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Calculated Industries 3420 User Manual
Summary of 3420
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Q ualifier p lus ® iii x professioinal residential real estate finance calculator with built-in canadian interest mode model 3420 user’s guide c anadian 3420 ug cvr 7/6/04 1:57 pm page 1.
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U ser ’ s g uide — 1 the canadian qualifier plus iiix was designed specifically for mort- gage lenders, residential real estate agents and brokers for quick mortgage calculations in the office or out in the field. It’s the most complete and intuitive calculator of its kind. With the push of a few bu...
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2 — q ualifier p lus ® iii x getting started ..........................................................................6 key definitions .........................................................................6 basic operation keys ..................................................................6...
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U ser ’ s g uide — 3 setting property tax $................................................................32 pith payment (including heating expense) .............................32 pith payment (including heating expense and property tax entered as %) .................................................
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4 — q ualifier p lus ® iii x examples — u.S. Mode .............................................................54 finding the monthly loan payment (based on u.S. Interest rate) .......................................................................................54 property taxes, property/hazard i...
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U ser ’ s g uide — 5 warranty.....................................................................................77 legal notes ................................................................................78 looking for new ideas ..............................................................78 i...
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6 — q ualifier p lus ® iii x key definitions basic operation keys o turns all power off. The memory and most financial registers are cleared. O if calculator is off, turns power on. If calculator is on, a single press clears the last entry while a second press in succession clears non-permanent entr...
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U ser ’ s g uide — 7 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 year, etc. Back to their defaults (see the appendix for a list of these settings). Note: clear all will not affect ...
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8 — q ualifier p lus ® iii x t enters or solves for the number of years. Second press gives the number of periods. An entered term greater than 45 will be classified as periodic, not annual. Note: stored permanently, until you change it or perform a clear all ( s x ). You may enter a periodic term, ...
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U ser ’ s g uide — 9 s ÷ payments per year — 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 17). A amortization (amort) — finds total interest, pr...
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10 — q ualifier p lus ® iii x s : odd-days interest — calculates the pre-paid inter- est, or simple interest accumulated (based on a 360-day year) during the days before the first mort- gage payment is made, using the interest rate stored in the interest register. S t bi-weekly (bi-wkly) — converts ...
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U ser ’ s g uide — 11 (cont’d) 1) stores canadian gds:tds ratios for mortgage qualifying. Entered ratios are separated by the colon : key. For example, income and debt ratios of 32% and 40%, respectively, are entered and per- manently stored as follows: 3 2 : 4 0 q . Default income and debt ratios f...
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12 — q ualifier p lus ® iii x (cont’d) note: this restricted/unrestricted qualifying mortgage comparison is useful to show clients what size loan they could qualify for if they paid off debt or increased income. 3) calculates the annual income required and allowable monthly debt for a desired mortga...
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U ser ’ s g uide — 13 t property tax — used for calculating piti and total (pith) payment, and qualifying. Stores estimated annual property tax in either percent or dollar amount. If entered as an annual dollar amount, a press of t converts to the monthly tax amount, and pressing t again converts to...
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14 — q ualifier p lus ® iii x s p estimated income tax savings (tax svgs) — calculates an estimated annual income tax savings for a mortgage, based on entered loan variables, including property tax, mortgage interest, and tax bracket. You must enter a tax bracket, then press s p p to display the est...
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U ser ’ s g uide — 15 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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16 — q ualifier p lus ® iii x canadian / u.S. Mode your calculator is factory-set to canadian (interest) mode. If you need to calculate loan problems using u.S. Interest, you must change the calculator to u.S. (interest) mode. To easily switch your calculator from canadian mode to u.S. Mode, press t...
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U ser ’ s g uide — 17 preference settings your calculator has a preference mode, which allows you to program the calculator to various settings. For example, it allows you to store certain values permanently, display certain values, or show values in a specific order. To access the preference mode, ...
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18 — q ualifier p lus ® iii x (cont’d) after s , keep description pressing (press + to advance = : display within each category): 4 mortgage insurance (mi)—u.S. Only - 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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U ser ’ s g uide — 19 memory accumulative memory µ 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 displa...
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20 — q ualifier p lus ® iii x 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 wh...
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U ser ’ s g uide — 21 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 storage r...
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22 — 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 — 23 figuring straight % commission the commission for the listing office is 3%. If the property sells for $157,900, what is the listing office’s commission? Steps keystrokes display clear calculator o o 0.00 enter sales price 1 5 7 9 0 0 157,900. Multiply by commission % x 3 % = 4,...
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24 — q ualifier p lus ® iii x using the 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 numer...
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U ser ’ s g uide — 25 mortgage / time-value-of-money (tvm) 1. The financial functions — mortgage amount, payment, interest, term — work just like you would say them. For example, if you wanted to borrow $100,000 for 25 years at 8% interest, just enter those three known variables and press the key fo...
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26 — q ualifier p lus ® iii x (cont’d) important note: all of the following examples can also be per- formed while the calculator is in u.S. Mode. See canadian/u.S. Modes on page 16. Just be sure to change the term from 25 to 30 years, where applicable, and of course, the answers will change due to ...
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U ser ’ s g uide — 27 paying off a mortgage early (making larger payments) how long does it take to pay off a 25-year fixed-rate mortgage of $150,000 at 7.25% interest if you add an extra $200 to the mortgage payment each month? Steps keystrokes display clear calculator o o 0.00 enter mortgage amoun...
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28 — q ualifier p lus ® iii x finding the mortgage amount approximately how much could you borrow if the interest rate was 7.8% on a 25-year mortgage, and you could afford $1,500 in month- ly payments? What if the interest rate was lowered to 7.5%? Steps keystrokes display clear calculator o o 0.00 ...
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U ser ’ s g uide — 29 finding a quarterly payment find the quarterly payment on a 10-year loan of $15,000 with an annual interest rate of 12%. Steps keystrokes display clear calculator o o 0.00 set to 4 payments/year 4 s ÷ 4.00 enter loan amount 1 5 ) l 15,000.00 enter term in years 1 0 t 10.00 ente...
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30 — q ualifier p lus ® iii x bi-weekly term reduction and payment find the monthly payment on a 25-year, $198,500 loan at 7.85% 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 savings, total payments and the bi-weekly...
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U ser ’ s g uide — 31 finding mortgage amount based on sales price and down payment find both the down payment dollar amount and mortgage amount if the sales price is $175,800 and you're planning to put 10% down. Steps keystrokes display clear calculator o o 0.00 enter sales price 1 7 5 8 0 0 p 175,...
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32 — q ualifier p lus ® iii x setting property tax % rate enter an annual property tax rate of 1.5% steps keystrokes display set tax rate 1 • 5 t 1.50 clear display o o 0.00 recall tax rate ® t 1.50 setting property tax $ enter annual property taxes estimated at $2,500, then clear. Steps keystrokes ...
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U ser ’ s g uide — 33 pith payment (including heating expense and property tax entered as %) find the pith payment on a 25-year, 7.63% mortgage if the home’s selling price is $178,000 and the down payment is 5%. The annual property tax is estimated at 1.3% and the monthly heating cost is estimated a...
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34 — q ualifier p lus ® iii x pith payment (including heating expense and property tax entered as $) find the pith payment on a 25-year, 7.25% mortgage if the home’s selling price is $227,000 and the down payment is 35%. Local annu- al property tax is estimated at $2,270 (or 1% of the sales price). ...
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U ser ’ s g uide — 35 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 mortgage, for an individual payment or individual year, or any range of payments or range of years, for fully o...
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36 — q ualifier p lus ® iii x (cont’d) note: if you have changed your month offset, be sure to return it to 1 (i.E., 1 s ) ) before proceeding to the next problem. 7. (u.S. Mode only) a useful new feature is that your calculator will also display an estimated mortgage interest tax deduction at the e...
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U ser ’ s g uide — 37 amortization list for individual year(s) — using “next” feature how much total interest and principal will you pay on a 25-year, $90,000 mortgage at 8% interest during the first year? The second year? Third year, etc.? First, find monthly payment to “set-up” this mortgage. The ...
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38 — q ualifier p lus ® iii x amortization list for individual year(s) — using month offset the first payment of a mortgage begins in may. How much total interest and principal will you pay on a 25-year, $90,000 mortgage at 8% interest during the first year? The second year? Third year, etc.? (first...
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U ser ’ s g uide — 39 amortization list for individual payment(s) for a $175,000 mortgage at 6.85% interest for 25 years, find out how much interest and how much principal you’ll pay in the first and second payments. Note: use the π key to label the payments. Steps keystrokes display clear calculato...
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40 — q ualifier p lus ® iii x amortization list for a range of payments or years for a $225,000, 25-year mortgage 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 mortgage amount 2...
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U ser ’ s g uide — 41 future value given any four components to a problem that includes a future value, you can calculate the fifth. Appreciation / future value you purchased a home for $210,000 and want to know what it will be worth in 3 years, figuring an inflation or appreciation rate of 6%. (set...
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42 — q ualifier p lus ® iii x 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 key, and 2) when entering or solving for “purchase price” or ...
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U ser ’ s g uide — 43 finding the yield on a discounted note an individual wants to sell you a note under the following terms: 60 months remaining in the term, a face amount when due of $7,500, 10% interest-only payments of $62.50 (incoming). He says he will sell this note to you for $6,500 if you b...
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44 — q ualifier p lus ® iii x buyer pre-qualifying the qualifying keys on your calculator let you instantly pre-qualify prospective buyers. Mortgage lending pros will find these keys use- ful for doing instant mortgage pre-qualifications on the phone or in front of clients. Real estate agents/broker...
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U ser ’ s g uide — 45 (cont’d) • the fourth press will display the higher, “unrestricted” qualify- ing mortgage amount (for comparison purposes); and • the last press will display the allowable monthly debt. Note: you can set your qualifying ratios to display first or last via the preference setting...
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46 — q ualifier p lus ® iii x qualifying examples most of the examples in this section will be based on the default gds:tds income and debt ratios of 32% and 40%, respectively, which are stored in the q key. Recalling gds / tds qualifying ratios recall stored 32%-40% and 35%-42% ratios: steps keystr...
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U ser ’ s g uide — 47 finding qualifying mortgage amount and sales price (simple example excluding property tax) given an interest rate of 7.5%, a term of 25 years, and the stored 32%:40% qualifying ratios, for what size mortgage and what sales price can a buyer pre-qualify for, if he or she makes $...
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48 — q ualifier p lus ® iii x qualifying mortgage amount and sales price (including down payment, property tax and monthly heating/condo fees) the same buyers as in the previous example (who make $45,000 annually and have $200 in long-term monthly debt) wish to buy a lower-priced condo, but can only...
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U ser ’ s g uide — 49 “restricted” qualifying buyers who make $45,000 annually and have $75 in long-term monthly debt wish to buy a home offered at $165,000. They will put 15% down. Will they qualify? For what maximum mortgage amount can they qualify? (use previously stored 7.5% interest and 25-year...
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50 — q ualifier p lus ® iii x (cont’d) “unrestricted” qualifying the amount calculated above is the “restricted” mortgage they may qualify for, based on current income and debt. What are the buyer's actual income and debt ratios? What is the “unrestricted” mortgage amount? What side is the “restrict...
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U ser ’ s g uide — 51 qualifying comparison (comparing 2 different mortgages or qualifying ratios at once) given a buyer's annual income of $45,000, $150 in long-term monthly debt, a 10% down payment, monthly heating expense of $75, an interest rate of 7.25% and term of 25 years, what mortgage amoun...
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52 — q ualifier p lus ® iii x finding income required and allowable monthly debt using the 32%:40% ratios, how much income would a buyer need to finance a $180,000 home, if they put 35% down? What is the maxi- mum allowable debt? What is the dollar down payment and mort- gage amount? What is the mon...
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U ser ’ s g uide — 53 solving for actual qualifying ratios a buyer who makes $60,000 per year and has $350 in long-term monthly debt wants to borrow $100,000 to purchase a home. He has $55,000 down payment and annual property tax is estimated at 1.4%. Monthly housing expenses are estimated at $150. ...
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54 — q ualifier p lus ® iii x finding the monthly loan payment (based on u.S. Interest rate) important note: your calculator must be in u.S. Mode to com- plete the following examples. If it isn’t, press s 9 . Also, when returning to canadian examples, be sure to return to canadian mode by pressing s...
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U ser ’ s g uide — 55 property taxes, property / hazard insurance and monthly housing expense your calculator has keys that store estimated local annual property tax, property insurance and mortgage insurance (if applicable), and monthly estimated housing expense. This allows you to calculate the pi...
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56 — q ualifier p lus ® iii x piti payment (tax and insurance entered as %) find the piti payment on a 30-year, 8.4% loan if the home’s selling price is $125,000 and the down payment is 5%. Annual property taxes are estimated at 1.3%, annual property insurance at 0.25% and annual mortgage insurance ...
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U ser ’ s g uide — 57 calculating tax and insurance % or $ if loan variables are entered in addition to tax and insurance per- centage rates or dollar values, the respective tax/insurance dollar values or percentage rates can be viewed by simply pressing the applicable keys a second time. For exampl...
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58 — q ualifier p lus ® iii x finding the interest rate find the interest rate if the mortgage is $98,500, term is 30 years and payment is $1,150 a month. Steps keystrokes display clear calculator o o 0.00 enter loan amount 9 8 5 0 0 l 98,500.00 enter term in years 3 0 t 30.00 enter monthly p&i paym...
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U ser ’ s g uide — 59 finding sales price and payment based on loan amount and down payment find a home’s sales price if you've been approved for a $200,000, 30-year, 7.5% mortgage and you plan to put 20% down. Also find your monthly payment. Steps keystrokes display clear calculator o o 0.00 enter ...
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60 — 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 1% at the end of each year. Then, find t...
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U ser ’ s g uide — 61 arm payment — using lifetime cap 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 keystrokes display clear calculator o o 0.00 enter loan amount 1 7 6 ) l 1...
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62 — q ualifier p lus ® iii x increasing and decreasing arm payment find the arm payments for a $300,000, 30-year arm loan that starts out at 5% but increases 1% after six months and then decreases 1.5% after an additional 12 months. Steps keystrokes display clear calculator o o 0.00 enter loan amou...
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U ser ’ s g uide — 63 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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64 — q ualifier p lus ® iii x apr, total finance charges (including mortgage insurance) you are financing a mortgage of $275,000 for 30 years at a nominal or quoted rate of 6.25% interest. The cost of getting the loan is quot- ed as 1.5 points plus $550 in fees. What is the apr (including mortgage i...
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U ser ’ s g uide — 65 bi-weekly loans your calculator includes a built-in 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...
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66 — q ualifier p lus ® iii x estimated income tax savings and “after-tax” payment important note: this example estimates the annual tax savings (including property tax and mortgage interest). It is important to inform your clients to consult a tax advisor for an accurate income tax deduction calcul...
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U ser ’ s g uide — 67 mortgage interest tax deduction — 28% or 30% tax bracket what is the mortgage interest tax deduction for the first year (if loan starts in january*) on a $310,000, 30-year loan at 7.25% interest? Base it on 28% tax bracket (default). Then, recalculate based on a 30% tax bracket...
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68 — 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 — 69 qualifying loan amount and sales price (complete example including down payment, tax / insurance, monthly association dues) buyers who make $75,000 annually and have $500 in long-term monthly debt wish to buy a home but can only afford $5,000 down. If you include estimated annu...
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70 — q ualifier p lus ® iii x “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...
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U ser ’ s g uide — 71 (cont’d) “unrestricted” qualifying the amount calculated on the previous page is the loan they may qualify for, based on current income and debt. What are the buyer's actual income and debt ratios? What does the “unrestricted” loan amount calculate to, and which side is it base...
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72 — q ualifier p lus ® iii x finding income required and allowable monthly debt using the 28%:36% ratios, how much income would a buyer need to finance a $250,000 home, if they put 20% down? What is the maxi- mum allowable debt? What is the dollar down payment and loan amount? What is the monthly p...
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U ser ’ s g uide — 73 qualifying comparison (comparing 2 different loans or qualifying ratios at once) given a buyer's annual income of $45,000, $500 in long-term monthly debt, estimated monthly homeowner’s association dues of $50, an interest rate of 7.25% and term of 30 years, what loan amounts ca...
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74 — q ualifier p lus ® iii x default settings performing a total reset (see below) will return the calculator to the following default settings: • canadian interest mode • two fixed decimal places • 12 periods per year = reset to 12 upon o • property tax/ins. = values cleared upon o • mortgage ins....
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U ser ’ s g uide — 75 error codes with an incorrect entry or answer beyond the range of the calculator, the display will show one of the following error messages. To clear an error, simply press any key. Oflo — number too large to display div error — attempted to divide by zero tvm error — time-valu...
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76 — q ualifier p lus ® iii x repair and return warranty, repair and return information! Return guidelines: 1. Please read the warranty in this user’s guide to determine if your calculated industries calculator, measuring device or elec- tronic tool remains under warranty before calling or returning...
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U ser ’ s g uide — 77 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 a...
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78 — q ualifier p lus ® iii x 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, mat...
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U ser ’ s g uide — 79 accumulative memory µ , 17 adjustable rate mortgages (u.S.), 59 amortization and remaining balance, 35 amortization list for a range of payments or years, 40 amortization list for individual payment(s), 39 amortization list for individual year(s)—using, 37 amortization list for...
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80 — q ualifier p lus ® iii x non-monthly loans, 28 paying off a mortgage early, 27 payment – p&i, 26 payment – pith, 32, 33, 34 payment – piti, 56 payment – interest-only, 27, 34 percent change, 22 percentage calculations, 22 pith payment, 32, 33, 34 piti payment (u.S.), 56 preference settings, 17 ...
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U ser ’ s g uide — 81 3420ug-e-a 7/2/04 9:06 am page 81.
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82 — q ualifier p lus ® iii x 4840 hytech drive carson city, nv 89706 u.S.A. 1-800-854-8075 fax: 1-775-885-4949 e-mail: info@calculated.Com www.Calculated.Com 3420ug-e-a 7/04 3420ug-e-a 7/2/04 9:06 am page 82.
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Designed in the united states of america printed in china 3420ug-e-a 7/04 3420 ug cvr 7/6/04 1:57 pm page 2.