Related Manuals for Calculated Industries 3430
Summary of Contents for Calculated Industries 3430
- Page 1 UALIFIER ® ADVANCED REAL ESTATE FINANCE CALCULATOR with CASH FLOW and COMPLETE BUYER QUALIFYING Model 3430 Pocket Reference Guide...
- Page 2 UALIFIER The Q UALIFIER ify clients and compute 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 • Qualifying Using Flexible Ratios • Property Tax and Insurance, Mortgage Insurance •...
-
Page 3: Table Of Contents
TABLE OF CONTENTS Date Example ...10 Monthly Mortgage (P&I) Payment ...10 Loan Amount...11 Loan Amount Based on Sales Price and Down Payment ...12 Interest Rate ...12 Term of a Loan ...13 Setting Tax and Insurance ...14 PITI Payment, Total Payment and Interest-Only Payment...15 Quarterly Payment...16 Amortization...17... - Page 4 Qualifying Comparison (2 Ratios at Once)...31 Income Required and Allowable Monthly Debt ...33 80:10:10 Combo Loan vs. Fixed-Rate Loan with Mortgage Insurance...35 Cash Flow...38 APPENDIX ...40 Default Settings ...40 Decimal Place Setting ...40 Preference Settings ...41 Batteries...41 Reset ...41...
-
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 (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 chosen key (e.g., ®... - Page 6 Sets number of displayed decimal places and acti- vates 2nd functions Change sign Clear All (Note: perform with caution as it will reset calculator to defaults) Preference mode (see Large User’s Guide for details) Payments per year (Default 12, for monthly)
- Page 7 ˆ s ˆ OCKET Number of years Annual interest rate or cash flow desired rate of return Future value APR (annual percentage rate), including mortgage insurance, if entered Property price Down payment Bi-Weekly loan Amortization function Remaining balance Adjustable-rate mortgage ARM decreasing interest % adjustment ARM lifetime interest cap%...
- Page 8 OCKET Long-term, monthly debt (e.g., car payment) Property tax (enter as per- cent or dollar amount) 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 *). Combo loan function for an 80:15:5 loan;...
- Page 10 OCKET Multi-function key that computes, upon consecu- tive presses: IRR%, NPV & NFV used for cash flow analysis. (The greater the IRR and NPV, the more attractive the investment) Clear cash flows EFERENCE UIDE — 6...
-
Page 11: Examples
EXAMPLES Date Example If a 45-day escrow begins June 15 2004, what is the closing date and day? STEPS Clear Enter month Enter day Enter year Add 45 days 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... -
Page 12: Loan Amount
Loan Amount Approximately how much can you borrow if the interest rate is 6.5% on a 30-year loan and you can afford $1,500 in month- ly payments? What if the interest rate is lowered to 6%? STEPS Clear Enter interest 6 • 5 ˆ Enter term Enter payment 1 5 0 0 p Find loan... -
Page 13: Loan Amount Based On Sales Price And Down Payment
Loan Amount Based on Sales Price and Down Payment Find both $ down payment and loan amount if the sales price is $375,500 and you're planning to put 20% down: STEPS Clear Enter price Enter down% 2 0 d* Find down$ Find loan *You do not have to label the value as a percent. -
Page 14: Term Of A Loan
Term of a Loan How long does it take to pay off a loan of $15,000 at 10% interest if you make pay- ments of $200 each month? STEPS Clear Enter loan Enter interest 1 0 ˆ Enter payment 2 0 0 p Find term in years Number of... -
Page 15: Setting Tax And Insurance
Setting Tax and Insurance Enter an annual property tax rate of 1.5%, a hazard insurance rate of 0.25% and a mortgage insurance rate of 0.50%: STEPS Enter tax%* Enter insurance%* Enter mortgage insurance%* • 5 0 s 9 *Note: Do not label as a percent, or use the % key;... -
Page 16: Piti Payment, Total Payment And Interest-Only Payment
Enter insurance% Enter MI% Find loan Find P&I payment Find PITI payment — DO NOT CLEAR CALCULATOR — OCKET KEYSTROKES 3 0 T 3 2 5 ) P 1 • 3 s 7 • 2 5 s 8 • 4 5 s 9 “run”... -
Page 17: Quarterly Payment
Find the total payment, if you estimate homeowner’s association fees at $80/month. Also find the interest-only payment: STEPS Enter expenses 8 0 e Find total payment Find interest-only payment Quarterly Payment Find the quarterly payment on a 10-year loan of $15,000 with an annual interest rate of 12%: STEPS Clear... -
Page 18: 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 19: 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 payment p Find Bi-Weekly term Find total interest... -
Page 20: Appreciation
Appreciation What will a $350,000 home be worth in 3 years, figuring an inflation or appreciation rate of 6%? STEPS Clear Set to 1 payment per year Enter present value Enter term Enter appreciation rate Find future value (FV) Reset payments per year OCKET KEYSTROKES... -
Page 21: Retirement Savings
Retirement Savings If you invest $10,000 today and $250 in monthly deposits, what will it be worth in 30 years at 7% interest*? STEPS Clear Recall payments per year Enter deposit 1 0 ) l 10,000.00 Enter term Enter interest 7 ˆ Find FV Add to M+ Clear... -
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: Arm Payment - Lifetime Cap
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 24 (Cont’d) STEPS Find 3rd “adjusted” payment Find 4th “adjusted” payment Find 5th “adjusted” payment Find principal at start of 6th 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.
-
Page 25: 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 26: 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 7 •... -
Page 27: Setting Qualifying Ratios
Setting Qualifying Ratios Enter new qualifying ratios of 30% for Income and 38% for Debt in q: STEPS Clear Enter qualifying ratios Return ratios to defaults Qualifying Loan Amount • Buyer’s income: $75,000 • Monthly debt: $500 • Down$: $5,000 •... - Page 28 Enter interest 7 • 5 ˆ Enter term Display ratios q 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...
-
Page 29: 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 30 Enter down Enter income 6 8 ) i Enter monthly debt Display qualifying ratios Find “Restricted” qualifying loan amount — DO NOT CLEAR CALCULATOR — OCKET KEYSTROKES 5 0 e 5 ) d 7 5 0 D EFERENCE UIDE DISPLAY 0.25...
- Page 31 (Cont’d) STEPS Find actual ratios Find “Unrestricted” loan amount Find maximum allowable monthly debt *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.
-
Page 32: Qualifying Comparison (2 Ratios At Once)
Qualifying Comparison (2 Ratios at Once) • Buyer’s income: $55,000 • Monthly debt: $500 • Property taxes: 1.25% • Property insurance: 0.3% • Mortgage insurance: 0.45% • Monthly association dues: $50 • Term: 30 years • Interest: 6.25% Qualify this buyer based on both 28%:36% and 29%:41% ratios: STEPS Clear... - Page 33 Find Qual 1 qualifying loan Find Qual 1 P&I payment Find Qual 1 PITI Payment Find total payment — DO NOT CLEAR CALCULATOR — STEPS Display Qual 2 ratios Find Qual 2 qualifying loan Find Qual 2 P&I payment Find Qual 2 PITI...
-
Page 34: Income Required And Allowable Monthly Debt
Income Required 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 35 (Cont’d) STEPS Find loan Display qualifying ratios Find income required Find maximum allowable monthly debt Find P&I payment Find PITI payment OCKET KEYSTROKES EFERENCE UIDE DISPLAY 240,000.00 28.00 - 36.00 79,626.76 530.85 1,420.46 1,857.96 — 31...
-
Page 36: 80:10:10 Combo Loan Vs. Fixed-Rate Loan With Mortgage Insurance
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 STEPS 1. Enter Fixed-Rate Loan Values and Find Total Payment: Clear Enter loan Enter interest Enter term... - Page 37 (Cont’d) STEPS Clear Tax Clear Insurance 0 s 8 Solve for payment Solve for PITI (including PMI) 2. Enter Combo Loan Values: Enter 1st TD Interest and Term Enter 2nd TD Interest and Term 8 • 5 : 1 5 s 3.
- Page 38 (Cont’d) STEPS Find equivalent payment for fixed-rate loan with mortgage insurance * Display monthly savings over fixed-rate loan with mortgage insurance * Display adjusted 2nd term (if savings applied to 2nd TD) Find 1st TD loan amount Find 2nd TD loan amount Find 1st TD payment...
-
Page 39: Cash Flow
Cash Flow A real estate investor wishes to purchase a home for $225,000 and rent it out. He’d like a return of 9% and expects to sell it after 5 years for $275,000. He expects the annual cash flows below. Find the IRR, NPV &... - Page 40 (Cont’d) STEPS Enter 3rd CF 1 6 9 0 0 c Enter 4th CF 1 7 2 0 0 c Enter last CF 2 7 5 ) c Find IRR Enter desired rate of return and find NPV Find NFV Re-display desired rate of return Clear registers s x...
-
Page 41: Appendix
APPENDIX Default Settings • 12 Periods per Year • End Mode • Property Tax/Insurance = Clears Upon O • Mortgage Insurance = Clears upon o o • Month Offset of January (1) • Two Fixed Decimal Places • Amortization Range = Specified Year (Ent-Ent) •... -
Page 42: Preference Settings
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. — 38 OCKET...