Calculated industries 4065: user guide (110 pages)
Summary of Contents for Calculated Industries 3430
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UALIFIER ® ADVANCED RESIDENTIAL REAL ESTATE FINANCE CALCULATOR with CASH FLOW and COMPLETE BUYER QUALIFYING Model 3430 • Qualifier Plus ® Model 43430 • Qualifier Plus FX Desktop ®...
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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...
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Total Payment (Including Expenses) and Interest-Only Payment...34 Amortization and Remaining Balance...35 Notes on Amortization...35 Total Principal and Interest for a 30-Year Loan ...37 Balloon Payment/Remaining Balance Needed to Pay Off a Loan...37 Amortization List for Individual Year(s) — Using “Next” Feature ...38 Amortization List for Individual Year(s) —...
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Qualifying Loan Amount and Sales Price (Complete Example Including Down Payment, Tax/Insurance, Monthly Association Dues) ...61 “Restricted” Qualifying ...62 “Unrestricted” Qualifying ...63 Qualifying Comparison (Comparing Two Different Loans or Ratios at Once)...64 Finding Income Required and Allowable Monthly Debt ...65 Solving for Actual Qualifying Ratios...66 1ST AND 2ND TRUST DEEDS (COMBO LOANS) ...67 Combo Loan (80:10:10) vs.
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).
s – 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.
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ˆ Interest — Enters or solves for the annual interest rate. Second press gives the periodic rate. Note: Stored permanently, until you change it. Future 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.
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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 *You may enter any tax bracket (e.g., 30%, press 3 0 s + and recalculate amortization values).
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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).
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): Property Tax (Tax) — Used for calculating PITI and Total payment, and Qualifying. Stores estimated annual property tax in either percent or dollar amount.
(See the a key definition on page 8 for details). DESKTOP MODEL ONLY: † Your calculator has a dedicated Tax Savings key that operates as identified above. ’ — 11...
(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...
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(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.
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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).
1st & 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 l, p, ˆ...
(Cont’d) Press Display or Calculation 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).
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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 c key, then enter the frequency, or number of occur- rences (3 s c).
BASIC ARITHMETIC EXAMPLES Arithmetic This calculator uses standard chaining logic, which simply means that you enter your first value, the operator (+, –, x, ÷), the sec- ond value and then the equals sign (=). A. 3 + 2 = B.
5%. Calculate both the amount of reduction in dollars and the new, lowered listing price. STEPS Clear calculator Enter sales price Subtract 5% Find new listing price Simple 1-Year Home Appreciation (Add-on %) Properties in your area have been going up in value about 6% per year.
For exam- ple, if a 45-day escrow begins April 26, 2007, what is the closing date and day? STEPS Clear calculator Enter month Enter day Enter year Add 45 days...
To return to the standard two-decimal place setting, press s 2. Note: This setting will remain until you turn your calculator off, perform a Clear All (s x), 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”...
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 s, then =, then keep pressing = to toggle through the settings listed below.
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(Cont’d) After s, Keep Pressing Display Mortgage Insurance (MI) - Clr-Clr M Ins — - Clr OFF M Ins — - HOLD Pct. M Ins — - HOLD ALL M Ins — Amortization/Single Entries - AMRT Ent-Ent — - AMRT 1-Ent — Display Qualifying Ratios - Q-R PRESS 1 —...
Accumulative Memory Whenever the μ 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 Recall total in Memory...
Storage Registers — M0 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 s x).
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Additional Memory Storage Keys (M10-M19) In addition to M0-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: s ®...
4. 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 o twice after completing a finan- cial problem to ensure that you have cleared the previous l and p registers.
Finding the Monthly Mortgage (P&I) Payment Find the monthly P&I (principal and interest) payment on a 30-year, fixed-rate mortgage of $265,000 at 6.75% annual interest. STEPS Clear calculator Enter Loan Amount Enter Term in years Enter annual Interest rate Find monthly P&I Payment p *Note: Use the ) key to save keystrokes.
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 Clear calculator Enter Loan Amount Enter annual Interest rate Enter monthly Payment...
Find future value 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).
However, you may use the Preference Settings (s =) 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.
Recall insurance rate Recall mortgage insurance rate 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).
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 amounts, or premiums: STEPS Clear calculator Enter property Tax rate Enter insurance rate Enter Mortgage Insurance rate...
$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 Clear calculator Enter Term in years Enter annual Interest rate Enter sales Price...
5. In some cases, it is the practice to include a final, regular P&I payment 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.
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(after remaining balance is displayed), if a tax bracket is also entered via s + (Tax Brkt%). Note: If a tax bracket percent is not entered, the calculator will use the default of 28%, displayed upon ® +.
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 Clear calculator Enter Loan Amount Enter annual Interest rate Enter Term in years Find monthly P&I Payment p...
$90,000 loan at 8% interest during the first year? The second year? Third year, etc.? First, find the monthly P&I payment to “set-up” this loan. The calculator will automatically advance to the next year upon subsequent presses of a. Note: The mortgage interest tax deduction is based on the default tax bracket of 28% unless you have changed it via s +.
P&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 s +. Calculator will automatically advance to the next year upon subsequent presses of a.
Payment #1 Display Payment #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.
Find remaining term Find mortgage interest deduction for Payments #1-9 — 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.
Bi-Weekly Loans Your calculator includes a Bi-Weekly loan function (s T) 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 per year (i.e., 26 Bi-Weekly payments is like making 13 payments/year),...
Find total principal Find total principal and interest Find Bi-Weekly P&I Payment p Clear calculator** *Notice you save a significant amount (over $65K in this example) with a Bi-Weekly. **Note: Return to monthly payment mode by pressing o twice. Future Value Given any four components to a problem that includes a future value, you can calculate the fifth.
*Calculator must be set to default of 12 periods per year, for compounding monthly. If it isn’t, enter 1 2 s ÷. If you need to set the calculator to compounded interest other than monthly, enter the number of periods, then s ÷ (e.g., for interest com- pounded quarterly, enter 4 s ÷).
Preference Settings Set back to End Mode *Calculator must be set to default of 12 periods per year, for compounding monthly. If it isn’t, enter 1 2 s ÷. **Ignore the negative sign; in this case, it is a positive value.
Reset to 12 payments/year 1 2 s ÷ 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 ˆ...
*Note: Pressing s b identifies your entry as a periodic value. For desktop model, press π T to perform this function. — DO NOT CLEAR CALCULATOR — What should you pay for this trust deed if you want an 18% yield on...
Compute value of mortgage l Subtract from Memory Compute discount (recall memory) Clear memory* *Note: Pressing ® ® or turning the calculator O will clear the value stored in Memory. 48 — Q UALIFIER KEYSTROKES 7 5 ) l μ...
(that is, enter three known variables and solve for the fourth) and (2) combine points and fees and press s ˆ (APR) to solve APR. If you continue to press ˆ, 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).
— 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.
4. To calculate a “decreasing ARM,” enter the two ARM parame- ters, but press the s key before pressing A. 5. The calculator includes a “lifetime cap” (i.e., the maximum amount the interest rate may increase over the life of a loan).
“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 Clear calculator Enter Loan Amount Enter Term in years Enter annual Interest rate Find initial monthly P&I...
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 Clear calculator Enter Loan Amount Enter Term in years Enter annual Interest rate Find monthly P&I Payment...
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 Clear calculator Enter Loan Amount Enter Term in years Enter annual Interest rate Find initial monthly P&I...
Find monthly tax savings Find “after-tax” Payment *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 Set Month Offset to July...
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 Clear calculator Enter annual Interest rate Enter Term in years Enter Down Payment %...
1. The q and Q 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.
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(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 q or Q keys give the following results: the first press of q or Q will display your stored ratios; •...
Recalling Income/Debt Qualifying Ratios Recall stored 28%-36% and 29%-41% ratios: STEPS Clear calculator Recall Qualifying Ratios 1 Recall Qualifying Ratios 2 Storing New Income/Debt Qualifying Ratios Enter and permanently store new qualifying ratios of 30% for Income...
Find monthly P&I Payment p *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...
Recall annual Interest rate* ® ˆ Recall Term* in years Display Qualifying Ratios Find Qualifying Loan Amountq Find Price — DO NOT CLEAR CALCULATOR — Now find the monthly P&I payment, PITI payment, total payment, and interest-only payment: STEPS Find monthly P&I Payment p...
Display Qualifying Ratios Find “restricted” Qualifying Loan Amount q — 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) “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% qualifying 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...
Find monthly P&I Payment p Find monthly PITI Payment p Find total monthly Payment p Find monthly interest-only Payment — DO NOT CLEAR CALCULATOR — STEPS Display Qual 2 stored Ratios Q Find Qual 2 Loan Amount Find monthly P&I Payment p...
Estimate property tax/insurance rates of 1.5% and 0.25%, respectively. Clear mortgage insurance rate to zero, as they are put- ting 20% down. STEPS Clear calculator Enter annual Iinterest rate 6 • 7 5 ˆ Enter Term in years Enter tax rate...
$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 Clear calculator Enter annual Interest rate Enter Term in years Enter Loan Amount...
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.
LOAN w/MI Loan Amount 100,000 Interest Term STEPS 1. Enter Fixed-Rate Loan Values and Find Total Payment: Clear calculator Enter Loan Amount Enter Down Payment Enter annual Interest rate 7 ˆ Enter Term in years Enter MI (mortgage insurance) rate...
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(Cont’d) STEPS 3. Find 80:10:10 Combo Loan and Comparison Values (vs. Fixed- Rate Loan with Mortgage Insurance): Find 1st:2nd combined (blended) interest rate Find equivalent interest rate of single, fixed-rate loan with MI Find total combined (1st/2nd) payment Find equivalent payment of single, fixed-rate loan with MI Find monthly savings over fixed-rate loan with MI...
LOAN w/MI Loan Amount 100,000 Interest Term STEPS 1. Enter Fixed-Rate Loan Values and Find Total Payment: Clear calculator Enter Loan Amount Enter Down Payment Enter annual Interest rate 7 ˆ Enter Term in years Enter MI (mortgage insurance) rate...
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(Cont’d) STEPS 3. Find 80:15:5 Combo Loan and Comparison Values (vs. Fixed- Rate Loan with Mortgage Insurance): Find 1st:2nd blended interest rate Find equivalent interest rate of single, fixed-rate loan with MI Find total combined (1st/2nd) payment Find equivalent payment of single, fixed-rate loan with MI Find monthly savings over fixed-rate loan with MI...
LOAN w/MI Loan Amount 100,000 Interest Term STEPS 1. Enter Fixed-Rate Loan Values and Find Total Payment: Clear calculator Enter Loan Amount Enter Down Payment Enter annual Interest rate 7 ˆ Enter Term in years Enter MI (mortgage insurance) rate...
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(Cont’d) STEPS 3. Find 90:5:5 Combo Loan and Comparison Values (vs. Fixed-Rate Loan with Mortgage Insurance): Enter LTV and find 1st:2nd blended interest rate Find equivalent interest rate of fixed-rate loan with MI Find total combined (1st/2nd) payment Find equivalent payment of fixed-rate loan with MI Find monthly savings over fixed-rate loan with MI...
Enter annual Interest rate 6 ˆ Calculate monthly MI premium Enter monthly MI premium into mortgage insurance — DO NOT CLEAR CALCULATOR — 3. Enter loan values: Enter Loan Amount Enter Term in years Enter annual Interest rate 6 ˆ...
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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.
CASH FLOW EXAMPLES Your calculator has easy-to-use cash flow keys 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.
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IRR, NPV, and NFV Functions The R key is multifunctional, and consecutive presses calculate: • the annual Internal Rate of Return (IRR%); • 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);...
Calculating IRR, NPV, and NFV for Annual Cash Flows A real estate investor wishes to purchase/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.
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.
(Cont’d) Recalling and Replacing Cash Flows STEPS 1) Recall all cash flows and frequencies: Initial Cash Flow 1st Cash Flow 1st Cash Flow frequency c 2nd Cash Flow 2nd Cash Flow frequency c 3rd Cash Flow 3rd Cash Flow frequency c 4th Cash Flow 4th Cash Flow frequency c 2) Recall a specific cash flow (in this example, the first cash flow):...
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 values). To do this, turn off the calculator, hold down the x key, and then turn it back on.
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 • Qualifier Plus III...
Warranty Warranty Repair Service – U.S.A. Calculated Industries (“CI”) 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, CI at its option will either repair (using new or remanufactured parts) or replace (with a new or remanufactured calculator) the product at no charge.
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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.
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.
Basic Operation Keys, 5 Batteries, 82 Bi-Weekly Loans, 42 BUYER QUALIFYING, 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...
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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 — Calculating IRR, NPV and NFV for Monthly Cash Flows, 79 Real Estate Investment —...
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Designed in the United States of America Printed in China 8/07 UG3430E-E...
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