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Calculated Industries 3415 User Manual
Summary of 3415
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Q ualifier p lus ® iii x advanced residential real estate finance calculator with complete buyer qualifying model 3415 user s guide.
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U ser ’ s g uide — 1 the q ualifier p lus iii x was custom-designed for mortgage lenders and residential real estate professionals. With the push of a few buttons, it will pre-qualify prospective buyers instantly and solve hundreds of mortgage loan problems with ease! It’s the most complete and easy...
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2 — q ualifier p lus ® iii x getting started..........................................................................5 key definitions .........................................................................5 basic operation keys ..................................................................5 ...
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U ser ’ s g uide — 3 recalling tax and insurance % rates .......................................32 setting tax and insurance $ ......................................................32 calculating tax and insurance % or $ .......................................33 piti payment (tax and insurance enter...
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4 — q ualifier p lus ® iii x “unrestricted” qualifying ............................................................57 qualifying comparison (comparing 2 different loans or ratios at once) ..................................................................................58 finding income required and...
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U ser ’ s g uide — 5 key definitions basic operation keys o turns all power off. The memory and most financial registers are cleared. O 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, pay...
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6 — q ualifier p lus ® iii x s – change sign (+/–) — changes the sign of the dis- played value from positive to negative or vice versa. S x 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 ...
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U ser ’ s g uide — 7 ˆ interest — enters or solves for the annual interest rate. Second press gives the periodic rate. Note: stored permanently, until you change it or perform a clear all ( s x ). S l future value (fv) — enters or solves for the future value of a financial problem. P sales price — e...
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8 — q ualifier p lus ® iii x s ÷ 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 20). A amortization (amort) — finds t...
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U ser ’ s g uide — 9 a 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...
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10 — q ualifier p lus ® iii x rent vs. Buy keys s p rent vs. 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 s + , then enter the prospective buyer’s current rent and press s p . Conse...
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U ser ’ s g uide — 11 (cont’d) income ratio = total housing expense gross monthly income debt ratio = total housing expense + monthly debt gross monthly income note: typically, when figuring government loans (fha/va), these formulas also include estimated expenses for maintenance and utilities (adde...
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12 — q ualifier p lus ® iii x (cont’d) *note: the maximum qualifying loan amount is the “restricted” loan amount the buyer may qualify for. This loan amount is based on whichever of the two ratios — income or debt — limits the buyer the most. The unrestricted qualifying loan amount, however, is the ...
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U ser ’ s g uide — 13 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): t property tax — used for calculating piti and total payment, and qualifying. Stores estimated an...
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14 — q ualifier p lus ® iii x note: entering a number equal to or less than 10 is assumed to be an annual percentage. Mortgage insurance is calculated from the loan amount. Note: tax and insurance entered as dollar amounts will remain fixed, even if sales price or loan amount is changed. However, if...
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U ser ’ s g uide — 15 * * and s * (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 and 2nd interest:term) will calculate: press calculation 1 combo loan c...
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16 — q ualifier p lus ® iii x 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 = 5.00 b. 3 – 2 = 1.00 c. 3 x 2 = 6.00 d. 3...
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U ser ’ s g uide — 17 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 doll...
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18 — q ualifier p lus ® iii x 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...
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U ser ’ s g uide — 19 calculator settings decimal place selection with the s key, you have the option of selecting the number of decimal places you’d like to display. The values are rounded using conventional 5/4 rounding. You can do this prior to finding an answer or afterwards. Press s followed by...
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20 — q ualifier p lus ® iii x 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 m...
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U ser ’ s g uide — 21 (cont’d) after s , keep description pressing (press + to advance = : display within each category, – to back up): 4 mortgage insurance (mi) - clr-clr m ins — clears mortgage insurance (% and $) upon o o . (default) - clr off m ins — clears mortgage insurance (% and $) at o . - ...
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22 — q ualifier p lus ® iii x memory 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 keystrokes recall total in memory ® µ ...
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U ser ’ s g uide — 23 memory storage keys (m0-m6) in addition to the standard cumulative memory (as described above), your calculator has six independent storage registers — [m0] through [m6] — that can be used to permanently store single, non- cumulative values. These values will be held when your ...
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24 — q ualifier p lus ® iii x additional memory storage keys (m10-m19) in addition to m0-m6 (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 s...
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U ser ’ s g uide — 25 mortgage loans/time-value-of-money (tvm) 1. The basic loan keys — l , p , t and ˆ — 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 vari- ables and press the key for the unknown fourth var...
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26 — q ualifier p lus ® iii x 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 keystrokes display clear calculator o o 0.00 enter loan amount 2 6 5 ) l * 265,000.00 enter ter...
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U ser ’ s g uide — 27 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 o o 0.00 enter interest 7 ...
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28 — q ualifier p lus ® iii x 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? *this is a simple math problem and does not require the use of tvm keys. Steps keystrokes display clear calculator o o 0.00 multiply loan amoun...
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U ser ’ s g uide — 29 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: s ÷ . For example, here's how to set your calculator to four pay- men...
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30 — q ualifier p lus ® iii x 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 a...
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U ser ’ s g uide — 31 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 ad...
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32 — q ualifier p lus ® iii x setting tax and insurance % 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 1 • 5 t 1.50 set insurance rate • 2 5 i 0.25 set mortgage insurance ra...
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U ser ’ s g uide — 33 calculating tax and insurance % or $ if loan variables are entered in addition to tax and insurance per- centage rates or dollar values, the respective dollar values or per- centage rates can be computed by simply pressing the applicable keys a second time. For example, enter a...
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34 — q ualifier p lus ® iii x piti payment (tax and insurance entered as %) find the 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 prop- erty taxes are estimated at 1.3%, annual property insurance at 0.25%, and annual mortgage ins...
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U ser ’ s g uide — 35 (cont’d) steps keystrokes display find p&i payment p “run” 1,681.74 find piti payment p 2,315.07 find total payment (piti plus monthly expenses) p 2,465.07 find interest-only payment p 1,402.50 estimated income tax savings and “after-tax” payment important note: this example es...
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36 — q ualifier p lus ® iii x 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...
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U ser ’ s g uide — 37 adjustable rate mortgages using the a 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 ini...
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38 — q ualifier p lus ® iii x arm payment — worst-case scenario find the initial monthly 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 0.5% at the end of each year. Then, find...
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U ser ’ s g uide — 39 arm payment — using lifetime cap using the previous mortgage, add a lifetime cap of 4% and find the adjusted payments through year ten. You will need to re-enter the loan amount, term and interest. Steps keystrokes display clear calculator o o 0.00 enter loan amount 1 7 6 ) l 1...
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40 — q ualifier p lus ® iii x decreasing arm payment calculate the initial monthly payment on a 30-year, $250,000 arm loan at 5% interest, and then find the second and third years' adjust- ed payments if the loan's interest rate decreases 1% at the end of each year. Steps keystrokes display clear ca...
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U ser ’ s g uide — 41 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 pa...
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42 — q ualifier p lus ® iii x (cont’d) 6. If the first payment of a loan begins in a month other than janu- ary, 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 s a...
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U ser ’ s g uide — 43 amortization list for individual 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 monthly payment to “set-up” this loan. The calculat...
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44 — q ualifier p lus ® iii x amortization list for individual year(s) — using month offset the 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 mo...
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U ser ’ s g uide — 45 amortization list for individual payment(s) for a $175,000 loan at 6.85% interest for 30 years, find out how much interest and how much principal you’ll pay in the first and sec- ond payments. Note: use the s b keys to label the payments. Steps keystrokes display clear calculat...
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46 — q ualifier p lus ® iii x amortization list for a range of payments or years for a $225,000, 30-year loan at 7.4% interest, find out how much interest and principal you'll pay in payments 1-9, and then for years 1-10. Steps keystrokes display clear calculator o o 0.00 enter loan amount 2 2 5 ) l...
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U ser ’ s g uide — 47 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 f...
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48 — q ualifier p lus ® iii x 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 k...
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U ser ’ s g uide — 49 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 yea...
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50 — q ualifier p lus ® iii x bi-weekly term reduction and payment find the monthly p&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...
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U ser ’ s g uide — 51 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 incom...
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52 — q ualifier p lus ® iii x what should you pay for this trust deed if you want an 18% yield on your investment? Steps keystrokes display enter your desired yield 1 8 ˆ 18.00 find purchase price l “run” 5,530.99 finding the value and discount of a trust deed determine the value and discount requir...
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U ser ’ s g uide — 53 buyer qualifying the qualifying keys were designed specifically for mortgage lend- ers/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 afforda...
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54 — q ualifier p lus ® iii x 5. When calculating annual income required (based on entered loan amount or sales price, term, interest and stored qualifying ratios), the first press of q or q will display your stored ratios, the second press in succession will display the annual income required, and ...
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U ser ’ s g uide — 55 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 q 28%:36% qualifying ratios, for what size loan and what sales price can a buyer qualify for if he or she makes $75,000 ann...
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56 — q ualifier p lus ® iii x 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) wish to buy a lower-priced home and c...
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U ser ’ s g uide — 57 “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- ye...
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58 — q ualifier p lus ® iii x 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 t...
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U ser ’ s g uide — 59 finding income required and allowable monthly debt using the stored q 28%:36% ratios, how much income would a buyer need to finance a $250,000 home if they put 20% down? What is the maximum allowable debt? What is the dollar down pay- ment and loan amount? What is the monthly p...
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60 — q ualifier p lus ® iii x 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%, respecti...
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U ser ’ s g uide — 61 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 ...
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62 — q ualifier p lus ® iii x 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, or pmi. You have the following parameters: fixed-rate f...
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U ser ’ s g uide — 63 (cont’d) steps keystrokes display 3. Find 80:10:10 combo loan and comparison values (vs. Fixed- rate loan with mortgage insurance): find 1st:2nd combined (blended) interest rate * 8.11 find equivalent interest rate of single, fixed-rate loan with mortgage insurance * 9.95 find ...
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64 — q ualifier p lus ® iii x 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 over that of a standard, fixed-rate loan with mortgage insur- ance or pmi. The ltv for the 1st/2nd td is 80/15. See the following param...
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U ser ’ s g uide — 65 (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 s * (80:15:5) 8.16 find equivalent interest rate of single, fixed-rate loan with mortgage insurance * 9.95 find ...
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66 — q ualifier p lus ® iii x combo loan — entering a new ltv you’d like to show your client the savings of a fixed-rate combo loan over that of a standard, fixed-rate loan with pmi. The ltv for the 1st/2nd td is 90%-5%. See the following parameters: fixed-rate fixed-rate combo loan loan w/pmi (1st ...
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U ser ’ s g uide — 67 (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 1st:2nd blended interest rate 9 0 : 5 * 8.05 find equivalent interest rate of fixed-rate loan with mortgage insurance/mi * 9.95 fi...
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68 — q ualifier p lus ® iii x default settings performing a total reset (see below) will return the calculator to the following default settings: • two fixed decimal places • 12 periods per year = reset to 12 upon o • property tax/insurance = values cleared upon o • mortgage insurance. = values clea...
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U ser ’ s g uide — 69 auto shut-off your calculator is designed to shut itself off after about 8-12 minutes of non-use. Batteries should the display become very dim or erratic, replace the batteries. Batteries included: two lr44 (1.5v) batteries battery-life (actual use): 1,000 hours ❑ note: please ...
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70 — q ualifier p lus ® iii x 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- ...
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U ser ’ s g uide — 71 disclaimer ci makes no warranty or representation, either express or implied, with respect to the product’s quality, perfor- mance, merchantability, or fitness for a particular pur- pose. As a result, this product, including but not limited to, keystroke procedures, mathematica...
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72 — q ualifier p lus ® iii x 1st and 2nd trust deeds (combo loans), 61 1st/2nd td (combo loan) keys, 14 actual qualifying ratios, solving for, 60 adjustable rate mortgages, 37 amortization and remaining balance, 41 amortization list for a range of payments or years, 46 amortization list for individ...
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U ser ’ s g uide — 73 monthly mortgage (p&i) payment, 26 mortgage loan (tvm) keys, 6 mortgage loans/time-value-of-money (tvm) examples, 25 non-monthly loans, 29 odd-days interest and apr, 48 paying off a loan early (making larger payments), 27 percentage calculations, 16 piti payment (tax and insura...
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74 — q ualifier p lus ® iii x notes.
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U ser ’ s g uide — 75 notes.
Page 77: 3415Ug-E-D
Designed in the united states of america printed in china 3415ug-e-d.