8 00 Enter annual property tax 0 Gi Z 1 500 00 Enter annual property ins 2 Gil 250 00 Enter Loan Amount 0 6 Gh G7 150 000 00 Find monthly P amp I Payment GD run 1 100 65 Find monthly PITI Payment GD 1 246 48 Enter tax bracket 2 8 Gi gp run 28 00 Find annual income tax savings Ga 3 767 32 Find monthly tax savings Gad 313 94 Find after tax Payment GD 932 54 For desktop model press key to perform this function DO NOT CLEAR CALCULATOR If the above loan starts in July find the after tax payment STEPS KEYSTROKES DIS
10. 80 of the price is covered by the 1st TD 15 of the price is covered by the 2nd TD and the remaining 5 is covered by the down payment Note You may also enter any LTV for either D or GM 80 15 5 Combo Loans keys For example to enter a 90 5 LTV enter 9 6 or 8 Gm and continue to press the key to find the below values N and Gi 80 15 5 Key Output For a comparison of a fixed rate combo loan versus a fixed rate loan with required mortgage insurance each key press once all other loan values are entered including 1st 2nd Interest Term will calculate Cont d User s GuipE 15 Cont d an aa Press Display or Calculation 1 Combo Loan Combined Blended Interest Rate 2 Equivalent Interest Rate of Fixed Rate Mortgage with Mortgage Insurance 3 Combo Loan Combined 1st 2nd TD Payment 4 Equivalent Payment of Fixed Rate Mortgage with Mortgage Insurance 5 Monthly Savings over Fixed Rate Loan with Mortgage Insurance Adjusted 2nd Term if Savings Applied to 2nd TD 1st Trust Deed Loan Amount 2nd Trust Deed Loan Amount 1st Trust Deed Payment 10 2nd Trust Deed Payment 11 Displays LTV 1st TD Interest Term Stores the annual interest and term for the 1st fixed rate TD These values are used when computing the 1st 2nd fixed Combo Loan Entry is made using the key Interest Term Both interest and term values are required for a valid entry Values will be retained
11. 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 Gi then enter the prospective buyer s current rent and press Gil CB Consecutive presses of 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 Your calculator has a dedicated Rent vs Buy key that operates as identified above Qualifying Keys 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 CD 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 expen
12. DEC OFF 0 00 Clears decimal place setting resets to 0 00 at CB Default DEC Hold Entry Permanently sets number of decimal places 2 Payments Per Year P Y OFF 12 00 ANN Resets to 12 00 at B Default P Y Hold Entry ANN Permanently sets payments year 3 Property Tax Insurance T I Clr OFF TAX INS Clears all T l and entries at Default Hold Pct TAX INS Holds only T I percent entries at Hold All TAX INS Holds all T I and entries at B Clr Clr TAX INS Clears all T l and entries at double press of or Gia Cont d 22 QUALIFIER PLus IIIFx Cont d After i Keep Description Pressing Press to Advance Display within each category to Back up 4 Mortgage Insurance Ml Clr Clr M Ins Clears mortgage insurance and upon A Default Clr OFF M Ins Clears mortgage insurance and at CB HOLD Pct M Ins Holds only percent mortgage insurance entry at B HOLD ALL M Ins Holds or mortgage insurance entry at B 5 Amortization Single Entries AMRT Ent Ent Displays amortization for specified year only e g enter 5 payments 49 60 Default AMRT 1 Ent Displays amortization from beginning to specified year e g enter 5 payments 1 60 6 Display Qualifying Ratios Q R PRESS 1 Displays ratio at beginning of sequence Default Q R AT
13. I Payment amount Pmt 1 353 37 Find reduced loan Term run 18 15 USER S GUIDE 29 Simple Interest vs Compound Interest If you borrow 5 000 at 6 simple interest how much will you owe at the end of 5 years Note This is a simple math problem and does not require the use of TVM keys STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Multiply loan amount by interest N 9 6 a B 300 00 Multiply by term O 1 500 00 Add original loan amount 6m amp 6 500 00 If the loan is compounded monthly what will you owe STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter loan amount OD amp 5 000 00 Enter term in years 6 Gi 5 00 Enter annual interest rate 6 6 00 Find future value Shift run 6 744 25 Sales Price Down Payment One of the unique features of this calculator is its ability to work with not only Loan Amount but with Sales Price and Down Payment You can enter two values to find the third e g enter Price and Down Payment to find Loan Amount You may also enter the Down Payment in both percent or dollar format For example to enter 20 enter 20 and press the QHD key you do not have to label it as a percent Or enter 20 000 e g 2 0 Gal CD Note A number under 100 entered as the Down Payment is assumed to be a percentage Note When using UB Gi and keys it s recommended that you always enter the two known values Price and Down Payment then solve for the third Loan Amou
14. Total Interest Principal Paid STEPS KEYSTROKES DISPLAY Find Bi Weekly Term Shift run 24 60 Find total interest savings 65 430 46 Find total interest paid 245 508 33 Find total principal 275 000 00 Find total principal and interest 520 508 33 Find Bi Weekly P amp I Payment QD 813 80 Clear calculator 0 00 Notice you save a significant amount over 65K in this example with a Bi Weekly Note Return to monthly payment mode by pressing twice Future Value Given any four components to a problem that includes a future value you can calculate the fifth Appreciation Future Value You purchased a home for 350 000 and want to know what it will be worth in 3 years figuring an inflation or appreciation rate of 6 Set to one payment period per year STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Set to 1 payment per year D OD S 1 00 Enter present value 3 6 Gh G7 350 000 00 Enter term in years 3 rem 3 00 Enter appreciation rate 6 0 6 00 Find future value Shift run 416 855 60 Return to 12 payments per year o Ean Ge 12 00 Calculations must be set to default of 12 periods per year for compounding monthly If it isnt enter O 2 ED USER S GUIDE 43 Retirement Savings Account Problem Future Value of an Initial Deposit or Lump Sum If you invest 50 000 today into an IRA with an 8 yield compound ed monthly what is the future value in 25 years What will it be worth in 30
15. annual basis although you can also enter a 6 month adjustment term as 5 This value is permanently stored in memory After performing an ARM calculation your permanently stored values for Term and Interest will be changed since performing an ARM alters these values To calculate a decreasing ARM enter the two ARM parame ters but press the Gi key before pressing GE The calculator includes a lifetime cap i e the maximum amount the interest rate may increase over the life of a loan Prior to setting your ARM parameters key in the maximum life time interest increase followed by Gi This permanently sets the lifetime cap To restore the cap to 0 enter 0 ED User s GuipE 51 ARM Payment Worst Case Scenario Find the initial monthly P amp I payment on a 30 year 176 000 mortgage at 8 25 annual interest rate and then find the second and third year s worst case adjusted payments if this ARM loan increases 1 at the end of each year Then find the remaining loan balance current interest rate and remaining term STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount OM 6 Gi GH 176 000 00 Enter Term in years 3 30 00 Enter annual Interest rate 0 2 6 a 8 25 Find initial monthly P amp I Payment 1st year cD run 1 322 23 Enter ARM parameters OL J0 1 00 1 00 Find 1st adjusted 2nd year ARM payment ARM 1ARM 1 445 79 Find 2nd adjusted 3rd year ARM pay
16. interest or future value amortization or Bi Weekly loans Other useful keys such as Price and Down Payment are also included These mortgage loan keys let you easily demonstrate various what if loan scenarios to your clients Loan Amount Enters or solves for the initial loan amount or present value of a financial problem P amp I PITI Payment Total Payment Interest Only Payment Enters or solves for the periodic princi pal and interest P amp I payment Pressing QM a sec ond time in succession calculates the PITI payment P amp I plus property tax property insurance and mort gage insurance if entered The third press of QD computes the total payment PITI plus any entered expenses such as homeowner s association dues and other housing expenses The fourth press cal culates the interest only payment Enters or solves for the number of years Second press displays the number of periods You may enter a periodic term if you prefer by pressing the Emn amp Periodic keys e g 3 0 ED E instead of 3 0 G29 An entered term greater than 45 will be classified as periodic not annual Note Stored permanently until you change it or perform a Clear All D 3 6 QUALIFIER PLus IIIFx aD ea cmn am cn o aD e3 can amp Interest Enters or solves for the annual interest rate Second press gives the periodic rate Note Stored permanently until you change it Future
17. is based on whichever of the two ratios income or debt limits the buyer the most The Unrestricted Qualifying Loan Amount however is the higher loan amount This loan amount is based on whichever of the two ratios income or debt limits the buyer the least In other words whichever ratio will give the buyer the highest qualifying loan amount For this unrestricted loan amount the calculator will display the letters UNR for unrestricted in the display and the word INC or DEBT to indi cate what ratio side this loan amount was based from e g income or debt This restricted unrestricted qualifying loan comparison is useful to show clients what size loan they could qualify for if they paid off debt or increased income 3 Calculates the annual income required and allowable monthly debt for a desired loan amount or sales price based on the stored income and debt qualifying ratios and the entered e term e interest e price down payment or loan amount 4 Also finds buyer s actual income and debt ratios given both buyer and property data By default the first press of GZ displays the stored qualifying ratios and the second press calculates the buyer s actual ratios Qualify Based on 29 41 Stores additional Income and Debt ratios e g FHA VA and operates identically to the GZ key Default Income and Debt ratios for this key are 29 and 41 respectively Note You can store whatever ra
18. lets you instantly proceed to monthly pay ment calculations etc Cont d UserR s GUIDE 57 Cont d 4 When calculating Qualifying Loan Amount based on entered buyer s data term interest and stored qualifying ratios succes sive presses of the GD or GED keys give the following results e the first press of G2 or GD will display your stored ratios e the second press in succession will display the restricted maximum qualifying loan amount used in loan approval e the third press in succession will show the buyer s actual income and debt ratios e the fourth press will display the higher unrestricted qualify ing loan amount and e the last press will display the allowable monthly debt Note You can set your Qualifying Ratios to display first or last via the Preference Settings See page 22 5 When calculating Annual Income Required based on entered loan amount or sales price term interest and stored qualifying ratios the first press of GD or GD will display your stored ratios the second press in succession will display the Annual Income Required and the third press in succession will show the Allowable Monthly Debt 6 When calculating buyer s Actual Ratios based on entered bor rower data i e income and debt and property data i e loan amount sales price the first press of G20 or GED will display the stored qualifying ratios and the second press will calculate the buyer s a
19. to display The values are rounded using conventional 5 4 rounding You can do this prior to finding an answer or afterwards Press EMD followed by the number of decimal places you wish to display Shift 5 0 00000 cnma 0 0000 Shift 3 0 000 ceno 0 00 ceno 0 0 Gi 0 0 camo floating point To return to the standard two decimal place setting press GM 2 Note This setting will remain until you turn your calculator off perform a Clear All GD 3 or until you change it using the commands above You can select to permanently maintain your decimal place selection remains even after you turn the calculator off by selecting Hold Entry for decimal settings under Preferences on page 22 User s GUIDE 21 Preference Settings Your calculator has a Preference Mode which allows you to program the calculator to various settings For example it lets you store cer tain values permanently display certain values or show values in a specific order To access the Preference Mode press Eli then then keep pressing to toggle through the settings listed below Press the key to advance through the sub settings Use the amp key to back up within the sub settings To return the calculator to its default or factory set Preference Settings perform a total Reset see page 81 After i Keep Description Pressing Press to Advance Display within each category amp to Back up 1 Decimal Places
20. values To do this turn off the calculator hold down the amp key and then turn it back on Error Codes With an incorrect entry or answer beyond the range of the calculator the display will show one of the following error messages To clear an error simply press any key OFLO Number Too Large to Display DIV Error Attempted to Divide by Zero TVM Error Time Value of Money Error ENT Error Invalid Entry PPY Error Payments Per Year Error QL Error Qualifying Error User s GuipE 81 Auto Shut Off Your calculator is designed to shut itself off after about 8 12 minutes of non use Batteries e Qualifier Plus IIIFx 3430 Two LR 44 batteries e Qualifier Plus Ill Fx Desktop 43430 One 3 Volt Lithium CR 2032 battery Replacing the Battery ies Should your calculator display become very dim or erratic replace the battery ies Note Please use caution when disposing of your old battery as it contains hazardous chemicals Replacement batteries are available at most discount or electronics stores You may also call Calculated Industries at 1 775 885 4975 Battery Replacement Instructions e Qualifier Plus IIIFx 3430 To replace the batteries slide open the battery door at top backside of unit and replace with new batteries Make sure the batteries are facing positive side up e Qualifier Plus Ill Fx Desktop 43430 To replace the battery use a small Phillips head screwd
21. 0 00 The percent key has special applications for real estate profes sionals especially when figuring a commission amount Figuring Straight Percent Commission The commission for the listing office is 3 If the property sells for 259 650 what is the listing office s commission STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter sales price 275966 0 259 650 Multiply by commission 3B8 7 789 50 DO NOT CLEAR CALCULATOR What if the listing agent works on a 50 50 split with his or her bro ker What is the listing agent s share of this commission STEPS KEYSTROKES DISPLAY Multiply by 50 600038 3 894 75 18 QUALIFIER PLus IIIFx Reduction in Listing Price Discount A nervous seller has had her property on the market for just over four months listed at 175 500 Because she is anxious to move into a new home she wishes to reduce the listing price by 5 Calculate both the amount of reduction in dollars and the new lowered listing price STEPS KEYSTROKES DISPLAY Clear calculator On C 0 00 Enter sales price OMS amp OO 175 500 Subtract 5 amp 5 8 775 00 Find new listing price 166 725 00 Simple 1 Year Home Appreciation Add on Properties in your area have been going up in value about 6 per year If you purchase a 275 000 home today what will it be worth in one year assuming the same rate of appreciation continues STEPS KEYSTROKES DISPLAY Clear calculator 0
22. 00 Enter current value 2 7 6 Gh 275 000 Add 6 6 16 500 00 Find appreciated value 291 500 00 Note See page 43 for another example of future value or appreciation UserR s GuipE 19 Date Examples Using the key you can quickly solve common real estate date problems escrow or closing dates listing expiration dates and the number of days prepaid interest etc You enter a date as follows Numerical Month Numerical Day and two digit Numerical Year The date function lets you 1 add a number of days to a date to find a second date in the future 2 subtract a number of days from a date to find a second date in the past and 3 subtract one date from another date to find the number of days in between For exam ple if a 45 day escrow begins April 26 2007 what is the closing date and day STEPS KEYSTROKES DISPLAY Clear calculator On C 0 00 Enter month 48a 4 Enter day 268 4 26 Enter year 0 4 26 07 Add 45 days 45 8 SUN 06 10 07 Find the number of days to calculate prepaid interest due at closing if the escrow closing date is 10 14 07 and the first payment is due 11 1 07 STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter 1st payment date OMOed8e07 11 1 07 Subtract closing date to find number of days S0H0e8048078 18 00 20 QUALIFIER PLus IIIFx CALCULATOR SETTINGS Decimal Place Selection With the GM key you have the option of selecting the number of decimal places you d like
23. 34 QUALIFIER PLus IIlFx Amortization and Remaining Balance The amortization function is quick and simple It allows you to find total interest principal and remaining balance for an entire loan for an individual payment or individual year or any range of payments or range of years for fully or partially amortized loans It also lets you quickly compute the mortgage interest deduction as an esti mate for your clients Notes on Amortization 1 When you enter a range of payments using the Colon key you can find all three possible outputs Interest Principal and Remaining Balance without having to re enter the range each time Simply keep pressing the key to find the values You can also find Remaining Balance using the Gila key by specifying a year or range of years period or range of periods For example to find the remaining balance after the 10th year press 1 0 G9 CUED to find the remaining balance after the 10th period press 0 ED G3 Periodic Gi CID Entered ranges are inclusive so that a range of 1 to 5 would include both year 1 and year 5 Entering a numerical value or performing a math operation on the keypad will alter the values including the default settings for range of payments calculations It is therefore best to specify a range of payments or an individual payment before you calculate any of the above In some cases it is the practice to include a final regular P amp l pay
24. 8 interest The cost of getting the loan is quoted as 1 5 points and 550 in fees Mortgage insurance is not required What is the APR and total finance charges when these costs are included STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount 2 6 Gh Gen 250 000 00 Enter annual Interest rate int 8 00 Enter Term in years 3 0 Ei 30 00 Find monthly P amp I Payment GD run 1 834 41 Find Loan Costs Recall Loan Amount CO 6a 250 000 00 Find point cost IOIO 1 3 750 00 Add fees and find total 560068 4 300 00 Find APR cD o run 8 18 Find total finance charges 414 688 12 Find amount financed Int 245 700 00 Find total finance charges plus amount financed Int 660 388 12 Note Because APR is an interest calculation it may take several seconds to calcu late APR includes mortgage insurance if entered Total finance charges include mortgage insurance over the life of the loan to present a worst case scenario how ever most people can eliminate MI once a certain LTV is met USER S GUIDE 49 Prepaid Odd Days Interest and APR Find the monthly payment on a 100 000 loan at 8 25 annual interest and 30 year term Then find the amount of odd days inter est or prepaid interest due if the escrow closes on 7 21 03 and the first payment is due 8 1 03 STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount DO 0 GQ Ge 100 000 00 Enter annual Interest rate OAS a 8 25 Enter Te
25. 80 APPENDIX E 81 Default SOttingS tani e a a aaa aa aa a aaia a eais 81 E E E A A E A A AT AT 81 Eror CodeS ennn n na aa hi eee 81 Auto Shut Off eee ce ccceeceneeeeeneee cence eeeaeeeeeeeeeseaeeeseaeeseeeeeeeeaeeeeaes 82 Bate nes iiri sensi edie never NEEN EEA A 82 Repair and Retuln cccccececcceeesesneeeeeseeneeeeeeesnaeeeeesesaeeeeeeenaaees 83 Warranty eiai ar ten ia Ane eid 83 Legal NOtGSiiccciiasecss dasiccevetevntbdeadei bend faa dedizonensacns ARENE 85 Looking For New Id as ou eee eeeeseeeeeeeeeneeeeeeeeneeeeeeeesaeeeeeseeaes 85 INDEX fice feceats dates cocesd setae videctvected vesucucseccecvacats deusaes seas sauaeesstecepeheeuceet 86 4 QUALIFIER PLus IIlFx GETTING STARTED KEY DEFINITIONS Basic Operation Keys Off a e 0g ag Turns all power off The Memory and most financial registers are cleared If off turns power on If on a single press clears the last entry while a second press in succession clears all non permanent registers Clears Loan Amount Payment Price Down Payment Income Debt Expense and Mortgage Insurance MI unless MI is set to hold see Preference Settings Arithmetic operation keys Digits used for keying in numbers Triple zero key saves time when entering 000 values Backspace key deletes entries one digit at a time Decimal point Percent Four function x percent key See page 18 for examples Memory Adds the displayed number to t
26. A 0 00 Enter annual Income 6 0 C Ga 60 000 00 Enter monthly Debt 0 0 a 500 00 Enter monthly association dues 0 e 50 00 Enter annual Interest rate 6 2 5 6 25 Enter Term in years 3 30 00 Enter property tax rate 0 o o G GD 1 25 Enter property insurance rate 3 Gil 0 30 Enter mortgage insurance rate 0 4 5 Gp 9 0 45 Display Qual 1 stored Ratios GZD 28 00 36 00 Find Qual 1 Loan Amount GZ run 159 768 12 Find monthly P amp I Payment CD run 983 72 Find monthly PITI Payment GD 1 250 00 Find total monthly Payment CD 1 300 00 Find monthly interest only Payment 832 13 DO NOT CLEAR CALCULATOR STEPS KEYSTROKES DISPLAY Display Qual 2 stored Ratios GZ 29 00 41 00 Find Qual 2 Loan Amount ZB run 178 940 29 Find monthly P amp I Payment CD run 1 101 77 Find monthly PITI Payment GD 1 400 00 Find total monthly Payment QD 1 450 00 Find monthly interest only Payment 931 98 Notice that of course the qualifying loan amount is significantly higher using Qual 2 ratios 64 QUALIFIER PLus IIlFx Finding Income Required and Allowable Monthly Debt Using the 28 36 ratios how much income would a buyer need to finance a 250 000 home if they put 20 down What is the maxi mum allowable debt What is the down payment and loan amount What is the monthly payment Use 6 75 interest for 30 years Estimate property tax insurance rates of 1 5 and 0 25 respectively Clear mortgage insu
27. AUON cts aeaa eaa ATAR TERN 43 Retirement Savings Account Problem Future Value of an Initial Deposit or Lump SUM ceeeeceeeeeeeeeeeeeeeaeeeeeaeeeeeaeeeteaeeeteas 44 Retirement Savings Future Value of Monthly Investment Using Beginning Mode sesseeeseeeseeeeeeeeerererrrerrneerenene 44 Non Monthly Loan S aei erastea aae 45 Finding a Quarterly Payment cccceceeeeeeeeeeeseeeeeeeeeeteeeetes 46 Trust Deeds and Discounted Notes cceeceeeeeeeeeeeeeeeneees 46 Purchase Price of a Note Fully Amortized a 46 Finding the Yield on a Discounted Note eese 47 Finding the Value and Discount of a Trust Deed 48 APR and Total Finance Charges cccccccseeseseeeseteeessneeessaees 49 Finding APR and Total Finance Charges 49 Prepaid Odd Days Interest and APR neeese 50 Adjustable Rate Mortgages eccccceeesseeeeeeseeeeeeseeeneeeeeenaeees 51 ARM Payment Worst Case Scenario 52 ARM Payment Using Lifetime Cap cccccccccceeeteeeetteeeeees 53 Decreasing ARM Payment ccccceeeeseeeeeeeeeneeeeeeeseeeeeeeaes 54 Increasing and Decreasing ARM Payment 54 Estimated Income Tax Savings and After Tax Payment 55 Rent VS BUY o a a Aaa linia ee eatin ee 56 BUYER QUALIFYING cccscccsseeeeeeeeeeesneeeeeeeeeeseeeeenseeesnsesenseeeess 57 QUALIFYING EXAMPLES ccccccssseeeeeeeeeseeeeeeseeeeeeeeeneneeeneenees 59 Recalling Income Debt Qualifying Ratios
28. Adjustable Rate Mortgages ARMs APR and Total Finance Charges Bi Weekly Loans Trust Deeds investments Date Math Also Works as a Standard Math Calculator 1st and 2nd Trust Deeds 80 10 10 80 15 5 or Combo Loans APR including Mortgage Insurance Beginning End Mode Cash Flows Investment Analysis IRR NPV NFV Income Tax Savings Mortgage Interest Deduction Interest Only Payments Loan to Value LTV Odd Days Interest ODI amp Month Offset Rent vs Buy Retirement Savings USER S GUIDE 1 TABLE OF CONTENTS GETTING START ED reccert chet te eee ee cet eae 5 KEY DEFINITIONS oii ie foctviccte cocececisenhced eean eaaeo naa eeccerascterestcele 5 Basic Operation KeYS cccccecceeeeeeeeeeeeeneeeseneeeeeeeeseneeeseneeeeseees 5 Mortgage Loan TVM KeYS cccecceeeeeeeeeeeeeteeeeeseneeeseneeeeeaeees 6 Tax Insurance and Expense KeYS neeesser 10 Tax Savings Keys iienaa an annaia aaa a Baarak 11 Rent vs Buy KeYS ccceesseeceeeeeseeeeeeeeseeneeesessenseeseeeseneeneeneees 12 Qualifying KEYS iiinis aiaga eiaa T NTE naii 12 1st amp 2nd Trust Deeds Combo Loan KeyS cececeeeeeees 15 Gash FIOW KeYS nsteicd cl nee a taae a ion aeons 16 BASIC ARITHMETIC EXAMPLES cccccecsseeeeeeeeeeseeeseseeeeeneas 18 ASIA M tiC oeisio nren ceins ea a AEE aa aai aei 18 Percent Calculations cccccceeeseeeeeceeeeeeeeeeeneeeseeeeeeaeeeseseeetas 18 Figuring Straight Percent Commission
29. Comparison Values vs Fixed Rate Loan with Mortgage Insurance Find 1st 2nd combined blended interest rate run 7 23 Find equivalent interest rate of single fixed rate loan with MI run 7 61 Find total combined 1st 2nd payment 680 78 Find equivalent payment of single fixed rate loan with MI 706 97 Find monthly savings over fixed rate loan with MI 26 19 Find adjusted 2nd term if savings applied to 2nd TD run 14 23 Find 1st TD loan amount 88 888 89 Find 2nd TD loan amount 11 111 11 Find 1st TD monthly payment 591 38 Find 2nd TD monthly payment 89 40 Re display LTV 80 10 10 80 00 10 00 UserR s GuiIDE 69 Combo Loan 80 15 5 vs Fixed Rate Loan with Mortgage Insurance You d like to show your client the savings of a fixed rate Combo Loan 80 15 5 over that of a standard fixed rate loan with mortgage insurance You have the following parameters FIXED RATE COMBO LOAN ist TD 2nd TD Loan Amount FIXED RATE LOAN w MI Interest Term 30 year 30 year MI LTV 80 15 STEPS KEYSTROKES DISPLAY 1 Enter Fixed Rate Loan Values and Find Total Payment Clear calculator 0 00 Enter Loan Amount DOO a 100 000 00 Enter Down Payment Gia 5 00 Enter annual Interest rate 7 00 Enter Term in years 3 30 00 Enter MI mortgage insurance rate 0 5 Gi 9 0 50 Clear property tax rate 0 EB D 0 00 Clear property insurance rate 0 Eim 0 00 Solve for monthly P amp l Paym
30. END Displays ratio at end of sequence 7 Beginning or End Mode TYP END End Mode Default TYP BEG Beginning Mode USER S GUIDE 23 MEMORY Accumulative Memory Whenever the key is pressed the displayed value will be added to cumulative Memory This value will remain in Memory until cleared or when the calculator is turned off Other Memory functions FUNCTION KEYSTROKES Recall total in Memory ca Display and clear Memory Co a Subtract displayed value from Memory Shift J Replace Memory with displayed value aD a a The Memory is semi permanent that is it will only be cleared when you 1 turn off the calculator 2 press CD CA or 3 press Gi 3 Clear All Examples STEPS KEYSTROKES DISPLAY Store number into Memory 3 5 5 355 00 Add number to Memory _ 2 6 amp 255 00 Recall total in Memory co oD 610 00 Subtract from Memory 7 4 am 745 00 Recall total in Memory Rc 135 00 Replace Memory 5 0 em co 50 00 Recall and clear Memory E3 C 50 00 24 QUALIFIER PLus IIIFx Memory Storage Keys M0 M5 In addition to the standard cumulative Memory as described above your calculator has six independent Storage Registers MO through M5 that can be used to permanently store single non cumulative values These values will be held when your calculator is turned off and will only clear when a Clear All is performed via Gin o You can replace a value in o
31. Enter property tax rate 0 o 0 shit Hed 1 40 Enter property insurance rate 0 2 ED 0 20 Clear mortgage insurance rate 0 em 9 0 00 Enter monthly association dues 6 5 65 00 Display stored Qual Ratios GZ 28 00 36 00 Calculate actual Ratios zp run 22 62 28 12 Find sales Price 343 750 00 Find the monthly P amp l Payment Pmt 1 738 19 Find the monthly PITI Payment Pmt 2 196 52 Find the total monthly Payment Pmt 2 261 52 Should be set to zero in this case as the down payment is 20 to check down pay ment press GED again and it will read 20 00 66 QUALIFIER PLus IIlFx 1ST AND 2ND TRUST DEEDS COMBO LOANS Your calculator also figures Combo loans or 1st and 2nd Trust Deeds which are common financing options for clients with smaller down payments who want to avoid mortgage insurance The benefit of Combo loans over single fixed rate loans with mortgage insur ance is that the buyer can actually save money obtaining two loans vs a single larger loan requiring monthly mortgage insurance This calculator will find after entry of appropriate loan variables including 1st and 2nd TD interest and term the following loan val ues for 80 10 10 and 80 15 5 or any LTV loans Blended interest rate for 1st and 2nd TD and equivalent interest rate of fixed rate loan w mortgage insurance Combined payment for 1st and 2nd TD and equivalent pay ment for fixed rate loan w mortgage insurance Monthl
32. Flow amount is entered once C 3 and the frequency for this Cash Flow is set to 24 indicating that this amount is received for two years or 24 total payments Analysis This investment would bring an internal rate of return of 10 26 The NPV is over 2 000 resulting in a positive return on investment DO NOT CLEAR CASH FLOWS Cont d USER S GUIDE 79 Cont d Recalling and Replacing Cash Flows STEPS KEYSTROKES DISPLAY 1 Recall all cash flows and frequencies Initial Cash Flow cI C 0 225 000 00 1st Cash Flow C 1 1 000 00 1st Cash Flow frequency F 1 12 00 2nd Cash Flow C 2 1 100 00 2nd Cash Flow frequency F 2 12 00 3rd Cash Flow C 3 1 200 00 3rd Cash Flow frequency F 3 24 00 4th Cash Flow C 4 275 000 00 4th Cash Flow frequency F 4 1 00 2 Recall a specific cash flow in this example the first cash flow Recall 1st Cash Flow Gy C 1 1 000 00 3 Recall and replace a specific cash flow in this case the second cash flow Recall 2nd Cash Flow 2 3 C 2 1 100 00 Replace with new Cash Flow value of 1 150 OOS 0 GD Ge ea C 2 1 150 00 DO NOT CLEAR CASH FLOWS Recalling and Replacing Cash Flow Frequencies STEPS KEYSTROKES DISPLAY 1 Recall the first frequency ce emn F 1 12 00 2 Or recall a specific frequency in this example the second cash flow frequency 26m F 2 12 00 3 Recall and replace frequency of a cash flow a Recall 1st frequency C3 Gia F 1 12 00 b Replace frequency of 12 wit
33. Fx BUYER PRE QUALIFYING The Qualifying keys were designed specifically for mortgage lenders brokers for doing instant pre qualifications on the phone or in front of clients Real estate agents brokers can also quickly pre qualify clients so they can show them homes in their affordable price range The calculator gives you three types of qualifying answers 1 Loan Amount available given buyer s income and debt 2 Income required given loan amount or price down payment 3 Actual Ratios given both income debt and property data Here are some notes on qualifying using your calculator 1 The GD and keys are multi function smart keys In other words they deliver a variety of answers based on what is input and what is not The calculator will figure out which qualifying solutions should be displayed based on the qualifying variables you ve input 2 You can use both Qualifying keys Z and GB to demonstrate various loan qualifying comparisons or scenarios e g conven tional vs FHA loans Simply store different income and debt qualifying ratios For example the GZ key defaults to 28 Income and 36 Debt for conventional loan qualifying The GED key defaults to 29 Income and 41 Debt However you may store any ratios you want into these keys or change these ratios at any time 3 A calculated Qualifying Loan Amount is automatically stored in the Loan Amount register replacing any existing Loan Amount value This
34. KES DISPLAY Enter Term in years 3 30 00 Recalculate value in 30 years Shift 613 543 75 Access Beginning Mode via Preference Settings GD press seven times TYP BEG Set back to End Mode TYP END Calculator must be set to default of 12 periods per year for compounding monthly If it isn t enter D Ignore the negative sign in this case it is a positive value Non Monthly Loans Most residential real estate loans are based on a monthly payment schedule However if you have a non monthly loan you must change the number of payments per year using a two key sequence ED For example here s how to set your calculator to four pay ments per year STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter of payments year 4 ED S 4 00 To recall the currently stored number of payments STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Recall of payments yea GS 4 00 IMPORTANT To return payments per year to the default value of 12 perform the following steps STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter of payments year M 2 ED S 12 00 User s GUIDE 45 Finding a Quarterly Payment Find the quarterly P amp I payment on a ten year loan of 15 000 with an annual interest rate of 12 STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Set to four payments year 4 i S 4 00 Enter Loan Amount OS Gi ca 15 000 00 Enter Term in years o 0 Gi 10 00 Enter annual Interest rate
35. OOS GD 7 1 50 Set insurance rate 00 6 GD 0 25 Set mortgage insurance rate 5 E0 9 0 50 Recalling Tax and Insurance Percent Rates Recall your stored rates STEPS KEYSTROKES DISPLAY Recall tax rate 7 1 50 Recall insurance rate c 0 25 Recall mortgage insurance rate 9 0 50 Note To change these values simply enter new ones Or turn the calculator off then on and the values will be cleared unless they are programmed to hold under Preference Settings see page 22 Setting Tax and Insurance Dollar Enter annual property taxes estimated at 5 500 property insurance at 350 and mortgage insurance at 600 STEPS KEYSTROKES DISPLAY Set annual taxes 6 0 0 GM 5 500 00 Set annual insurance 60 Em 350 00 Set annual mortgage insurance 6 0 0 Gin 9 600 00 Note Again to review stored values press and the applicable key e g 7 32 QUALIFIER PLus IIlFx Calculating Tax and Insurance Percent or Dollar If loan variables are entered in addition to tax and insurance per centage rates or dollar values the respective dollars values or per centage rates can be computed by simply pressing the applicable keys a second time For example enter an annual property tax rate of 1 5 a property insurance rate of 0 25 and a mortgage insur ance rate of 0 50 Then enter a sales price of 250 000 10 down a term of 30 years and an interest rate of 8 Calculate the loan payments and annual tax and insurance dollar a
36. PLAY Set Month Offset to July aD awm 7 00 Enter tax bracket 2 8 Gi gp 28 00 Find annual tax savings Ga 1 887 16 Find monthly tax savings Gad 314 53 Find after tax Payment GD 931 95 Return Month Offset to January OD a 1 00 For desktop model press key to perform this function User s GUIDE 55 Rent vs Buy If your client is currently renting a home for 1 250 month what is the comparable home sales price and loan amount that he or she could afford What is the estimated annual and monthly income tax savings if they were to finance this mortgage The current rate is 7 5 on a 30 term fixed rate mortgage and your client can afford to put 10 down You estimate local taxes at 1 25 and property insurance at 0 35 Your client is in the 28 tax bracket STEPS KEYSTROKES DISPLAY Clear calculator On C 0 00 Enter annual Interest rate C6 0 7 50 Enter Term in years 3 30 00 Enter Down Payment 1 0 D 10 00 Enter tax bracket 2 8 Gi 28 00 Enter property tax rate 0 o o G Shift 1 25 Enter property insurance rate 3 E 0 35 Enter current monthly rent to find comparable home price M60 Gi GZ run 216 781 98 Find comparable loan amount 195 103 78 Find monthly PITI payment 1 653 24 Find annual tax savings 4 838 84 Find monthly tax savings 403 24 Re display tax bracket 28 00 Re display monthly rent 1 250 00 For desktop model press key to perform this function 56 QUALIFIER PLus IIl
37. QUALIFIER PLUS IIFX ADVANCED RESIDENTIAL REAL ESTATE FINANCE CALCULATOR with CASH FLOW and COMPLETE BUYER QUALIFYING Qoare Pose Mirs a CALCULATED J77 INDUSTRIES Putting answers at your fingertips since 1978 Introducing the QUALIFIER PLus IIIFx Mortgage Loan Calculator The new QUALIFIER PLus IIIFx was custom designed for mortgage lenders and residential real estate pro s With the push of a few but tons it will quickly pre qualify prospective buyers and solve hundreds of mortgage loan problems It also operates as an easy to use financial calculator with user friendly cash flow keys for analyzing real estate investments and TVM keys to analyze retirement savings scenarios It s the most complete and easy to use real estate and finance calculator on the market Features New Easy and Complete Buyer Qualifying Find Qualifying Loan Amount Income Required and Maximum Allowable Debt Use Two Qualifying Ratios at Once to Compare Different Loans e g conventional vs FHA VA loans Find the Restricted and Unrestricted Qualifying Loan Amount Instant P amp I PITI and Total Payment Interest Only Payment Expanded Tax and Insurance Capabilities Built in Sales Price and Down Payment Works in Annual Term and Interest Flexible what if Loan or TVM Calculations Finds Loan Amount Term Interest or Payment Future Value and Appreciation Complete Amortization Remaining Balances Balloon Payments
38. RFOR MANCE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PUR POSE AS A RESULT THIS PRODUCT INCLUDING BUT NOT LIMITED TO KEYSTROKE PROCEDURES MATHEMATICAL ACCURACY AND PREPROGRAMMED MATERIAL IS SOLD AS IS AND YOU THE PUR CHASER ASSUME THE ENTIRE RISK AS TO ITS QUALITY AND PER FORMANCE IN NO EVENT WILL CI BE LIABLE FOR DIRECT INDIRECT SPECIAL INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM ANY DEFECT IN THE PRODUCT OR ITS DOCUMENTATION The warranty disclaimer and remedies set forth above are exclusive and replace all others oral or written expressed or implied No Cl dealer agent or employee is authorized to make any modification extension or addition to this warranty Some states do not allow the exclusion or limitation of implied warranties or liability for incidental or consequential damages so the above limitation or exclusion may not apply to you This warranty gives you specific rights and you may also have other rights which vary from state to state 84 QUALIFIER PLus IIlFx Legal Notes This equipment has been certified to comply with the limits for a Class B computing device pursuant to Subpart J of Part 15 of FCC rules Software copyrighted and licensed to Calculated Industries Inc by Real Estate Master Technologies LLC 2007 User s Guide copyrighted by Calculated Industries Inc 2007 QUALIFIER PLUS and CALCULATED INDUSTRIES are registered trade marks of Calculated Industr
39. UALIFYING 57 CALCULATOR SETTINGS 21 CASH FLOW EXAMPLES 76 Cash Flow Keys 16 Combo Loan 80 10 10 vs Fixed Rate Loan with Mortgage Insurance 68 Combo Loan 80 15 5 vs Fixed Rate Loan with Mortgage Insurance 70 Combo Loan Entering New LTV 72 Date Examples 20 Decimal Place Selection 21 Decreasing ARM Payment 54 Default Settings 81 Error Codes 81 Estimated Income Tax Savings and After Tax Payment 55 EXAMPLES 27 Figuring Straight Commission 18 Finding Loan Amount Based on Sales Price and Down Payment 30 Future Value 43 Income Required and Allowable Monthly Debt 65 Income Debt Qualifying Ratios Recalling 59 Increasing and Decreasing ARM Payment 54 Interest Rate Finding an 28 Interest Only Payment 34 KEY DEFINITIONS 5 Loan Amount Finding 28 MEMORY 24 Memory Storage Keys MO M5 25 Monthly Mortgage P amp I Payment 28 Mortgage Loan TVM Keys 6 MORTGAGE LOANS TIME VALUE OF MONEY TVM EXAMPLES 27 Non Monthly Loans 45 Odd Days Interest and APR 50 Paying Off a Loan Early Making Larger Payments 29 Calculations 18 PITI Payment Tax and Insurance Entered as 34 Preference Settings 22 86 QUALIFIER P_us IIlFx Qualifying Comparison 64 QUALIFYING EXAMPLES 59 Qualifying Keys 12 Qualifying Loan Amount and Sales Price Finding 60 Qualifying Loan Amount and Sales Price Complete Example 61 Quarterly Payment Finding a 46 Real Estate Investment
40. Value FV Enters or solves for the future value of a financial problem Sales Price Enters or calculates Sales Price based on the entries of Loan Amount or equivalent mortgage components and Down Payment Down Payment Enters in either percent or dol lars or calculates Down Payment based on the entries of Loan Amount or equivalent mortgage components and Sales Price A second press changes the entered down payment from a dollar figure to a percent or vice versa Note Any number under 100 is assumed to be a percent down payment You do not have to label the value as a percent Loan to Value LTV Calculates the loan to value percent when a Down Payment and Sales Price Loan Amount and Down Payment or Loan Amount and Sales Price are entered Also calculates the above dolar values if an LTV percent and one of the above values are entered e g entered Sales Price and LTV percent will calculate Down Payment and Loan Amount Annual Percentage Rate APR Calculates APR for fixed rate loans only based on the entry of points and or non recurring loan fees paid at initiation It also calculates total finance charges monthly mort gage insurance and PIMI payment based on the entry of mortgage insurance via the EAD 9 keys Periodic Used to specify a mortgage component Term or Interest Income or Amortization Remaining Balance value as per period rather than per year For example 3 6 ED E3 ente
41. at no charge THE WARRANTY WILL NOT APPLY TO THE PRODUCT IF IT HAS BEEN DAMAGED BY MISUSE ALTERATION ACCIDENT IMPROPER HANDLING OR OPERATION OR IF UNAUTHORIZED REPAIRS ARE ATTEMPTED OR MADE SOME EXAMPLES OF DAMAGES NOT COVERED BY WAR RANTY INCLUDE BUT ARE NOT LIMITED TO BATTERY LEAKAGE BENDING BLACK INK SPOT OR VISIBLE CRACKING OF THE LCD WHICH ARE PRESUMED TO BE DAMAGES RESULTING FROM MISUSE OR ABUSE To obtain warranty service in the U S please go to the website A repaired or replacement product assumes the remaining warranty of the original product or 90 days whichever is longer USER S GUIDE 83 Non Warranty Repair Service U S A Non warranty repair covers service beyond the warranty period or service requested due to damage resulting from misuse or abuse Contact Calculated Industries at the number listed above to obtain current product repair information and charges Repairs are guaranteed for 90 days Repair Service Outside the U S A To obtain warranty or non warranty repair service for goods purchased out side the U S contact the dealer through which you initially purchased the product If you cannot reasonably have the product repaired in your area you may contact Cl to obtain current product repair information and charges including freight and duties Disclaimer Cl MAKES NO WARRANTY OR REPRESENTATION EITHER EXPRESS OR IMPLIED WITH RESPECT TO THE PRODUCT S QUALITY PE
42. ctual ratios 7 You can use the Expense GM 7 Tax 10 8 Ins and ET 9 Mig Ins keys as optional variables affecting buyer qual ifying and PITI payments Tax and Insurance rates are calculat ed from the Sales Price Mortgage Insurance is calculated from the Loan Amount 58 QUALIFIER PLus IIlFx QUALIFYING EXAMPLES Most of the examples in this section will be based on the default Income and Debt Ratios of 28 and 36 respectively which are stored in the GD key Recalling Income Debt Qualifying Ratios Recall stored 28 36 and 29 41 ratios STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Recall Qualifying Ratios 1 C3 GZ 28 00 36 00 Recall Qualifying Ratios2 E3 GED 29 00 41 00 Storing New Income Debt Qualifying Ratios Enter and permanently store new qualifying ratios of 30 for Income and 38 for Debt in GED STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Set Qualifying Ratios 30 8 O 6 GD 30 00 38 00 Return ratios to 28 36 2 8 3 D 28 00 36 00 Note Your ratios will be permanently stored and will remain even after your calcula tor is turned off However if you have changed the Qualifying Ratios from the default of 28 36 Qual 1 or 29 41 Qual 2 you can re enter these ratios at any time User s GUIDE 59 Finding Qualifying Loan Amount and Sales Price Simple Example Excluding Tax Insurance Given an interest rate of 7 5 a term of 30 years and the stored 28 36
43. e Used as a separator for entering dates ARM adjustments qualifying ratios Combo loan 1st 2nd interest and terms and for entering amortization ranges and interest term adjustments Month Offset Mo Offset Used to set the first month of payment if other than January Odd Days Interest ODI Calculates the prepaid interest or simple interest accumulated based on a 360 day year during the days before the first loan payment is made using the interest rate stored in the Interest register 8 QUALIFIER PLus IIIFx ARM can g cn o can o Adjustable Rate Mortgage Calculates the pay ment and re amortizes a fully or partially amortized Adjustable Rate Mortgage based on the inputs of both an Interest Adjustment and a Term Adjustment which are entered using the Colon key Interest Adjustment Term Adjustment For example an ARM which increases 1 every year is entered 1 B D Gy an ARM which decreases 1 per year is entered O Gi Gi ARM rates are stored permanently Lifetime Interest Cap Cap Sets the lifetime interest cap for ARMs by entering the maximum interest increase This is a permanent setting To clear set the cap back to zero 0 ED Bi Weekly Bi Wkly Converts a regular monthly loan to a Bi Weekly loan where the buyer may real ize significant interest savings After loan variables are entered pressing Gil displays the reduc tion in term The second press of
44. e 4th adjustment An M for maximum will appear at the bottom of the display once the Cap is reached Be sure to set the Cap back to 0 by pressing G2 before starting a new ARM problem UserR s GUIDE 53 Decreasing ARM Payment Calculate the initial monthly P amp l payment on a 30 year 250 000 ARM loan at 5 interest and then find the second and third years adjusted payments if the loan s interest rate decreases 1 at the end of each year STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount 2 6 Gh GH 250 000 00 Enter Term in years 3 30 00 Enter annual Interest rate 5 00 Find initial monthly P amp l Payment cD run 1 342 05 Enter ARM parameters 0 8 D Em 1 00 1 00 Find 1st lower ARM payment ARM 1ARM 1 197 01 Find 2nd lower ARM payment ARM 2 ARM 1 064 20 For second and third year payments Increasing and Decreasing ARM Payment Find the ARM payments for a 300 000 30 year ARM loan that starts out at 5 but increases 1 after six months and then decreases 1 5 after an additional 12 months STEPS KEYSTROKES DISPLAY Clear calculator a Chia 0 00 Enter Loan Amount 3 0 Gh eA 300 000 00 Enter Term in years 3 0 e 30 00 Enter annual Interest rate 5 5 00 Find initial monthly P amp l Payment cD run 1 610 46 Enter 1st ARM adjustment OG 1 00 0 50 Find higher ARM payment run 1ARM 1 796 41 Enter 2nd ARM adjustment EP 1 50
45. ent STEPS KEYSTROKES DISPLAY Enter your desired yield 7 17 00 Compute value of mortgage 59 243 35 Subtract from Memory Shift 59 243 35 Compute discount recall memory ca M 15 756 65 Clear memory a a 15 756 65 Note Pressing or turning the calculator B will clear the value stored in Memory 48 QUALIFIER PLus IllFx APR and Total Finance Charges Calculating the Annual Percentage Rate APR and Total Finance Charges TFC is performed in two steps 1 you set up the loan just like any other problem that is enter three known variables and solve for the fourth and 2 combine points and fees and press Gil CD APR to solve APR If you continue to press A the calculator will also display the total finance charges a third press will display total principal paid and a fourth press will display total finance charges plus principal total cost of loan If mortgage insurance is entered your calculator will include that expense into APR and total finance charges as well as calculate the periodic mortgage insurance dollar amount and PIMI principal inter est mortgage insurance payment Note APR for non real estate loans such as for autos and boats that compound interest based upon 365 days per year cannot not be solved using this function as calculations are based on 360 days per year Finding APR and Total Finance Charges You are financing a mortgage of 250 000 for 30 years at a nominal or quoted rate of
46. ent run 665 30 Solve for monthly PITI Payment with MI Pmt 706 97 2 Enter Combo Loan Values Enter 1st TD Interest Term 8 6 0 Ea 7 00 30 00 Enter 2nd TD Interest Term 9 8 5 0 Em 9 00 30 00 Cont d 70 QUALIFIER PLus IIIFx Cont d STEPS KEYSTROKES DISPLAY 3 Find 80 15 5 Combo Loan and Comparison Values vs Fixed Rate Loan with Mortgage Insurance Find 1st 2nd blended interest rate Shift run 7 33 Find equivalent interest rate of single fixed rate loan with MI run 7 61 Find total combined 1st 2nd payment 687 30 Find equivalent payment of single fixed rate loan with MI 706 97 Find monthly savings over fixed rate loan with MI 19 67 Find adjusted 2nd term if savings applied to 2nd TD run 18 36 Find 1st TD loan amount 84 210 53 Find 2nd TD loan amount 15 789 47 Find 1st TD monthly payment 560 25 Find 2nd TD monthly payment 127 05 Re display LTV 80 10 10 80 00 15 00 User s GuipE 71 Combo Loan Entering a New LTV You d like to show your client the savings of a fixed rate Combo Loan 90 5 5 over that of a standard fixed rate loan with MI You have the following parameters FIXED RATE FIXED RATE COMBO LOAN LOAN w MI ist TD 2nd TD Loan Amount 100 000 100 000 Interest 7 7 9 Term 30 30 year 30 year MI 5 LTV 95 90 5 STEPS KEYSTROKES DISPLAY 1 Enter Fixed Rate Loan Values and Find Total Payment Clear calculator 0 00 Enter Loan A
47. er year i e 26 Bi Weekly payments is like making 13 payments year these kinds of loans can amount to large interest savings and a sub stantial reduction in the time it takes to pay them off You begin solving these problems by setting up the initial monthly loan and then pressing Gi EZB The first press of displays the Bi Weekly term the second press shows the total interest savings over the entire loan a third press calculates the total interest paid a fourth press shows the total principal paid and a fifth press shows the total P amp I Payments Press the GD key to find the Bi Weekly pay ment Bi Weekly Term Reduction and Payment Find the monthly P amp I payment on a 30 year 275 000 mortgage at 5 88 annual interest Then convert it to a Bi Weekly and find out how many years it will take to pay off this loan the total interest sav ings the total interest and principal paid as a comparison to the regular loan and the Bi Weekly payment STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount 2 0 6 GQ GH 275 000 00 Enter Term in years 3 30 00 Enter annual Interest rate 5 Int 5 88 Find monthly P amp l payment GD run 1 627 61 Display amortization period 1 360 Find total interest paid Amort 310 938 79 Re display total principal 275 000 00 Find total P amp I paid 585 938 79 Cont d 42 QUALIFIER PLus IIlFx Cont d Now Solve for the Bi Weekly Loan and Compare Interest Savings and
48. est and how much principal you ll pay in the first and sec ond payments Note Use the Gi keys to specify payments periods STEPS KEYSTROKES DISPLAY Clear calculator a Cis 0 00 Enter Loan Amount OMS Gi Gh 175 000 00 Enter annual Interest rate 8 5 6 85 Enter Term in years 3 30 00 Find monthly P amp I Payment CD run 1 146 70 Enter Payment 1 0 Een amp am run 1 1 Find interest in Payment 1 998 96 Find principal in Payment 1 147 75 Find P amp in Payment 1 1 146 70 Find remaining balance after Payment 1 174 852 25 Find remaining term after Payment 1 29 92 Find mortgage interest deduction in Payment 1 279 71 Display Payment 2 run 2 2 etc sequence repeats for each payment DO NOT CLEAR CALCULATOR For the same loan find the amount of principal and interest paid in the 36th payment Also find the total payment remaining balance and remaining term STEPS KEYSTROKES DISPLAY Enter Payment 36 3 6 ED am run 36 36 Find interest in Payment 36 966 39 Find principal in Payment 36 180 32 Find P amp I in Payment 36 1 146 70 Find remaining balance after Payment 36 169 113 79 Find remaining term after Payment 36 27 00 Note Payments are rounded to the nearest whole cent therefore the penny difference Note For desktop model press to perform this function 40 QUALIFIER PLus IIlFx Amortization List for a Range of Payments For a
49. eys for performing real estate investment or cash flow analysis Cash Flow Entry The Cash Flow key can store up to 20 sequential semi permanent cash flows including an Initial Investment along with their corre sponding Frequencies The Cash Flow numbering begins at zero C is displayed and ends at 19 C 19 is displayed for a total of 20 individual Cash Flows The first Cash Flow C 0 is the Initial Investment and must be entered as a negative value to be identified as a cash outlay Note If there is no initial investment enter zero for Cash Flow Zero C 0 Cash Flow Frequency Each cash flow has a corresponding frequency to identify the num ber of consecutive occurrences for that Cash Flow default is 1 Because the first Cash Flow is assumed to be the initial investment the frequency remains at one and cannot be changed Frequencies are numbered similar to Cash Flows F 1 through F 19 Frequencies are entered via Gili G9 When entering a Cash Flow you can specify if the Cash Flow will occur multiple times for a con secutive period For instance if you expected to receive a payment for the same amount e g 500 for twelve months consecutively you would enter your 500 cash flow and then enter in 12 for its fre quency i e number of consecutive occurrences Delete Modify Cash Flows To delete all Cash Flows press Gili 6 This does not affect any other stored values or Preference Settings To mod
50. first payment of a loan begins in May How much total interest and principal will you pay on a 30 year 90 000 loan at 8 interest during the first year The second year Third year etc First find the monthly P amp I payment to set up this loan Note The mortgage interest tax deduction is based on the default tax bracket of 28 unless you have changed it via Gi Calculator will automatically advance to the next year upon subsequent presses of CED STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Set Month Offset to May Gi D 5 00 Enter Loan Amount 9 0 Gh Ce 90 000 00 Enter annual Interest rate int 8 00 Enter Term in years 3 0 GH 30 00 Find monthly P amp I Payment GD run 660 39 Enter Year 1 run 1 8 Find total interest in Year 1 4 788 58 Find total principal in Year 1 494 53 Find principal interest in Year 1 5 283 10 Find remaining balance at the end of Year 1 89 505 47 Find remaining term 29 33 Find mortgage interest tax deduction in Year 1 1 340 80 Display next year Year 2 run 9 20 etc sequence repeats for each year Return Month Offset to 1 M EB Ga 1 00 Note Payments are rounded to the nearest whole cent therefore the penny difference Note Remember to reset Month Offset to 1 Check this setting by pressing C2 Gh UserR s GUIDE 39 Amortization List for Individual Payment s For a 175 000 loan at 6 85 interest for 30 years find out how much inter
51. h a frequency of 6 i e six months 6 ED CI Em F 1 6 00 To modify an existing cash flow or frequency first recall the cash flow or frequency to be modified e g D GD displays cash flow 1 enter the new value to be stored in place of the recalled value and then store the new value by using the Stor function E CD for storing a new cash flow value or ii C3 Gi for storing a new frequency 80 QUALIFIER PLus IIIFx APPENDIX Default Settings Performing a total Reset see below will return the calculator to the following default settings e Two Fixed Decimal Places e 12 Periods per Year Reset to 12 Upon e Property Tax Insurance Values Cleared Upon e Mortgage Insurance Values Cleared Upon e Amortization Range Specified Year Ent Ent e Qualifying Ratios Displayed 1st e Month Offset to January 1 e Tax Bracket 28 e Qual 1 Ratios 28 36 e Qual 2 Ratios 29 41 e Combo Loan 1st 2nd LTV 80 10 80 15 e End Mode Reset Manual Reset If your calculator s display should ever freeze or lock up press Reset a small hole located to the left of the key to perform a total reset It is recommended you use a straightened paper clip as the hole is extremely small Keystroke Reset Returning the Calculator to its Original Factory Settings You may at times want to reset your calculator to its factory settings e g reset all registers and Preference Settings to their original default
52. he cumulative Memory Pressing Gil M will subtract the displayed value from Memory Pressing Rcl recalls and displays the Memory contents Pressing C3 EJ displays and clears the Memory See page 24 for details Recall Recalls and displays the stored values in most keys functions such as the TVM keys pay ments per year etc e g CD CD Also used for Memory functions Works with other keys to set or activate second functions it will perform the function printed above the key on the calculator s face Also used to set the number of displayed decimal places see Decimal Place Selection on page 21 USER S GUIDE 5 Change Sign Changes the sign of the dis played value from positive to negative or vice versa Clear All Clears all entered values and returns any stored values to their default settings Use this only with caution as it will reset ratios periods per year etc back to their defaults see Appendix on page 81 for a list of these settings Note Clear All will not affect any changes made to Preference Settings with the exception of Payments Year and Decimal Places which are returned to their defaults unless you perform a Reset see page 81 Preferences Prefs Activates the Preference Mode where you can select custom settings see page 22 Mortgage Loan TVM Keys The following keys let you solve Time Value of Money TVM prob lems such as finding a loan payment term
53. ies Inc ALL RIGHTS RESERVED Looking For New Ideas Calculated Industries a leading manufacturer of special function calculators and digital measuring instruments is always looking for new product ideas in these areas If you have an idea or a suggestion for improving this product or User s Guide please submit your comments online at www calculated com under Contact Us Product Idea Submittal Agreement Thank you _ CALCULATED INDUSTRIES Putting answers at your fingertips since 1978 a4 4840 Hytech Drive Carson City NV 89706 U S A 1 800 854 8075 Fax 1 775 885 4949 E mail info calculated com www calculated com UserR s GUIDE 85 INDEX 1ST AND 2ND TRUST DEEDS COMBO LOANS 67 1st 2nd TD Combo Loan Keys 15 Actual Qualifying Ratios Solving for 66 Adjustable Rate Mortgages 51 Amortization and Remaining Balance 35 Amortization List for a Range of Payments or Years 41 Amortization List for Individual Payment s 40 Amortization List for Individual Year s Using Next Feature 38 Amortization List for Individual Year s Using Month Offset 39 Appendix 81 Appreciation 43 Appreciation for a Home Add on 19 APR and Total Finance Charges 49 ARM Payment Using Lifetime Cap 53 ARM Payment Worst Case Scenario 52 Auto Shut Off 82 Balloon Payment 37 BASIC ARITHMETIC EXAMPLES 18 Basic Operation Keys 5 Batteries 82 Bi Weekly Loans 42 BUYER Q
54. ify an existing Cash Flow or Frequency do the following 1 First recall the Cash Flow or Frequency to be modified e g D E displays Cash Flow 1 2 Enter the new value to be stored in place of the recalled value 3 Store the new value by using the Stor function a em a for storing a new cash flow value or b Gi emn for storing a new frequency 76 QUALIFIER PLus IIIFx IRR NPV and NFV Functions The B key is multifunctional and consecutive presses calculate e the annual Internal Rate of Return IRR e the Net Present Value NPV of the entered cash flows based on an entered desired Rate of Return and the stored Payments per Year default 12 e the Net Future Value and e re display of the entered Rate of Return Note If you wish to skip directly to the NPV calculation press GD G2 The desired Rate of Return is entered prior to performing the calcu lation as shown in the following examples or can be stored in the key If a desired Rate of Return is not entered prior to perform ing the IRR NPV and NFV calculations then the stored Interest Rate is used as the desired Rate of Return See the following examples for entry of Cash Flows and Frequencies and IRR NPV and NFV calculations Note The last example provides instructions on how to modify or recall Cash Flows and Frequencies UserR s GUIDE 77 Calculating IRR NPV and NFV for Annual Cash Flows A real estate investor wishes to pu
55. ifying ratios What are the buyer s actual income and debt ratios What does the unrestricted loan amount calculate to and which side is it based on e g buyer s income or debt What is the buyer s maximum allowable debt STEPS KEYSTROKES DISPLAY Find actual Ratios D run 22 76 36 00 Find unrestricted Loan Amount D UNR 170 870 75 LA INC Find maximum allowable monthly Debt Qual 1 453 33 Note The INC tells you this unrestricted Qualifying Loan Amount is based on the buyer s Income Ratio therefore the restricted Qualifying Loan Amount is based on the buyer s Debt Ratio This means that if they pay off their monthly debt to 453 month or lower as seen in allowable debt calculation they may qualify for a mortgage of approximately 170 000 or more and the 175 000 home putting approximately 4 5K down UserR s GUIDE 63 Qualifying Comparison Comparing 2 Different Loans or Ratios at Once Given a buyer s annual income of 60 000 500 in long term monthly debt estimated monthly homeowner s association dues of 50 an interest rate of 6 25 and term of 30 years what loan amounts can they qualify for based on both 28 36 and higher 29 41 ratios Also find the corresponding total monthly payment for each Estimate property tax insurance rates of 1 25 and 3 respectively and a mortgage insurance rate of 45 STEPS KEYSTROKES DISPLAY Clear calculator a C
56. lculate monthly P amp l Payment with MI Cp Go run 542 94 Cont d 74 QUALIFIER PLus IIIFx Cont d STEPS KEYSTROKES DISPLAY 4 Enter Combo Loan Values Enter 1st TD Interest Term 6 8 0 0 3 6 00 30 00 Enter 2nd TD Interest Term BON ca 8 00 30 00 5 Solve Combo Loan for comparison Find 1st 2nd blended interest rate run 6 23 Find equivalent interest rate of financed MI loan run 6 06 Find total combined 1st 2nd TD payment 553 02 Find equivalent payment of of financed MI loan 542 94 Find Combo monthly savings over financed MI loan 10 08 Note the Financed MI is better when compared to the Combo loan with a monthly savings of 10 08 DO NOT CLEAR CALCULATOR What happens if you compared to a 20 year 2nd Trust Deed at a rate of 8 Typically the monthly payment savings will be greater STEPS KEYSTROKES DISPLAY 7 Enter new Interest Term for 2nd TD 8 2 0 ED a 8 00 20 00 8 Solve Combo Loan for comparison Find 1st 2nd blended interest rate run 6 18 Find equivalent interest rate of financed MI loan run 6 06 Find total combined 1st 2nd TD payment 563 28 Find equivalent payment of of financed MI loan 542 94 Find Combo monthly savings over financed MI loan 20 34 Note the Financed MI is still better when compared to the Combo loan with a month ly savings of 20 34 USER S GUIDE 75 CASH FLOW EXAMPLES Your calculator has easy to use cash flow k
57. ll the value STEPS KEYSTROKES DISPLAY Store value in M11 DQANOGDAI M 11 350 00 Turn off and then turn on 0 00 Recall value stored in M11 GC M 11 350 00 Note Repeat the above procedure for registers M12 M19 using digits 2 9 Note To clear all above values stored in Memory press GD 3 26 QUALIFIER PLus IIIFx EXAMPLES MORTGAGE LOANS TIME VALUE OF MONEY TVM 1 The basic loan keys Gi GD and work just like you would say them For example if you want to borrow 100 000 for 30 years at 10 interest just enter those three known variables and press the key for the unknown fourth vari able Ga 2 When calculating future value problems enter the present value into the key 3 Financial values may be entered in any order you want Entered values for Term and Interest are permanently stored they do not clear when the calculator is turned off 5 The calculator s default setting is 12 payments per year for monthly loans 6 It is good practice to press twice after completing a finan cial problem to ensure that you have cleared the previous and Gi registers 7 When solving for a financial component the calculator may dis play the word run in the display Solving for interest may take several seconds up to 15 while the word run displays 8 Once you have calculated an answer for example a payment you can go back and change any financial variable and recalcu late y
58. loan amount Note Tax and Insurance entered as dollar amounts will remain fixed even if sales price or loan amount is changed However if entered as a percent of sales price or loan amount these items will automatically be re calculated if sales price or loan amount is changed Expense Used for calculating Total Payment and Qualifying Enters monthly housing expense e g homeowner s association dues maintenance and utilities Tax Savings Keys a Ga Estimated Income Tax Savings Tax Svgs Calculates an estimated annual income tax savings for a mortgage based on entered loan variables including property tax mortgage interest and tax bracket You may use the stored Tax Bracket or enter a tax bracket prior to pressing Gila CD Gi to display the estimated annual income tax savings the third consecutive press of Ga will display the monthly tax savings and the fourth press will display the estimated after tax or net mortgage payment Note This function is different from the mortgage interest deduc tion figured in the Amortization calculation as it also includes property tax for a total estimated tax savings and only provides an annual estimate not an estimate for a specified range See the key definition on page 8 for details DESKTOP MODEL ONLY Sas Your calculator has a dedicated Tax Savings key that operates as identified above User s GuipE 11 Rent vs Buy Keys cn az Rent vs
59. ment 1 0 0 Gi 1 500 00 Find Loan Amount 208 370 81 Enter new Interest rate OS 0 7 50 Find new Loan Amount aan 214 526 44 Finding the Interest Rate Find the interest rate on a mortgage where the loan amount is 98 500 the term is 30 years and the payment is 1 150 a month STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount 9 8 5 O CH 98 500 00 Enter Term in years 3 30 00 Enter monthly P amp I Payment Gay 1 150 00 Find annual Interest rate D run 13 78 Find periodic Interest rate D 1 15 28 QUALIFIER PLus IIIFx Finding the Term of a Loan How long does it take to pay off a loan of 15 000 at 10 interest if you make payments of 200 each month STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount 6 Ge Ci 15 000 00 Enter annual Interest rate D 0 10 00 Enter monthly Payment 2 CD 200 00 Find Term in years run 9 85 Find periodic Term 118 19 Paying Off a Mortgage Earl Making Larger Payments How long does it take to pay off a 30 year fixed rate mortgage of 150 000 at 8 5 interest if you add an extra 200 to the mortgage payment each month STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount OS Gh G7 150 000 00 Enter annual Interest rate 6 a 8 50 Enter Term in years 3 30 00 Find monthly P amp I Payment GD run 1 153 37 Add additional payment amount 2 0 0 8B 1 353 37 Enter as new P amp
60. ment 2 ARM 1 570 86 Find principal at start of 3rd year a Gh 173 350 16 Find current Interest rate EJ 10 25 Find remaining Term L Rel 28 00 Note You may continue pressing to find the 4th 5th year etc increasing ARM payments The display will show the payment number to the left 52 QUALIFIER P_us IIlFx ARM Payment Using Lifetime Cap Using the previous mortgage add a lifetime cap of 4 and find the adjusted payments through year six You will need to re enter the loan amount term and interest STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount OM 6 Gh eA 176 000 00 Enter Term in years 3 30 00 Enter annual Interest rate 8 2 6 8 25 Find monthly P amp l Payment 1st year cD run 1 322 23 Enter interest cap 4 6M g CAP ARM 4 00 Enter ARM parameters O80 a 1 00 1 00 Find 1st adjusted 2nd year lt ARM payment 1 ARM 1 445 79 Find 2nd adjusted 3rd year ARM payment 2 ARM 1 570 86 Find 3rd adjusted 4th year ARM payment 3 ARM 1 697 07 Find 4th adjusted 5th year ARM payment 4 ARM 1 824 09 Find 5th adjusted 6th year ARM payment 5 ARM 1 824 09 Find principal at start of 6th year CO 6 170 198 79 Find current Interest rate CG 12 25 Find remaining Term co 25 00 Reset interest cap to zero E0 CAP ARM 0 00 Note that the payment for 4th and 5th adjustments corresponding to the 5th and 6th years is the same because the lifetime cap was reached on th
61. ment with the balloon payment This calculator will not include that in the internal calculation of remaining balance it will only display the actual principal balance remaining Cont d UserR s GUIDE 35 Cont d 6 If the first payment of a loan begins in a month other than January you can use the Month Offset function The default for this setting is 1 for January To change the start month from January enter the month number e g 2 for February then the GQ and AN keys This allows you to calculate the correct number of periods in the amortization range As another example if the first payment of a loan begins in April the value stored in the month offset would be 4 press 4 GM CMN If requesting amortization values for year 1 press D QD the amortization of periods 1 9 would be displayed Year 2 press 2 G9 would display values for periods 10 21 Turning your calculator off and back on returns the Month Offset to 1 January Note If you have changed your Month Offset be sure to return it to 1 e g Em AD before proceeding to the next problem 7 A useful new feature is that your calculator will also display an estimated Mortgage Interest Tax Deduction at the end of the amortization value list after remaining balance is displayed if a tax bracket is also entered via EID Tax Brkt Note If a tax bracket percent is not entered the calculator will use the default of 28 displayed upon
62. mount DOO a 100 000 00 Enter Down Payment Gia 5 00 Enter annual Interest rate 7 00 Enter Term in years 30 a 30 00 Enter MI mortgage insurance rate 6 GH 9 0 50 Clear property tax rate 0 GD 7 0 00 Clear property insurance rate gm 0 00 Solve for monthly P amp l Payment cD run 665 30 Solve for monthly PITI Payment with MI cD 706 97 2 Enter Combo Loan Values Enter 1st TD Interest Term 8 6 0 3 7 00 30 00 Enter 2nd TD Interest Term 9 8 6 0 em 9 00 30 00 Cont d 72 QUALIFIER PLus IIIFx Cont d STEPS KEYSTROKES DISPLAY 3 Find 90 5 5 Combo Loan and Comparison Values vs Fixed Rate Loan with Mortgage Insurance Enter LTV and find ist 2nd blended interest rate V0 85 run 7 11 Find equivalent interest rate of fixed rate loan with MI run 7 61 Find total combined 1st 2nd payment 672 64 Find equivalent payment of fixed rate loan with MI 706 97 Find monthly savings over fixed rate loan with MI 34 33 Find adjusted 2nd term if savings applied to 2nd TD run 8 06 Find 1st TD loan amount 94 736 84 Find 2nd TD loan amount 5 263 16 Find 1st TD monthly payment 630 29 Find 2nd TD monthly payment 42 35 Re display LTV 90 00 5 00 Note an entered LTV is not stored in order to re calculate a Combo Loan based on a different LTV than 80 10 10 or 80 15 5 you will need to enter the LTV prior to press ing or GD GD USER S GUIDE 73 Finance Mortgage Insurance compared to a Combo Loa
63. mounts or premiums STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter property Tax rate IOIA shitt 1 50 Enter insurance rate 00 6 Eam 0 25 Enter Mortgage Insurance rate 06 em 9 0 50 Enter Price 2 6 Gh 250 000 00 Enter Down Payment 1 0 GD 10 00 Enter Term in years 3 30 00 Enter annual Interest rate 8 D 8 00 Find Loan Amount aan 225 000 00 Recall property Tax Rci 7 1 50 Calculate property Tax 3 3 750 00 Recall property insurance E 8 0 25 Calculate property insurance Co 8 625 00 Recall Mortgage Insurance ED 9 0 50 Calculate Mortgage Insurance Ga 9 1 125 00 Find monthly P amp I Payment GD run 1 650 97 Find monthly PITI Payment GD 2 109 30 Note The same procedure can be performed to find the opposite that is to find the percentage rates based on entered annual dollar amounts or insurance premi ums Simply enter the tax insurance dollar amounts and loan variables first and press and the tax insurance keys to calculate the percentage rate UserR s GUIDE 33 PITI Payment Tax and Insurance Entered as Find the monthly PITI payment on a 30 year 6 5 mortgage if the home s selling price is 325 000 and the down payment is 5 Annual property taxes are estimated at 1 3 annual property insur ance at 0 25 and annual mortgage insurance at 0 45 STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Term in years 3 0 30 00 Enter annual Interest ra
64. n Financed Mortgage Insurance loans allow for higher than 80 LTV on a straight first loan because the Mortgage Insurance added to the loan amount Another benefit to the Financed MI loan is the interest is tax deductible In many cases the Financed MI loan may be better than a combo loan We will compare a Financed Mortgage Insurance loan to a Combo Loan with a loan amount of 90 000 FIXED RATE FINANCED COMBO LOAN MI LOAN ist TD 2nd TD Loan Amount 90 000 90 000 Interest 6 6 8 Term 30 30 year 30 year MI 62 LTV 90 80 10 In order to compare a financed mortgage insurance loan to a combo loan you must first calculate the monthly MI premium and enter it as mortgage insurance as you would a standard fixed rate loan do not add the Financed MI Premium to the loan amount in this comparison STEPS KEYSTROKES DISPLAY 1 Find the Financed Mortgage Insurance premium Clear calculator 0 00 Multiply loan amount x MI MODACO AB8 558 00 2 Find Monthly MI Premium and enter it into the Mortgage Insurance key Enter financed MI into Loan Amount 558 00 Enter Term in years 30 Ga 30 00 Enter annual Interest rate 6 6 00 Calculate monthly MI premium cD run 3 35 Enter monthly MI premium into mortgage insurance OMG Em o 3 35 DO NOT CLEAR CALCULATOR 3 Enter loan values Enter Loan Amount 9 0 Gy 90 000 00 Enter Term in years 3 30 00 Enter annual Interest rate 6 6 00 Ca
65. ne of these Memory registers by storing a new value in place of the stored value FUNCTION KEYSTROKES Store single value in MO GD GD 0 Store single value in M1 GD a 1 Store single value in M2 M5 cn GE 2 3 4 or 6 Clear register e g M1 0 GD a 0 Review stored value e g M1 Rci JED Clear stored value cano Perform a GD Clear All with caution as it will clear any stored values from your calculator s registers Example Store 175 into M1 recall the value and then store a new value in place of the first stored value STEPS KEYSTROKES DISPLAY Store value in M1 OMS GM amp o M 1 175 00 Turn off and then turn on 0 00 Recall value stored in M1 GQ M 1 175 00 Replace stored value with new value OS 0 MM amp M 1 150 00 USER S GUIDE 25 Additional Memory Storage Keys M10 M19 In addition to MO M5 as described previously your calculator has ten additional independent Storage Registers M10 through M19 that can also be used to permanently store single non cumulative values To access these Storage Registers use the following key strokes AID E with being digits 0 9 These Storage Registers operate identically to MO M5 Examples Store 250 into M10 and recall the value STEPS KEYSTROKES DISPLAY Store value in M10 2 6 GD GD M 10 250 00 Turn off and then turn on 0 00 Recall value stored in M10 GQ M 10 250 00 Store 350 into M11 and reca
66. ng or stored in key IRR The rate of return at which the discounted future cash flows equal the initial cash outlay C 0 An IRR greater than the desired rate of return is financially attractive the higher the better ROD NPV Another tool to analyze cash flow scenarios A positive NPV indicates that an investment is attractive again the higher the better NPV is computed by adding the initial investment C 0 a nega tive cash outlay to the present value of the estimated future cash flows Note If there is no initial investment cash outlay enter O into the first cash flow register C 0 NPV NFV If you wish to skip the IRR calcula tion display see above press Gila GQ to calculate NPV Second press calculates NFV Clear Cash Flows Clear CF Deletes all cash flows Use this before you begin a new cash flow example User s GUIDE 17 BASIC ARITHMETIC EXAMPLES Arithmetic This calculator uses standard chaining logic which simply means that you enter your first value the operator 3 the sec ond value and then the equals sign 8 A 3 2 a 5 00 28B 1 00 8 2 B 6 00 DOS 86 1 50 Percentage Calculations The percent key can be used for finding a given percent of a number or for working add on discount or division percentage calculations A 8 0 2 5 200 00 B S60 ooa 6 275 00 C 2 8 amp 0 12 50 D DM0 S amp S amp O 40
67. nt before calculating financial values Finding Loan Amount Based on Sales Price and Down Payment Find both the Down Payment dollar amount and loan amount if the sales price is 250 000 and you re planning to put 20 down STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter sales price 2 5 Gy 250 000 00 Enter Down Payment D 20 00 Find Down Payment Dn Pmt 50 000 00 Find Loan Amount aan 200 000 00 30 QUALIFIER PLus IIlFx Taxes and Insurance This calculator has keys that store your estimated local annual Property Tax Property Insurance and Mortgage Insurance if appli cable rates or dollar figures This allows you to calculate the PITI Principal Interest Tax and Insurance payment in addition to the regular P amp l payment You may also enter monthly expenses such as home owner s association dues these are included in the cal culation of the total payment PITI plus expenses By default the Property Tax and Insurance values are cleared when the calculator is shut off while the Mortgage Insurance value clears when you press twice However you may use the Preference Settings G2 to permanently store or hold all Tax and Insurance and values when the calculator is turned off see page 22 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 Am
68. nter interest and term User s GuipE 61 Restricted Qualifying Buyers who make 68 000 annually and have 750 in long term monthly debt wish to buy a home offered at 175 000 They can only afford 5 000 for the down payment For what maximum loan amount can they qualify Use previously stored 7 5 interest 30 year term 1 5 property tax 25 property insurance and qualify ing ratios of 28 36 Re enter 0 6 mortgage insurance rate 50 association dues and 5 000 down STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Recall annual Interest rate ED 7 50 Recall Term in years Rel 30 00 Recall property tax rate G7 1 50 Recall property insurance rate ca 0 25 Re enter mortgage insurance rate 6 Gi 9 0 60 Enter monthly association dues 5 0 50 00 Enter Down Payment Gh Gi 5 000 00 Enter annual Income 6 8 GC Gy 68 000 00 Enter monthly Debt 0 Ge 750 00 Display Qualifying Ratios GZ 28 00 36 00 Find restricted Qualifying Loan Amount GD run 137 725 41 DO NOT CLEAR CALCULATOR Note If you re not continuing from the previous problem you ll need to re enter inter est term and in this case property tax insurance and mortgage insurance Cont d 62 QUALIFIER PLus IIlFx Cont d Unrestricted Qualifying The amount calculated in the previous example is the loan they may qualify for based on current income and debt and the standard 28 36 qual
69. ount can be changed and Tax and Insurance will be recalculated automatically If entered as dollar amounts however they will need to be re entered for a change in Sales Price or Loan Amount to be correct Entering values 10 or less are assumed to be annual percentage rates you do not need to use the percent key IMPORTANT NOTE Property Tax and Property Insurance rates are based on the Sales Price therefore a Down Payment or Sales Price should be entered The Mortgage Insurance rate is based on the Loan Amount If neither Sales Price nor Down Payment has been entered the Sales Price is defaulted to equal the Loan Amount basically assuming a 100 loan in which case the Tax and Insurance rates will be based on the Loan Amount value entered Note If you are underwriting a loan many lenders choose to use loan amount instead of price when figuring out Hazard Insurance In this case you will need to turn your Hazard Insurance into a dollar amount Loan Amount x Hazard Insurance Rate 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 covered for the loan amount and not the complete value of the home User s GuipE 31 Setting Tax and Insurance Percent Rates Enter an annual property tax rate of 1 5 a property insurance rate of 0 25 and a mortgage insurance rate of 0 50 STEPS KEYSTROKES DISPLAY Set property tax rate
70. our new answer without re entering all of the other data This is handy for demonstrating various what if loan problems 9 Successive presses of the QD key will calculate 1 the principal and interest P amp I payment 2 the PITI payment which includes property tax property insurance and mortgage insurance if entered 3 the total payment PITI plus any entered housing expenses and 4 the interest only payment UserR s GUIDE 27 Finding the Monthly Mortgage P amp I Payment Find the monthly P amp l principal and interest payment on a 30 year fixed rate mortgage of 265 000 at 6 75 annual interest STEPS KEYSTROKES DISPLAY Clear calculator On C 0 00 Enter Loan Amount 2 6 6 Gh GA 265 000 00 Enter Term in years 30 ea 30 00 Enter annual Interest rate 0 0 6 75 Find monthly P amp I Payment CD run 1 718 78 Note Use the Gi key to save keystrokes What is the new payment if the interest rate is lowered to 6 5 STEPS KEYSTROKES DISPLAY Enter new Interest rate 6 0 6 0 6 50 Find monthly P amp I Payment GD run 1 674 98 Finding the Loan Amount Approximately how much could you borrow if the interest rate was 7 8 on a 30 year loan and you could afford 1 500 in monthly pay ments What if the interest rate was lowered to 7 5 STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter annual Interest rate C68 D 7 80 Enter Term in years 3 0 e 30 00 Enter monthly P amp l Pay
71. qualifying ratios for what size loan and what sales price can a buyer qualify for if he or she makes 75 000 annually and has 500 in long term monthly debt The buyer plans to put 35 000 down Also what is the monthly P amp I payment Based on no Tax and Insurance STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Term in years 3 0 Gi 30 00 Enter annual Interest rate 06 0 7 50 Clear property tax rate 0 emn 7 0 00 Clear insurance rate 0 Eim 0 00 Enter annual Income 6 C B 75 000 00 Enter monthly Debt 0 0 a 500 00 Enter Down Payment 3 6 C Gi 35 000 00 Display Qualifying Ratios GZ 28 00 36 00 Find Qualifying Loan Amount GD run 250 280 85 Find Price 285 280 85 Find monthly P amp I Payment CD 1 750 00 Note Tax and Insurance will need to be cleared if you re continuing from a previous example where rates were stored DO NOT CLEAR CALCULATOR Re qualify this buyer assuming 200 per month in additional debt STEPS KEYSTROKES DISPLAY Enter new monthly Debt 0 0 Ge 700 00 Display Qualifying Ratios GZ 28 00 36 00 Find Qualifying Loan Amount GD run 221 677 32 Find Price 256 677 32 Find monthly P amp I Payment CD 1 550 00 60 QUALIFIER PLus IIlFx Qualifying Loan Amount and Sales Price Complete Example Including Down Payment Tax Insurance Monthly Association Dues The same buyers as in the previous example who make 75 000 annually and have 500 in long term monthly debt
72. rance rate to zero as they are put ting 20 down STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter annual linterest rate 6 006 6 75 Enter Term in years 3 0 30 00 Enter tax rate Oe 6 Gp 1 50 Enter insurance rate 0 2 6 em 0 25 Delete mortgage insurance rate 0 Gi 9 0 00 Enter sales price 2 6 0 Gh 250 000 00 Enter Down Payment 0 GD 20 00 Find Down Payment Dn Pt 50 000 00 Find Loan Amount aan 200 000 00 Display Qualifying Ratios GZ 28 00 36 00 Find income required Qual 1 run 71 219 12 Find maximum allowable monthly debt 474 79 Find monthly P amp I Payment QD 1 297 20 Find monthly PITI Payment GD 1 661 78 UserR s GuipE 65 Solving for Actual Qualifying Ratios A buyer who makes 120 000 annually and has 550 in long term monthly debt wants to borrow 275 000 to purchase a home He has 68 750 for the down payment and the property tax insurance rates are estimated at 1 4 and 0 2 respectively monthly homeowner s association dues are 65 Use 6 5 interest for 30 years What are his actual ratios What is the price of the home he can afford What is the monthly payment STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter annual Interest rate 6 6 50 Enter Term in years 3 0 30 00 Enter Loan Amount 2 0 6 Gi GH 275 000 00 Enter Down Payment 6 8 7 5 D 68 750 00 Enter annual Income D2 0 a 120 000 00 Enter monthly Debt 6 0 Ge 550 00
73. rchase finance a piece of property for 225 000 He d like a return of 9 and expects to sell it after five years for 275 000 He expects the annual cash flows below Find the IRR NPV and NFV and determine whether this investment is desirable Note since payments are expected to be received annually you will need to set your Payments per Year to 1 Annual Cash Flow Year 1 16 000 Year 2 16 600 Year 3 16 900 Year 4 17 200 Year 5 275 000 STEPS KEYSTROKES DISPLAY Clear cash flow register Gi 6 CF Cleared 0 00 Set payments per year to one ODS 1 00 Enter initial investment as a negative entry indicating a Cash outlay 222 D E0 C 0 225 000 00 Enter 1st Cash Flow value D 6 D EA C 1 16 000 00 Enter 2nd Cash Flow 6 0 Gs C 2 16 600 00 Enter 3rd Cash Flow D6 9 0 Gs C 3 16 900 00 Enter 4th Cash Flow O20 0 C 4 17 200 00 Enter 5th final Cash Flow 2 7 0N CA C 5 275 000 00 Find the IRR Gq run 9 83 Enter the desired rate of return and calculate NPV 9 Eem run 7 616 73 Find the NFV ca 11 719 29 Re display the desired rate of return LIRR 9 00 Clear registers Shift Ex All Cleared 0 00 This will clear Cash Flows and reset payments per year to 12 e g monthly for per forming the other examples in this guide Analysis This investment would provide an internal rate of return greater than the desired rate of return making this a positive investmen
74. river and unscrew the two 2 screws on the base of the unit Carefully remove the lower back housing Remove the battery from the clip and replace it with a new battery with the positive side up Then replace the backplate and reattach the screws X 82 QUALIFIER PLus IIlFx Repair and Return Warranty Repair and Return Information Return Guidelines 1 Please read the Warranty in this User s Guide to determine if your Calculated Industries product remains under warranty before calling or returning any device for evaluation or repairs 2 If your product won t turn on check the batteries as outlined in the User s Guide 3 If you need more assistance please go to the website listed below 4 If you believe you need to return your product please call a Calculated Industries representative between the hours of 8 00a m to 4 00p m Pacific Time for additional information and a Return Merchandise Authorization RMA Call Toll Free 1 800 854 8075 Outside USA 1 775 885 4900 www calculated com warranty Warranty Warranty Repair Service U S A Calculated Industries Cl warrants this product against defects in materi als and workmanship for a period of one 1 year from the date of original consumer purchase in the U S If a defect exists during the warranty peri od Cl at its option will either repair using new or remanufactured parts or replace with a new or remanufactured calculator the product
75. rm in years 3 30 00 Find monthly P amp I Payment CD run 751 27 Find days between escrow closing date and date of 1st payment B L B CORE 11 00 a o 20e Find the prepaid interest due at closing 8 252 08 Note This is based on a 360 day year as most banks use this method for comput ing prepaid interest DO NOT CLEAR CALCULATOR Now without clearing the calculator add the prepaid interest to the loan s points and fees if they are equal to 1 5 and 500 respec tively Then find the Annual Percentage Rate APR based on these closing costs STEPS KEYSTROKES DISPLAY Store the prepaid interest in memory 252 08 Find Loan Costs Recall Loan Amount a 100 000 00 Find point cost DIOLOG 1 500 00 Add fees and find total Hoos 2 000 00 Add prepaid interest stored in memory Rel 2 252 08 Find APR for this loan cn ao run 8 50 Clear All Gil 3 All Cleared 0 00 50 QUALIFIER PLus IIlFx Adjustable Rate Mortgages Using the key you can quickly find the adjusted increasing or decreasing payments for future years on fully and partially amor tized Adjustable Rate Mortgages Here are some notes on Solving ARM loans using this calculator 1 You solve the initial ARM payment just as you would for any standard fixed rate loan the ARM function is only used for adjusted periods The split Interest Term Adjustment entry for ARMs should be entered on an
76. rrrrerrrinnerttrnnenennnnanennnnneennan 31 Setting Tax and Insurance Percent Rates cc cccccesseeeeeeee 32 Recalling Tax and Insurance Percent Rates 32 Setting Tax and Insurance Dollars ccccceceeeeeeeeeeeeeeeeeeneeees 32 Calculating Tax and Insurance Percent or Dollars 00 33 PITI Payment Tax and Insurance Entered as Percent 34 2 QUALIFIER PLus IIIFx Total Payment Including Expenses and Interest Only PAYMONTES aieiai E See etd eye daath ETE EEANN 34 Amortization and Remaining Balance 35 Notes On AMOrtization cecccceeeeseeeeeeeeeneeeeeeeenaeeeeeeetaeeeeeeeaas 35 Total Principal and Interest for a 30 Year Loan 0ccee 37 Balloon Payment Remaining Balance Needed to Pay Off LOAM AEE E AEE A E E A A E T E 37 Amortization List for Individual Year s Using Next Feature essssessresenrrsssirireesirerserernneerenenaerenens 38 Amortization List for Individual Year s Using Month OffSet seeseeseeeseesesseseerresrsesererrerrrsrrnsennens 39 Amortization List for Individual Payment S sececeeeeeeees 40 Amortization List for a Range of Payments ecseeeeees 41 Amortization List for a Range of Years ee eeeeeeeeeneeeeeeeneees 41 Bi Weekly Loans s acire air reiii E Ea 42 Bi Weekly Term Reduction and Payment c ceeeeeeeeeeeteeee 42 Future Valu osaisi ae in arii ninth Ea aKa EErEE AEEA RAA 43 AAPPIOCl
77. rs 360 periods or months Payments per Year Pmt Yr Used to set the number of payment periods per year Default value is 12 for monthly Note You can store the number of payments year permanently or semi permanently See Preference Settings on page 22 USER S GUIDE 7 cn am cn an Amortization Amort Finds total interest princi pal remaining balance remaining term and estimat ed mortgage interest tax deduction The output of this key is as follows Press Display or Calculation Displays range of periods Calculates total interest for period range Displays total principal for range Calculates total principal and interest Calculates remaining balance Calculates remaining term Calculates estimated mortgage interest tax deduction for the specified period based on the default tax bracket of 28 You may enter any tax bracket e g 30 press 3 0 GD and recalculate amortization values NOoORONDM Note This is only for estimating a mortgage interest tax deduc tion it does not include property tax See Tax Savings Keys for income tax savings including property tax and mortgage interest on page 11 Remaining Balance Bal Displays the remain ing balance when preceded by a single year or range of years or individual payment or range of payments by using the ED Ed keys Note that you can also view the remaining balance by continu ously pressing the key Colon Separator Dat
78. se plus monthly debt should be 36 or less of income INCOME RATIO TOTAL HOUSING EXPENSE GROSS MONTHLY INCOME Cont d 12 QUALIFIER PLus IIlFx Cont d DEBT RATIO TOTAL HOUSING EXPENSE MO DEBT GROSS MONTHLY INCOME Note Typically when figuring government loans FHA VA these formulas also include estimated expenses for maintenance and utilities added to the Total Housing Expense for both ratios Also real estate financing and qualifying varies per region and by lender who of course take other factors into consideration such as a buyer s credit and employment history 2 Calculates the maximum loan amount for which a buyer may qualify based on the stored income and debt qualifying ratios and the entered term interest annual income monthly debt and optional e annual property tax and insurance e annual mortgage insurance Mortgage Insurance or Ml e other monthly housing expenses e g home owner s association dues The output of this key is as follows Press Display or Calculation 1 Displays stored Qualifying Ratios e g 28 36 2 Restricted Maximum Qualifying Loan Amount 3 Buyer s Actual Ratios Income Debt 4 Unrestricted Qualifying Loan Amount 5 Maximum Allowable Debt Cont d UserR s GUIDE 13 Cont d Inc Note The Maximum Qualifying Loan Amount is the restricted loan amount the buyer may qualify for This loan amount
79. shows the total interest savings third press displays the total interest paid fourth press displays the total principal and fifth press displays the total principal and inter est paid Pressing GQ will calculate the Bi Weekly payment Pressing Gi again will return and re calculate to the original term or pressing twice will exit Bi Weekly Mode Tax Bracket Tax Brkt Enters a buyer s tax bracket for figuring Rent vs Buy calculations for calculating Tax Savings or for calculating an esti mated mortgage interest tax deduction in the Amortization calculation Press to display stored percentage Default 28 USER S GUIDE 9 Tax Insurance and Expense Keys In addition to Qualifying the following keys are also involved in PITI or total payment calculations e g they are added to the monthly payment Shift Ep 8 GD o Property Tax Tax Used for calculating PITI and Total payment and Qualifying Stores estimated annual property tax in either percent or dollar amount If entered as an annual dollar amount pressing ED 7 converts to the monthly tax amount and pressing EJ 7 again converts to the annual percentage rate If entered as a percentage press ing GD 7 converts to the annual dollar amount and pressing EJ 7 once more shows the monthly tax Note Entering a number equal to or less than 10 is assumed to be an annual percentage Property tax is calculated from the sales price therefore
80. t 78 QUALIFIER PLus IIIFx Calculating IRR NPV and NFV for Monthly Cash Flows A real estate investor wishes to purchase finance a piece of property for 225 000 She d like a return of 10 and expects to sell it after five years for 275 000 She expects the monthly cash flows below Find the IRR NPV and NFV and determine whether this investment is desirable Note since payments are expected to be received monthly you will need to set your Payments per Year to 12 Monthly Cash Flows Year 1 1 000 Year 2 1 100 Year 3 1 200 Year 4 1 200 Year 5 275 000 STEPS KEYSTROKES DISPLAY Clear cash flow register im 6 CF Cleared 0 00 Enter payments per year M ED S 12 00 Enter initial investment as a negative entry indicating a cash outlay 2 2 D ED C 0 225 000 00 Enter 1st Cash Flow value O Gi C 1 1 000 00 Enter 1st Cash Flow frequency 0 2 Gi F 1 12 00 Enter 2nd Cash Flow value 1 0 0 GA C 2 1 100 00 Enter 2nd Cash Flow frequency 0 o GM ca F 2 12 00 Enter 3rd Cash Flow value 2 C 3 1 200 00 Enter 3rd Cash Flow frequency 2 4 ED Ga F 3 24 00 Enter final 4th Cash Flow 2 7 0N Ga C 4 275 000 00 Find the IRR IRR 10 26 Enter the desired rate of return and calculate NPV M 0 eim run 2 127 07 Find the NFV 3 194 37 Re display the desired rate of return 10 00 Because the amount of monthly rent for Years 3 and 4 remains the same this Cash
81. te 6 6 50 Enter sales Price 3 2 6 Gy 325 000 00 Enter Down Payment 5 GD 5 00 Enter Tax rate 0 o O GD 7 1 30 Enter property Insurance rate 00 6 em 0 25 Enter Mortgage Ins rate 0 E0 0 45 Find Loan Amount 308 750 00 Find monthly P amp I Payment GD run 1 951 51 Find monthly PITI Payment GD 2 487 08 Total Payment Including Expenses and Interest Only Payment Find the total monthly payment including principal interest tax insurance and monthly expenses and the interest only payment on a 30 year 6 loan if the home s selling price is 330 000 and the down payment is 15 Local annual property taxes are estimated at 5 900 property insurance at 500 mortgage insurance at 1 200 and monthly expenses e g homeowners association dues plus utilities at 150 STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Term in years 0 30 00 Enter annual Interest rate 6 6 00 Enter sales Price 33 0 Gy 330 000 00 Enter Down Payment 1 GD 15 00 Find Down Payment Dn Prt 49 500 00 Enter property Tax 9 0 0 Gh 5 900 00 Enter property Insurance 0 0 GM 500 00 Enter Mortgage Insurance 1 2 0 0 GD 9 1 200 00 Enter monthly Expenses 1 0 GY 150 00 Find Loan Amount 280 500 00 Find monthly P amp I Payment CD run 1 681 74 Find monthly PITI Payment CGD 2 315 07 Find monthly total Payment PITI plus monthly expenses cD 2 465 07 Find interest only Payment GD 1 402 50
82. terms 60 months remaining in the term a face amount when due of 7 500 10 interest only payments of 62 50 incoming He says he will sell this note to you for 6 500 if you buy today If you buy it what will be the yield on your investment STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter future value of note when due S00 GM 7 500 00 Enter purchase price 6 6 Gea 6 500 00 Enter remaining Term mths 6 0 ED aZ 60 00 Enter Payment amount 6 2 6 0 Ga 62 50 Find your yield run 13 70 Note Pressing GD identifies your entry as a periodic value For desktop model press to perform this function DO NOT CLEAR CALCULATOR What should you pay for this trust deed if you want an 18 yield on your investment STEPS KEYSTROKES DISPLAY Enter your desired yield M 18 00 Find purchase price run 5 530 99 USER S GUIDE 47 Finding the Value and Discount of a Trust Deed Determine the value and discount required for a 75 000 mortgage payable at 937 50 per month bearing interest at 11 per year due in seven years STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Store Loan Amount in Memory 5 Gh GA M 75 000 00 Enter monthly Payment VWIMNOS GD 937 50 Enter Term in years 7 00 Enter annual Interest rate 11 00 Calculate remaining balance an ca 43 576 27 DO NOT CLEAR CALCULATOR What should you pay for this trust deed if you want a 17 yield on your investm
83. tios you desire in the GED or GED keys Income Enters the buyer s annual income for loan qualifying Enters a monthly income when pre ceded by the Gif key e g S 0 0 0 E0 0 Enters buyer s long term monthly debt e g car payments credit cards with large balances long term monthly payments 14 QUALIFIER PLus IIlFx ist amp 2nd Trust Deeds Combo Loan Keys The Combo Loan keys show the savings of obtaining a 1st and 2nd trust deed TD loan over a single fixed rate loan where mortgage insurance or private mortgage insurance MI is required This routine requires a fixed rate loan to be entered using the stan dard Ga Ga and or keys so that a loan comparison can be made cn am Loan to Value Combo Loan for 80 10 10 This key provides a loan comparison see key outputs below of an 80 10 10 combo fixed rate loan versus a single fixed rate loan requiring mortgage insur ance The stored values are a percentage of the sales price e g 80 10 identifies that 80 of the price is covered by the 1st TD 10 of the price is covered by the 2nd TD and the remaining 10 is covered by the down payment Loan to Value Combo Loan for 80 15 5 The second function of this key provides a loan compari son see below of an 80 15 5 combo fixed rate loan versus a single fixed rate loan requiring mort gage insurance The stored values are a percentage of the sales price e g 80 15 identifies that
84. until changed or reset ON oO 2nd TD Interest Term Stores the annual interest and term for the 2nd fixed rate TD Entry is made using the key Interest Term Both interest and term values are required for a valid entry Values will be retained until changed or reset Cash Flow Keys The following keys provide quick and easy analysis of cash flow investment scenarios without all the confusing keys or keystrokes of typical financial calculators This key allows the entry of up to 20 cash flows either positive or negative use the Ei amp keys to label a cash flow as a negative value or cash outlay 16 QUALIFIER PLus IIIFx aa can ea cn ca Shift 6 Frequency Freq The second function of this key labels a cash flow that is repeated consecutively or grouped e g if a cash flow is repeated three times in a row first enter the cash flow value into the key then enter the frequency or number of occur rences 3 Gili Gz Note to use the Frequency function a cash flow must repeat itself consecutively If it occurs more than once out of order or is not consecutive you must enter it separately just like other cash flows do not use the Frequency function Internal Rate of Return This multi function key calculates upon consecutive presses Press Display or Calculation IRR Net Present Value NPV Net Future Value NFV Desired Interest Rate entered prior to cal culati
85. vidual Year s Using Next Feature How much total interest and principal will you pay on a 30 year 90 000 loan at 8 interest during the first year The second year Third year etc First find the monthly P amp l payment to set up this loan The calculator will automatically advance to the next year upon subsequent presses of MI Note The mortgage interest tax deduction is based on the default tax bracket of 28 unless you have changed it via i STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Enter Loan Amount 9 0 Gh GA 90 000 00 Enter annual Interest rate 8 00 Enter Term in years 3 0 30 00 Find monthly P amp I Payment GD run 660 39 Enter Year 1 o Gia run 1 12 Find total interest in Year 1 7 172 83 Find total principal in Year 1 751 83 Find P amp I in Year 1 7 924 66 Find remaining balance at the end of Year 1 89 248 17 Find remaining term 29 00 Find mortgage interest tax deduction in Year 1 2 008 39 Display next year Year 2 run 13 24 Find total interest in Year 2 7 110 43 Find total principal in Year 2 GZ 814 23 Find P amp I in Year 2 7 924 66 Find remaining balance at the end of Year 2 88 433 94 Find remaining term 28 00 Find mortgage interest tax deduction in Year 2 1 990 92 Display next year Year 3 run 25 36 etc sequence repeats for each year 38 QUALIFIER PLus IIlFx Amortization List for Individual Year s Using Month Offset The
86. y savings of 1st and 2nd TD over fixed rate loan w mortgage insurance Adjusted term if savings applied to 2nd TD and 1st and 2nd TD loan amounts and payments See the following examples Note the first examples are for 80 10 10 and 80 15 5 loans and the last example demonstrates how to enter any LTV UserR s GUIDE 67 Combo Loan 80 10 10 vs Fixed Rate Loan with Mortgage Insurance You d like to show your client the savings of a fixed rate Combo Loan 80 10 10 over that of a standard fixed rate loan with mort gage insurance You have the following parameters FIXED RATE FIXED RATE COMBO LOAN LOAN w MI ist TD 2nd TD Loan Amount 100 000 Interest 7 9 Term 30 year 30 year MI LTV 80 10 STEPS KEYSTROKES DISPLAY 1 Enter Fixed Rate Loan Values and Find Total Payment Clear calculator 0 00 Enter Loan Amount DOO a 100 000 00 Enter Down Payment o Gi 10 00 Enter annual Interest rate Int 7 00 Enter Term in years 3 30 00 Enter MI mortgage insurance rate 6 shit 0 50 Clear property tax rate 0 EB 0 00 Clear property insurance rate Shift 0 00 Solve for monthly P amp l Payment run 665 30 Solve for monthly PIT Payment with MI cD 706 97 2 Enter Combo Loan Values Enter 1st TD Interest Term 8 6 0 Ea 7 00 30 00 Enter 2nd TD Interest Term 9 8 6 0 em 9 00 30 00 Cont d 68 QUALIFIER PLus IIlFx Cont d STEPS KEYSTROKES DISPLAY 3 Find 80 10 10 Combo Loan and
87. years STEPS KEYSTROKES DISPLAY Clear calculator 0 00 Recall payments year Rci I 12 00 Enter deposit into Loan Amt present value 0 Gh G7 50 000 00 Enter Interest rate 8 00 Enter Term in years 2 5 25 00 Find future value Gin a run 367 008 80 Enter new Term in years _ 3 0 30 00 Find new future value cm run 546 786 48 Calculator must be set to default of 12 periods per year for compounding monthly If it isn t enter 2 W f you need to set the calculator to compounded interest other than monthly enter the number of periods then Gi e g for interest com pounded quarterly enter 4 ED Retirement Savings Future Value of Monthly Investment Using Beginning Mode If you invest 500 per month at the beginning of each month in a retirement plan that earns annual interest of 7 compounded monthly what is the future value in 20 years 30 years Note the calculator defaults to End of the Month Mode so you must change it to Beginning Mode STEPS KEYSTROKES DISPLAY Access End Mode via Preference Settings Em ress B seven times TYP END Set to Beginning Mode TYP BEG Clear calculator BEG 0 00 Recall payments year Rc I 12 00 Enter monthly deposit 0 gD 500 00 Enter annual Interest rate 7 00 Enter Term in years 2 0 20 00 Find value in 20 years Gin a 261 982 70 Cont d 44 QUALIFIER PLus IllFx Cont d Find future value in 30 years STEPS KEYSTRO

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