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- 3423
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Calculated Industries 3423 User Manual
Summary of 3423
Page 1
Q ualifier p lus ® 4 x advanced real estate finance calculator with cash flow and built-in canadian interest mode model 3423 c anadian.
Page 2: Introducing The C
The canadian qualifier plus 4x 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 buttons, it will instantl...
Page 3: Examples —
Getting started..........................................................................1 key definitions .........................................................................1 basic operation keys ..................................................................1 mortgage/time-value-of-money ...
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Total payment (including heating expense and property tax entered as percentage)..........................................................28 total payment (including heating expense and property tax entered as dollar amount) .....................................................28 finding mortgage am...
Page 5: Examples —
Cash flow examples .........................................................51 calculating irr, npv, and nfv for annual cash flows ...........53 calculating irr, npv, and nfv for monthly cash flows .........54 recalling and replacing cash flows ........................................55 recalling an...
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U ser ’ s g uide — 1 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 entries. Not...
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2 — q ualifier p lus ® 4 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, payments per y...
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U ser ’ s g uide — 3 p p&i and total payment — multi-function payment key. Enters or solves for the periodic principal and interest (p&i) payment. In canadian mode, a sec- ond press of the p key calculates the total payment (includes monthly property tax, insurance, heating expense, and other applic...
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4 — q ualifier p lus ® 4 x s d loan-to-value (ltv) — calculates the loan-to- value percent when a down payment and sales price, mortgage amount/down payment, or mortgage amount/sales price are entered. Also cal- culates the above dollar values if an ltv percent and one of the above values are entere...
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U ser ’ s g uide — 5 s ) month offset — used to set the first month of pay- ment if other than january (e.G., month 3). S : odd-days interest (odi) — calculates the pre-paid interest, or simple interest accumulated (based on a 360-day year) during the days before the first mort- gage payment is made...
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6 — q ualifier p lus ® 4 x (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 permanently stored as follows: 3 2 : 4 0 q . Default income and debt ratio...
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U ser ’ s g uide — 7 3) calculates the annual income required and allowable monthly debt for a desired mortgage amount or sales price based on the stored income and debt qualifying ratios and the entered: • term • interest • price (down payment) or mortgage amount 4) also finds buyer's actual income...
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8 — q ualifier p lus ® 4 x 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 conver...
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U ser ’ s g uide — 9 (cont’d) press display or calculation 1 irr%* 2 net present value (npv)** 3 net future value (nfv) 4 desired interest rate (entered prior to calculating)*** *irr: the rate of return at which the discounted future cash flows equal the initial cash outlay (c-0). An irr greater tha...
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10 — q ualifier p lus ® 4 x 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 follo...
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U ser ’ s g uide — 11 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 the s and...
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12 — q ualifier p lus ® 4 x 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 ...
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U ser ’ s g uide — 13 (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 . - hold...
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14 — q ualifier p lus ® 4 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 di...
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U ser ’ s g uide — 15 memory storage keys (m0-m5) in addition to the standard cumulative memory (as described on previous page), your calculator has six independent storage registers — [m0] through [m5] — that can be used to permanently store single, non-cumulative values. These values will be held ...
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16 — q ualifier p lus ® 4 x 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 sto...
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U ser ’ s g uide — 17 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 ÷ 2 = 1...
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18 — q ualifier p lus ® 4 x figuring straight percent 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 ...
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U ser ’ s g uide — 19 delta percent - rate of appreciation a home originally purchased for $150,000 sold a year later for $185,000. What is the rate of appreciation? Keystrokes display 1 5 0 ) s % 150,000.00 1 8 5 ) = 23.33 using the feet and meters conversions using the w and w keys, you can quickl...
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20 — q ualifier p lus ® 4 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 numeric...
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U ser ’ s g uide — 21 mortgage / time-value-of-money (tvm) 1. The financial functions — loan 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 for th...
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22 — q ualifier p lus ® 4 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 11. Just be sure to change the term from 25 to 30 years, where applicable, and of course, the answers will change due to u....
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U ser ’ s g uide — 23 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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24 — q ualifier p lus ® 4 x non-monthly mortgages most mortgages are paid off monthly. However, if you have a non- monthly mortgage, 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 payments per year. Steps keystro...
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U ser ’ s g uide — 25 bi-weekly mortgages your calculator includes a built-in bi-weekly mortgage function ( s t ), which allows you to convert established, fully amortized monthly mortgages into bi-weeklies (in which one-half the monthly payment is made every two weeks). Because you make two extra h...
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26 — q ualifier p lus ® 4 x sales price / down payment one of the unique features of this calculator is its ability to work with not only mortgage 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 mortgage amount). Y...
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U ser ’ s g uide — 27 finding loan-to-value (ltv) based on down payment and sales price find the loan-to-value if a buyer is putting $15,000 down on a $197,000 home. Then find the mortgage amount. Steps keystrokes display clear calculator o o 0.00 enter sales price 1 9 7 ) p 197,000.00 enter down pa...
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28 — q ualifier p lus ® 4 x total payment (including heating expense and property tax – entered as percentage) find the total (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 h...
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U ser ’ s g uide — 29 finding mortgage amount (including canadian mortgage insurance) find the mortgage amount (including canadian mortgage insurance) on a 25-year mortgage at 7.8% interest if you are considering a mortgage with a monthly p&i payment of $1,500. Canadian mortgage insurance of 2.75% w...
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30 — q ualifier p lus ® 4 x finding monthly mortgage (p&i) payment (including canadian mortgage insurance) find the monthly p&i payment (including canadian mortgage insurance) on a 25-year mortgage, 300,000 mortgage at 7.8% inter- est. Canadian mortgage insurance of $5,250 will be added to the mortg...
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U ser ’ s g uide — 31 (cont’d) 2. You can also find remaining balance using the s a key by specifying a year or range of years, period or range of periods. For example, to find the remaining balance after the 10th year, press 1 0 s a ; to find the remaining balance after the 10th period, press 1 0 s...
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32 — q ualifier p lus ® 4 x total principal and interest for a 25-year mortgage how much total interest will you pay on a $200,000 mortgage at 7.5% interest over 25 years? What is the total principal and interest paid? Steps keystrokes display clear calculator o o 0.00 enter mortgage amount 2 0 0 ) ...
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U ser ’ s g uide — 33 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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34 — q ualifier p lus ® 4 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 f...
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U ser ’ s g uide — 35 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 per function ( s b ) keys to specify payments. Steps keystrokes displ...
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36 — q ualifier p lus ® 4 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 2...
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U ser ’ s g uide — 37 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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38 — q ualifier p lus ® 4 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. 2) when entering or solving for “purchase price” or “prese...
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U ser ’ s g uide — 39 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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40 — q ualifier p lus ® 4 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/brokers ...
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U ser ’ s g uide — 41 (cont’d) • the last press will display the allowable monthly debt. Note: you can set your qualifying ratios to display first or last via the preference settings. See page 12. 5. When calculating annual income required (based on entered mortgage amount or sales price, term, inte...
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42 — q ualifier p lus ® 4 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 keystrok...
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U ser ’ s g uide — 43 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, what size mortgage and what sales price can a buyer pre-qualify for, if he or she makes $45,0...
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44 — q ualifier p lus ® 4 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 a...
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U ser ’ s g uide — 45 qualifying mortgage amount and sales price (including canadian mortgage insurance) buyers who make $45,000 annually and have $200 in long-term monthly debt can put 15% down on a home. How much will they qualify for? What is the monthly payment (including the canadian mortgage i...
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46 — q ualifier p lus ® 4 x “restricted” qualifying buyers who make $45,000 annually and have $600 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 ...
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U ser ’ s g uide — 47 “unrestricted” qualifying the amount calculated in the previous example 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 “restric...
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48 — q ualifier p lus ® 4 x qualifying comparison (comparing 2 different mortgages or two 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 mort...
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U ser ’ s g uide — 49 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 maximum allowable debt? What is the dollar down payment and mortgage amount? What is the monthly payment...
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50 — q ualifier p lus ® 4 x 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 $25,000 down payment and annual property tax is estimated at 1.4%. Monthly housing expenses are estimated at ...
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U ser ’ s g uide — 51 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 c key can store up to 20 sequential, semi-permanent cash flows, including an initial investment, along with their corresponding fr...
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52 — q ualifier p lus ® 4 x 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 ...
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U ser ’ s g uide — 53 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 n...
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54 — q ualifier p lus ® 4 x 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...
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U ser ’ s g uide — 55 (cont’d) recalling and replacing cash flows steps keystrokes display 1) recall all cash flows and frequencies: initial cash flow ® c c-0 -225,000.00 1st cash flow c c-1 1,000.00 1st cash flow frequency c f-1 12.00 2nd cash flow c c-2 1,100.00 2nd cash flow frequency c f-2 12.00...
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56 — q ualifier p lus ® 4 x finding the monthly mortgage 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 + . Also, when returning to canadian examples, be sure to return to canadian mode by pressing...
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U ser ’ s g uide — 57 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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58 — q ualifier p lus ® 4 x piti payment (tax and insurance entered as percentage) 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 ins...
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U ser ’ s g uide — 59 calculating tax and insurance percent or dollar amount if loan variables are entered in addition to tax and insurance percent rates or dollar values, the respective tax/insurance dollar values or percent rates can be viewed by simply pressing the applicable keys a second time. ...
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60 — q ualifier p lus ® 4 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 paymen...
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U ser ’ s g uide — 61 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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62 — q ualifier p lus ® 4 x 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 ca...
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U ser ’ s g uide — 63 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 insurance...
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64 — q ualifier p lus ® 4 x bi-weekly mortgages your calculator includes a built-in bi-weekly mortgage function ( s t ), which allows you to convert established, fully amortized monthly mortgages into bi-weeklies (in which one-half the monthly payment is made every two weeks). Because you make two e...
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U ser ’ s g uide — 65 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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66 — q ualifier p lus ® 4 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 — 67 (cont’d) *the maximum qualifying loan amount displayed is the “restricted” loan amount that the buyer may qualify for. This loan amount is based on whichever of the two ratios, income or debt, limits the buyer the most. If the buyer’s maximum qualifying loan amount is restricte...
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68 — q ualifier p lus ® 4 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 pay...
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U ser ’ s g uide — 69 qualifying comparison (comparing two different loans or two 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 amou...
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70 — q ualifier p lus ® 4 x default settings performing a total reset (see below) will return the calculator to the following default settings: • canadian interest mode • 12 periods per year = reset to 12 upon o • property tax/ins. = values cleared upon o • mortgage ins. = values cleared upon o o • ...
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U ser ’ s g uide — 71 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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72 — q ualifier p lus ® 4 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 product remains under warranty before call- ing or returning any device for evaluation or repairs. 2. ...
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U ser ’ s g uide — 73 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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74 — q ualifier p lus ® 4 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, mathe...
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U ser ’ s g uide — 75 accumulative memory µ , 14 amortization and remaining balance, 30 amortization list for a range of payments or years, 36 amortization list for individual payment(s), 35 amortization list for individual year(s)—using “next” feature, 33 amortization list for individual year(s)—us...
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76 — q ualifier p lus ® 4 x payment – including heating expense, 27 payment – including heating expense and property tax, 28 payment – piti (u.S.), 58 percent change, 17 percentage calculations, 17 pith payment, 27, 28 piti payment (u.S.), 58 preference settings, 12 property taxes, property/hazard i...
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4840 hytech drive carson city, nv 89706 u.S.A. 1-800-854-8075 or 1-775-885-4900 fax: 1-775-885-4949 e-mail: info@calculated.Com www.Calculated.Com designed in the united states of america printed in china 5/06 ug3423e-b.