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Summary of Contents for Calculated Industries 3420
- Page 1 ANADIAN UALIFIER ® PROFESSIONAL RESIDENTIAL REAL ESTATE FINANCE CALCULATOR with BUILT-IN CANADIAN INTEREST MODE Model 3420 Pocket Reference Guide...
- Page 2 ANADIAN The C ANADIAN tor lets you perform mortgage qualifying and financial problems with ease! Quickly Solve: • Time-Value-of-Money (TVM) Problems: Find Mortgage Amount, Term, Interest, Payment, Future Value • P&I payment, PITH/total payment, and interest-only payment • Sales Price and Down Payment •...
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Page 3: Table Of Contents
TABLE OF CONTENTS KEY DEFINITIONS ...4 Canadian/U.S. Interest Modes...8 Preference Mode...8 EXAMPLES...9 Basic Math ...9 Percentage Calculations ...9 Memory Functions...10 Setting Decimal Places ...11 Date Function...12 Mortgages and Real Estate Mortgages ...13 EXAMPLES — CANADIAN MODE ...14 Monthly Mortgage Payment ...14 Term of a Mortgage...15 Mortgage Amount...15 Interest Rate...16... - Page 4 Amortization (Total Principal/Total Interest, Remaining Balance)...22 Bi-Weekly Mortgages ...23 Setting Qualifying Ratios...24 Qualifying Mortgage Amount...24 “Restricted” vs. “Unrestricted” Qualifying ...26 Qualifying Comparison (Two Ratios at Once) ...28 Finding Income Required and Allowable Monthly Debt ...30 EXAMPLES — U.S. MODE ...31 Monthly Loan Payment ...31 Setting Tax and Insurance ...32 PITI Payment and Interest-Only...
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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 details. µ ® OCKET Colon separator (for date, Amortization ranges, ARM adjustment and qualifying ratios) Backspace Triple-zero entry key Memory Function: - µ Adds value on dis- play to Memory - s µ... - Page 6 s ÷ s – ˆ OCKET Sets number of displayed decimal places and acti- vates 2nd functions Clear All Note: perform with caution as it will clear/reset stored values. Payments per year (Default 12, for monthly) Change sign + or – Preference mode (see large User’s Guide) Month offset...
- Page 7 π OCKET Future value Period (identifies entry as periodic rather than yearly) Sales Price of home Down Payment (entered in % or $) Loan-to-Value (LTV) Amortization function Remaining balance Qualify based on 32%-40% (Canada) Qualify based on 35%-42% (Canada) Annual Income Long-term, monthly Debt Estimated annual property Tax (enter as percent or...
- Page 8 U.S. ONLY KEYS: s ˆ Â OCKET Adjustable Rate Mortgage ARM decreasing Interest % adjustment ARM lifetime Interest Cap (Cap%) APR (Annual Percentage Rate) , including mortgage insurance, if entered Estimated tax savings/after-tax payment Rent vs. Buy Tax bracket % Estimated annual proper- ty/homeowner’s insurance (enter as percent or dollar...
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Page 9: Canadian/U.s. Interest Modes
= key. Toggle within each category by pressing the + key. To set the preference and exit, press the o key. To reset the calculator back to its default settings, turn off the calculator, hold down x and turn back on (“All Reset”... -
Page 10: Examples
EXAMPLES Basic Math This calculator uses standard chaining logic. This means the first value is entered, then an operator, then the sec- ond value, then the Equals = key to get your answer. A. 2 1 6 + 8 4 = 300.00 B. -
Page 11: Memory Functions
Memory Functions Pressing the µ key adds the displayed value to cumulative Memory. s µ subtracts the displayed value from cumu- lative Memory. ® µ recalls and dis- plays the total value in Memory. ® ® displays and clears the Memory. KEYSTROKES 1. -
Page 12: Setting Decimal Places
Setting Decimal Places You can use the s key to select the number of decimal places displayed. (Values are rounded using 5/4 rounding.) You may do this before or after finding an answer. Press s followed by the num- ber of decimal places you wish to display: s •... -
Page 13: Date Function
Date Function 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 Numerical Year. -
Page 14: Mortgages And Real Estate Mortgages
Mortgages and Real Estate Mortgages • The financial functions — l, p, T and ˆ — work just like you would say them. For example, to find the payment on a $100,000 mortgage for 25 years at 10% interest, enter the three known variables and press the key for the unknown fourth variable: p. -
Page 15: Examples - Canadian Mode
Enter Interest 7 • 7 5 ˆ Find Payment p *Note: When entering or calculating interest in Canadian Mode, the letters “CDN” will appear in the upper left side of the calculator display. OCKET KEYSTROKES 1 6 5 ) l... -
Page 16: Term Of A Mortgage
Term of a Mortgage How long does it take to pay off a mort- gage of $15,000 at 10% interest if you make payments of $200 each month? STEPS Clear Enter Mtg. Enter Interest 1 0 ˆ Enter Payment 2 0 0 p Find Term/yrs T Periodic Term T Mortgage Amount... -
Page 17: Interest Rate
Interest Rate Find the interest rate on a mortgage if the mortgage amount is $155,500, term is 25 years and payment is $1,150 per month. STEPS Clear Enter Mortgage Enter Term Enter Payment 1 1 5 0 p Find annual Interest* Find periodic Interest... -
Page 18: Non-Monthly Mortgages And Payments Per Year (Pmt/Yr)
Enter number of payments per year: STEPS Clear To recall the currently stored number of payments, press ® ÷ : STEPS Clear IMPORTANT: Return your calculator to 12 payments per year (default): STEPS Clear OCKET KEYSTROKES 4 s ÷ (Pmt/Yr) KEYSTROKES ®... -
Page 19: Pith And Interest-Only Payment
PITH and Interest-Only Payment • Term: 25 years • Interest: 7% • Sales Price: $198,000 • Down Payment: 5% • Property Tax: 1.3% • Monthly heating expense: $100 Find the PITH payment and interest-only payment: STEPS Clear Enter Term Enter Interest 7 ˆ Enter Price Down% Set Tax%*... -
Page 20: Quarterly Payment
Quarterly Payment Find the quarterly payment on a 10-year, 12%-interest loan of $15,000. STEPS Clear Set to 4 Payments per year Enter Loan Enter Term Enter Interest 1 2 ˆ Find quarterly Payment Reset to 12 Payments per year Mortgage Amount Based on Sales Price and % Down Payment Find mortgage amount and dollar down payment if the price is $235,900 and... -
Page 21: Sales Price Based On Mortgage Amount And % Down Payment
Sales Price Based on Mortgage Amount and % Down Payment Find sales price if the mortgage amount is $150,000, down payment 5%, term 25 years and interest rate 7.75%. STEPS Clear Enter Mtg. Enter Down% 5 d Enter Term Enter Interest 7 • 7 5 ˆ Find Payment p Find $Down Find Price... -
Page 22: Future Value (Appreciation)
Future Value (Appreciation) What will a $250,000 home be worth in three years, figuring 6% appreciation? STEPS Clear Set 1 Payment per year Enter PV Enter Term Enter Appreciation Rate Find FV Return to 12 Payments per year OCKET KEYSTROKES 1 s ÷... -
Page 23: Amortization (Total Principal/Total Interest, Remaining Balance)
Amortization (Total Principal / Total Interest, Remaining Balance) • Mortgage: $175,000 • Term: 25 years • Interest: 7.5% Note: See large User’s Guide for more examples. Find total interest, principal and total pay- ments. Then, find the remaining balance after 10 years. STEPS Clear Enter Mtg. -
Page 24: Bi-Weekly Mortgages
Bi-Weekly Mortgages • Mortgage: $212,500 • Term: 25 years • Int: 7.85% Find Bi-Weekly term, savings, total cost and Bi-Weekly payment: STEPS Clear Enter Mtg. Enter Term Enter Interest 7 • 8 5 ˆ Find Payment p Find Bi-Weekly Term Find total Interest savings Find total Interest... -
Page 25: Setting Qualifying Ratios
Setting Qualifying Ratios In Canadian Mode, GDS:TDS (Gross Debt Service/Total Debt Service) ratios of 32% and 40% are permanently stored in the q key, and optional ratios of 35%- 42% in the Q key. However, you can enter any ratios you desire. For example, enter new qualifying ratios of 30% for GDS and 38% for TDS in q : STEPS... - Page 26 (Cont’d) Find qualifying mortgage amount, price and total payment: STEPS Clear Enter Income 4 5 ) i 45,000.00 Enter Debt Enter %Down 2 5 d Set Tax% Enter heating expense Enter Term Enter Interest 7 • 2 5 ˆ Enter Ratios Find maximum qualifying Mortgage Find Price...
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Page 27: Restricted" Vs. "Unrestricted" Qualifying
“Restricted” vs. “Unrestricted” Qualifying • Buyer’s Income: $52,000 • Monthly Debt: $150 • Down Payment: 5% • Property Tax: 1.5% • Monthly heating expense: $75 • Term: 25 years • Interest: 7.25% • GDS/TDS ratios: 32% – 40% Find the “Restricted” qualifying mortgage amount, actual ratios, “Unrestricted”... - Page 28 (Cont’d) STEPS Enter %Down Payment Display Qualifying Ratios Find “Restricted” or maximum Qualifying Mortgage Amount Find actual Ratios Find “Unrestricted” Mortgage Amount Find maximum allowable Debt *Note: The word “DEBT” displayed on your cal- culator tells you this Unrestricted Qualifying Mortgage Amount is based on the buyer’s Debt or TDS Ratio —...
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Page 29: Qualifying Comparison (Two Ratios At Once)
Qualifying Comparison (Two Ratios at Once) • Buyer’s Income: $50,000 • Monthly Debt: $125 • Property Tax: 1.25% • Monthly heating cost and condo fees: $120 • Down Payment: 10% • Term: 25 years • Interest: 7.25% Qualify this buyer based on both stored 32%:40% and 35%:42% ratios: STEPS Clear... - Page 30 (Cont’d) STEPS Find Qual 1 maximum Qualifying Mortgage Find Qual 1 P&I Payment Find Qual 1 PITH Payment — DO NOT CLEAR CALCULATOR — STEPS Display Qual 2 Ratios Find Qual 2 maximum Qualifying Mortgage Find Qual 2 P&I Payment...
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Page 31: Finding Income Required And Allowable Monthly Debt
Finding Income Required and Allowable Monthly Debt • Sales Price: $225,000 • Down%: 35% • Property Tax: 1.5% • Heating Expense: $125 • Term: 25 years • Interest: 7.5% Find the income required to finance a $225,000 home and also find the maxi- mum allowable debt. -
Page 32: Examples - U.s. Mode
Debt Find P&I Payment Find PITH EXAMPLES — U.S. MODE IMPORTANT: Your calculator must be in U.S. Mode by pressing s 9 . Monthly Loan Payment Find the monthly payment on a 30-year loan of $215,000 at 7.5% interest. -
Page 33: Setting Tax And Insurance
IMPORTANT: Change your calculator back to Canadian Mode if you are return- ing to Canadian examples. (Again press s 9 .) Setting Tax and Insurance Enter an annual property tax rate of 1.5%, a property/homeowner’s insurance rate of .25%, and a mortgage insurance rate of .50%:... -
Page 34: Piti Payment And Interest-Only Payment
PITI Payment and Interest-Only Payment • Term: 30 years • Interest: 6% • Sales Price: $255,000 • Down Payment: 5% • Property Taxes: 1.3% • Property Insurance: 0.25% • Mortgage Insurance: 0.50% • Monthly Association Dues: $60 Find the PITI, total and interest-only pay- ments: STEPS Clear... -
Page 35: Qualifying Loan Amount
Qualifying Loan Amount • Buyer’s Income: $100,000 • Monthly Debt: $550 • Down Payment: 25% • Property Tax: 1.5% • Property Insurance: 0.25% • Mortgage Insurance (not required): 0 • Term: 30 years • Interest: 6.25% • Qualifying Ratios: 28% – 36% Find qualifying loan, price and payment: STEPS Clear... -
Page 36: Arm Payment - Lifetime Cap
ARM Payment — Lifetime Cap • Loan: $330,000 • Term: 30 years • Interest: 7% • Lifetime Cap: 4% • ARM Interest Adj.: 1% per year Find the adjusted ARM payments through year six: STEPS Clear Enter Loan Enter Term Enter Interest 7 ˆ... - Page 37 (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 38: Apr And Total Finance Charges, Including Mortgage Insurance
APR and Total Finance Charges, Including Mortgage Insurance • Loan: $250,000 • Term: 30 years • Interest: 6.25% • Cost: 1.5 points + $550 • Mortgage Ins./MI: $1,200/year STEPS Clear Enter Loan Enter Term Enter Interest 6 • 2 5 ˆ Find P&I Pmt. -
Page 39: Estimated Tax Savings
Estimated Tax Savings • Loan: $150,000 • Buyer’s Tax Bracket: 28% • Term: 30 years • Interest: 6.75% • Property Taxes: $1,500 • Property Insurance: $250 Note: This is an estimate only. Consult a tax advisor. What is this buyer’s estimated income tax savings and “after tax”... -
Page 40: Rent Vs. Buy
Rent vs. Buy • Term: 30 years • Interest: 6.5% • 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 6 •... -
Page 41: Appendix
APPENDIX Default Settings Your calculator has the following default settings. Performing a Full Reset (e.g. - turn off calculator, hold down x and turn on) will return your calculator to the settings below: • Canadian Interest Mode • 12 Periods per Year •... -
Page 42: Warranty
BE DAMAGES RESULTING FROM MISUSE OR ABUSE. To obtain warranty service in the U.S., ship the product postage paid to Calculated Industries (address listed on the back cover). Please provide an explanation of the service requirement, your name, address, day phone number and dated proof of purchase (typically a sales receipt). -
Page 43: Fcc Class B
Class B computing device, pursuant to Subpart J of Part 15 of FCC rules. 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. -
Page 44: P Ocket R Eference G Uide
Calculated Industries, Inc. by Real Estate Master Technologies, LLC, 2004. Pocket Reference Guide copyrighted by Calculated Industries, Inc. © 2004. Qualifier Plus® and Calculated Industries® are registered trademarks of Calculated Industries, Inc. ALL RIGHTS RESERVED CALCULATED INDUSTRIES® 4840 Hytech Drive Carson City, NV 89706 U.S.A.
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