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Summary of Contents for Calculated Industries 3416
- Page 1 ORTGAGE UALIFIER ® Residential Mortgage Finance Calculator Model 3416 Pocket Reference Guide...
- Page 2 ORTGAGE The M ORTGAGE pre-qualify clients and calculate financial problems with ease! Quickly Solve: • Time-Value-of-Money (TVM) Problems: Find Loan Amount, Term, Interest, Payment, Future Value • Restricted/Unrestricted Qualifying • Required Income/Debt • Property Tax and Insurance, Mortgage Insurance • P&I and PITI payment •...
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Page 3: Table Of Contents
TABLE OF CONTENTS KEY DEFINITIONS ...1 EXAMPLES...6 Monthly Mortgage (P&I) Payment ...6 Interest-Only Payment (Calculation) ...6 Interest-Only Payment (Entry)...7 Term of a Loan ...7 Interest Rate...8 Loan Amount ...8 Loan Amount Based on Sales Price and Down Payment...9 Date Example...9 Setting Tax and Insurance...10 PITI Payment, Total Payment and Interest-Only Payment ...10... - Page 4 Qualifying Loan Amount (Interest-Only Loan) ...26 Income Required and Allowable Monthly Debt ...27 80:10:10 Combo Loan vs. Fixed-Rate Loan with Mortgage Insurance...28 80:20 Interest-Only Combo Loan ...32 APPENDIX ...34 Default Settings ...34 Decimal Place Setting ...35 Preference Settings...35 Batteries ...36 Reset ...36...
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Page 5: Key Definitions
KEY DEFINITIONS Note: This is a short “reference” guide. Please see your large User’s Guide for detailed defini- tions and examples. ® μ OCKET Colon separator (used for date, ARM adjustment, qualifying ratios and combo loans) Backspace key; for back- ing up/deleting wrong entry Recalls or re-displays a value when followed by a... - Page 6 s – s ÷ OCKET Sets number of displayed decimal places and acti- vates 2nd functions Change sign Clear All (Note: perform with caution as it will clear/reset stored values) Preference mode (see Large User’s Guide for details) Payments per year (Default 12, for monthly) Periodic (identifies entry as periodic rather than yearly)
- Page 7 ˆ s ˆ OCKET Number of years Annual interest rate Future value APR (annual percentage rate) , including mortgage insurance, if entered Home’s sales price Down payment Bi-Weekly loan Amortization function Remaining balance Adjustable-rate mortgage ARM decreasing interest % adjustment ARM lifetime interest cap% Qualify based on 28%-36%...
- Page 8 OCKET Property Tax (enter as per- cent or dollar amount) Estimated Tax savings/after tax payment Property/homeowner’s Insurance (enter as per- cent or dollar amount) Mortgage Insurance (enter as percent or dollar amount) Monthly Expenses (such as homeowner’s associa- tion dues) For entering (or finding) Loan-to-Value ratio and computing respective...
- Page 9 OCKET Combo loan function for an 80:10:10 LTV loan*; calcu- lates 1st/2nd TD values and compares them to entered fixed-rate loan w/mortgage insurance *You may enter any LTV prior to pressing this key (e.g., LTV of 90:5, enter 9 0 : 5 * ) Interest-only 2nd TD combo loan;...
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Page 10: Examples
EXAMPLES Monthly Mortgage (P&I) Payment Find the monthly (P&I) payment on a 30- year, fixed-rate loan of $265,000 at 6.75% annual interest: STEPS Clear Enter loan Enter term Enter interest 6 • 7 5 ˆ Find payment p Interest – Only Payment (Calculation) Find the interest-only payment on a loan of $15,000 at 9% interest. -
Page 11: Interest-Only Payment (Entry)
Interest – Only Payment (Entry) How much can you borrow if the interest rate is 7% on a 30-year interest–only mortgage and you can afford to pay $1,000 each month? STEPS Clear Enter Interest 7 ˆ Enter Payment 1 ) s p 1000.00 Find Loan Term of a Loan How long does it take to pay off a loan of... -
Page 12: Interest Rate
Interest Rate Find the interest rate on a mortgage if the loan amount is $98,500, term is 30 years and payment is $1,150 a month: STEPS Clear Enter loan Enter term Enter payment 1 1 5 0 p Find annual interest Find periodic interest... -
Page 13: Loan Amount Based On Sales Price And Down Payment
Enter new interest rate Find new loan amount Loan Amount Based on Sales Price and Down Payment Find both $ down payment and loan amount if the sales price is $375,500 and you're planning to put 20% down: STEPS Clear Enter price Enter down% 2 0 d* Find down$... -
Page 14: Setting Tax And Insurance
Setting Tax and Insurance Enter an annual property tax rate of 1.5%, a property/homeowner’s insurance rate of 0.25% and a mortgage insurance rate of 0.50%: STEPS Set tax%* Set insurance% Set mortgage insurance% • 5 0 s I *Note: Do not label as a percent, or use the % key;... - Page 15 Set MI% Find loan Find P&I payment Find PITI payment — DO NOT CLEAR CALCULATOR — Find the total payment, if you estimate homeowner’s association fees at $80/mo. Also find the interest-only payment: STEPS Enter expenses 8 0 e Find total pmt. p p p...
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Page 16: Quarterly Payment
Quarterly Payment Find the quarterly payment on a 10-year loan of $15,000 with an annual interest rate of 12%: STEPS Clear Set to 4 payments per year Enter loan Enter term Enter interest 1 2 ˆ Find quarterly payment Return to 12 payments per year OCKET KEYSTROKES... -
Page 17: Estimated Tax Savings
Estimated Tax Savings • Loan: $150,000 • Buyer’s tax bracket: 28% • Term: 30 years • Interest: 8% • Property taxes: $1,500 • Property insurance: $250 Note: This is an estimate only. What is this buyer’s estimated income tax savings and “after tax” payment? STEPS Clear Enter term... -
Page 18: Rent Vs. Buy
Rent vs. Buy • Term: 30 years • Interest: 7.5% • Down: 10% If your client is currently renting a home for $1,250/month, find the comparable home sales price and loan amount that he or she could afford: STEPS Clear Enter term Enter interest Enter down... -
Page 19: Arm Payment - Lifetime Cap
Clear All ARM Payment — Lifetime Cap • Loan: $230,000 • Term: 30 years • Interest: 7.25% • Lifetime cap: 4% • ARM Interest Adjustment: 1% per year Find the adjusted ARM payments through year six: STEPS Clear Enter loan Enter term Enter interest 7 •... - Page 20 (Cont’d) STEPS Find 3rd “adjusted” payment Find 4th “adjusted” payment Find 5th “adjusted” payment Find principal at start of year Recall current interest rate Recall remaining term Clear Cap *Note that the payment for 4th and 5th adjust- ments (corresponding to the 5th and 6th years) is the same because the lifetime cap was reached on the 4th adjustment.
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Page 21: Amortization
Amortization • Loan: $300,000 • Term: 30 years • Interest: 7.5% Find total interest and principal for the life of the loan: STEPS Clear Enter loan Enter interest 7 • 5 ˆ Enter term Find P&I pmt p Find # pmts Find total int. -
Page 22: Apr And Total Finance Charges, Including Mortgage Insurance
APR and Total Finance Charges, Including Mortgage Insurance • Loan: $250,000 • Term: 30 years • Interest: 7% • Cost: 1.5 points + $550 • Mortgage insurance/MI: $1,200/year STEPS Clear Enter loan Enter term Enter interest 7 ˆ Find P&I pmt p Enter MI Find Loan Costs: Recall loan... -
Page 23: Appreciation
Appreciation What will a $350,000 home’s value be in 3 years, figuring an inflation or appreciation rate of 6%? STEPS Clear Set to 1 payment per year Enter PV* Enter term Enter appreciation rate Find FV** Return to 12 payments per year * PV (Present Value) = original purchase price;... -
Page 24: Bi-Weekly Loans
Bi-Weekly Loans • Loan: $212,500 • Term: 30 years • Interest: 7.85% Find the Bi-Weekly term, savings, interest savings, total cost, and Bi-Weekly payment: STEPS Clear Enter loan Enter term Enter interest 7 • 8 5 ˆ Find P&I payment Find Bi-Weekly term Find total interest... -
Page 25: Setting Qualifying Ratios
Setting Qualifying Ratios Enter new qualifying ratios of 30% for Income and 38% for Debt in q : STEPS Clear Set qualifying ratios Return ratios to 28:36 OCKET KEYSTROKES 3 0 : 3 8 q 2 8 : 3 6 q EFERENCE DISPLAY 30.00-38.00... -
Page 26: Qualifying Loan Amount
Qualifying Loan Amount • Buyer’s income: $75,000 • Monthly debt: $500 • Down$: $5,000 • Property taxes: 1.5% • Property insurance: 0.25% • Mortgage insurance: 0.6% • Monthly association dues: $50 • Term: 30 years • Interest: 7.5% • Qualifying ratios: 28%: 36% Find the Qualifying Loan Amount, Price and Total Payment: STEPS... - Page 27 Find qualifying loan amount Find price — DO NOT CLEAR CALCULATOR — Find the monthly P&I payment and total payment: STEPS P&I payment p PITI payment p Total payment p OCKET KEYSTROKES EFERENCE 189,119.31 194,119.31 DISPLAY 1,322.35 1,700.00 1,750.00 — 23...
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Page 28: Restricted" Vs. "Unrestricted" Qualifying
“Restricted” vs. “Unrestricted” Qualifying • Buyer’s income: $68,000 • Monthly debt: $750 • Down$: $5,000 • Property taxes: 1.5% • Property insurance: 0.25% • Mortgage insurance: 0.6% • Monthly association dues: $50 • Term: 30 years • Interest: 7.5% • Qualifying ratios: 28%: 36% Find the “restricted”... - Page 29 Enter down Income Monthly debt 7 5 0 D Display qualifying ratios Find “restricted” qualifying loan amount — DO NOT CLEAR CALCULATOR — STEPS Find actual ratios Find “unrestricted” loan amount Find maximum allowable debt *Note: The “INC” tells you this unrestricted Qualifying Loan Amount is based on the buyer’s...
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Page 30: Qualifying Loan Amount (Interest-Only Loan)
Enter interest 6 • 7 5 ˆ Enter term Display ratios s q Find qualifying loan amount Find price — DO NOT CLEAR CALCULATOR — Find the monthly P&I pmt, PITI pmt, total pmt, and I/O pmt: STEPS P&I payment p PITI payment p... -
Page 31: Income Required And Allowable Monthly Debt
Income Required (Stated Income) and Allowable Monthly Debt • Sales price: $300,000 • Down%: 20% • Property taxes: 1.5% • Property insurance: 0.25% • Mortgage insurance: 0% • Term: 30 years • Interest: 5.88% Find the income required to finance a $300,000 home and the maximum allow- able debt. -
Page 32: 80:10:10 Combo Loan Vs. Fixed-Rate Loan With Mortgage Insurance
(Cont’d) STEPS Display qualifying ratios Find income required Find maximum allowable monthly debt Find P&I payment Find PITI payment 80:10:10 Combo Loan vs. Fixed-Rate Loan with Mortgage Insurance Compare an 80:10:10 Combo Loan vs. a Fixed-Rate loan w/mortgage insurance. The loan parameters are: Loan Interest Term... - Page 33 STEPS 1. Enter Fixed-Rate Loan Values and Find Total Payment: Clear Enter loan Enter down payment Find price Enter interest 6 • 5 ˆ Enter term Enter MI% Clear Tax Clear Insurance 0 I Solve for P&I payment Solve for PITI (including PMI) 2.
- Page 34 (Cont’d) STEPS 3. Find Combo Loan Values: Find blended interest rate for 1st/2nd TD ** Find equivalent interest rate for fixed-rate loan with mortgage insurance Find 1st/2nd TD combined monthly payment Find equivalent payment for fixed-rate loan with mortgage insurance Display monthly savings over fixed-rate loan with mortgage insurance...
- Page 35 *To enter a different LTV without changing the stored LTV, you can enter it prior to pressing the * key. For example, enter 8 0 : 2 0 , then press the * key, as above, for the new calculations. To return to the existing problem, press o once and press * .
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Page 36: 80:20 Interest-Only Combo Loan
80:20 Interest-Only 2nd Combo Loan Find the monthly payments with an 80:20 Interest-Only 2nd Combo Loan: COMBO (1st/2nd) Loan Interest Term STEPS 1. Enter the Total of the Combined Loans: Clear All Enter combined Loan total 2. Enter Combo Loan Values: Enter 1st TD Interest and Term Enter 2nd TD Interest... - Page 37 Find 1st/2nd TD combined monthly payment Find 1st TD loan amount Find 2nd TD loan amount Find 1st TD payment Find 2nd TD payment Display entered *To enter a different LTV without changing the stored LTV, you can enter it prior to pressing the * key.
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Page 38: Appendix
APPENDIX Default Settings Performing a Reset will return your calcu- lator to the default settings below: • 12 Periods per Year • Property Tax/Insurance = % Rates Not Permanently Stored/Clears Upon O • Mortgage Insurance = % Rates Not Permanently Stored/Clears upon •... -
Page 39: Decimal Place Setting
Decimal Place Setting To set the number of decimal places dis- played: s • Preference Settings To access the Preference Mode, press s, then =, then keep pressing = to toggle through the preference settings list- ed. Press the + key to advance through the sub-settings. -
Page 40: Batteries
You may at times want to reset your cal- culator to its factory settings (i.e., reset all registers and Preference Settings to their original default values). To do this, turn off the calculator, hold down the x key, and then turn it back on. — 36 OCKET... - Page 41 Software copyrighted and licensed to Calculated Industries, by Real Estate Master Technologies, LLC, 2006. Pocket Reference Guide copyrighted by Calculated Industries, 2006. Qualifier Plus ® and Calculated Industries ® are registered trademarks of Calculated Industries, Inc. ALL RIGHTS RESERVED CALCULATED INDUSTRIES ®...