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Qualifier Plus IIIx
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USER’SGUIDE — 1
The was custom-designed for mortgage lenders andQ PU A L I F I E R L U S I I I X
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-
to-use real estate finance calculator on the market!
Features:
• Easy and Complete Buyer Qualifying
• Find Qualifying Loan Amount, Income Required and
Maximum Allowable Debt
• Use 2 Qualifying Ratios at Once to Compare Different Loans
(e.g., conventional vs. FHA/VA loans)
• Find the Restricted and Unrestricted Qualifying Loan Amount
• TInstant P&I, PITI and otal Payment
• Interest-Only Payment
• TExpanded ax and Insurance Capabilities
• Built-in Sales Price and Down Payment
• Works in Annual Term and Interest
• Flexible, “what if” Loan or TVM Calculations — Finds Loan
Amount, Term, Interest or Payment
• Future Value and Appreciation
• Complete Amortization
• Remaining Balances/Balloon Payments
• Adjustable Rate Mortgages (ARMs)
• TAPR and otal Finance Charges
• Bi-Weekly Loans
• Trust Deeds (investments)
• Date Math
• Also Works as a Standard Math Calculator
New!
• T1st and 2nd rust Deeds (80:10:10/80:15:5),
or Combo Loans
• APR, including Mortgage Insurance
• TIncome ax Savings, Mortgage Interest Deduction
• Interest-Only Payments
• Loan-to-Value (LTV)
• Odd-Days Interest (ODI) and Month Offset
• Rent vs. Buy
Introducing the Q PUALIFIER LUS
®
IIIX
Mortgage Loan Calculator
2 — QUALIFIER PLUS ®IIIX
GETTING STARTED 5..........................................................................
KEY DEFINITIONS .........................................................................5
Basic Operation Keys ..................................................................5
Mortgage Loan (TVM) Keys.........................................................6
Tax Savings Keys.........................................................................9
Rent vs. Buy Keys .....................................................................10
Qualifying Keys ..........................................................................10
Tax, Insurance and Expense Keys ............................................13
1st and 2nd T ..........................14rust Deeds (Combo Loan) Keys
BASIC ARITHMETIC EXAMPLES ...............................................16
Arithmetic ...................................................................................16
Percentage Calculations ............................................................16
Figuring Straight % Commission ...............................................16
Reduction in Listing Price (Discount %) ....................................17
Simple, One-Year Home Appreciation (Add-on %)....................17
Date Examples...........................................................................18
CALCULATOR SETTINGS...........................................................19
Decimal Place Selection ............................................................19
Preference Settings ...................................................................20
MEMORY ......................................................................................22
Accumulative Memory................................................................22
Memory Storage Keys (M0-M6).................................................23
EXAMPLES......................................................................................25
MORTGAGE LOANS/TIME-VALUE-OF-MONEY (TVM)..............25
Finding the Monthly Mortgage (P&I) Payment...........................26
Finding the Interest Rate ...........................................................26
Finding the Term of a Loan........................................................26
Finding the Loan Amount...........................................................27
Paying Off a Mortgage Early (Making Larger Payments)..........27
Simple Interest vs. Compound Interest......................................28
Future Value...............................................................................28
Appreciation ...............................................................................28
Non-Monthly Loans ....................................................................29
Finding a Quarterly Payment .....................................................29
Sales Price/Down Payment .......................................................30
Finding Loan Amount Based on Sales Price and Down
Payment..................................................................................30
Taxes and Insurance..................................................................31
Setting Tax and Insurance % Rates...........................................32
TABLE OF CONTENTS
USER’SGUIDE — 3
Recalling Tax and Insurance % Rates.......................................32
Setting Tax and Insurance $ ......................................................32
Calculating Tax and Insurance % or $.......................................33
PITI Payment (Tax and Insurance Entered as %) .....................34
Total Payment (Including Expenses) and Interest-Only
Payment..................................................................................34
Estimated Income Tax Savings and “After-Tax” Payment .........35
Rent vs. Buy...............................................................................36
Adjustable Rate Mortgages........................................................37
ARM Payment — Worst-Case Scenario ....................................38
ARM Payment — Using Lifetime Cap .......................................39
Decreasing ARM Payment.........................................................40
Increasing and Decreasing ARM Payment ................................40
Amortization and Remaining Balance........................................41
Notes on Amortization................................................................41
Total Principal and Interest for a 30-Year Loan .........................42
Amortization List for Individual Year(s) —
Using “Next” Feature ..............................................................43
Amortization List for Individual Year(s) —
Using Month Offset .................................................................44
Amortization List for Individual Payment(s) ...............................45
Amortization List for a Range of Payments or Years.................46
APR and Total Finance Charges ...............................................47
Finding APR, Total Finance Charges
(Excluding Mortgage Insurance).............................................47
Prepaid/Odd-Days Interest and APR.........................................48
Balloon Payment/Remaining Balance Needed to Pay Off
a Loan.....................................................................................49
Bi-Weekly Loans ........................................................................49
Bi-Weekly Term Reduction and Payment ..................................50
Trust Deeds and Discounted Notes...........................................50
Purchase Price of a Note — Fully Amortized ............................51
Finding the Y ....................................51ield on a Discounted Note
Finding the Value and Discount of a Trust Deed .......................52
BUYER QUALIFYING 53...................................................................
QUALIFYING EXAMPLES............................................................54
Recalling Income/Debt Qualifying Ratios ..................................54
Storing New Income/Debt Qualifying Ratios..............................54
Finding Qualifying Loan Amount and Sales Price (Simple
Example Excluding Tax/Insurance).........................................55
Qualifying Loan Amount and Sales Price (Complete Example
Including Down Payment, Tax/Insurance, Monthly Association
Dues) ......................................................................................56
“Restricted” Qualifying ...............................................................57
4 — QUALIFIER PLUS ®IIIX
“Unrestricted” Qualifying ............................................................57
Qualifying Comparison (Comparing 2 Different Loans or Ratios
at Once) ..................................................................................58
Finding Income Required and Allowable Monthly Debt .............59
Solving for Actual Qualifying Ratios...........................................60
1ST AND 2ND TRUST DEEDS (COMBO LOANS)......................61
Combo Loan (80:10:10) vs. Fixed-Rate Loan with Mortgage
Insurance ................................................................................62
Combo Loan (80:15:5) vs. Fixed-Rate Loan with Mortgage
Insurance ................................................................................64
Combo Loan — Entering a New LTV ........................................66
APPENDIX .......................................................................................68
Default Settings..........................................................................68
Reset..........................................................................................68
Error Codes................................................................................68
Auto Shut-Off .............................................................................69
Batteries .....................................................................................69
Repair and Return......................................................................69
Warranty.....................................................................................70
Legal Notes ................................................................................71
Looking For New Ideas ..............................................................71
INDEX 72.............................................................................................
USER’SGUIDE — 5
KEY DEFINITIONS
Basic Operation Keys
OTurns all power off. The memory and most financial
registers are cleared.
oIf 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, Payment, Price, Down Payment, Income,
Debt, Expense, and Mortgage Insurance/MI (unless MI is set to
hold; see Preference Settings).
+ – x Arithmetic operation keys.
÷ =
0 9-Digits used for keying in numbers.
)Triple-zero key (saves time when entering 000 values).
bBackspace key (deletes incorrect entries one digit at
a time).
•Decimal point.
%Percent — Four-function (+, –, x, ÷) percent key.
See page 16 for examples.
µMemory — Adds the displayed number to the
cumulative memory. Pressing s µ (M-) will
subtract the displayed value from memory. Pressing
® µ recalls and displays the memory contents.
Pressing ® ® clears the memory. See page 22
for details.
®Recall — Recalls and displays the stored values in
most keys/functions, such as the TVM keys, pay-
ments per year, etc. (e.g., ® ˆ). Also used for
Memory functions.
sWorks 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 section
on Decimal Place Selection,page 19).
GETTING STARTED
USER’SGUIDE — 7
ˆInterest — 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.
PSales Price — Enters or calculates Sales Price
based on the entries of Loan Amount (or equivalent
mortgage components) and Down Payment.
dDown Payment — Enters (in either percent or dol-
lars) or calculates Down Payment, based on the
entries of Loan Amount (or equivalent mortgage
components) and Sales Price. A second press
changes the entered down payment from a dollar
figure to a percent, or vice versa.
Note: Any number under 100 is assumed to be a percent down
payment. You do not have to label the value as a percent.
s d Loan-to-Value (LTV) — Calculates the loan-to-value
percent when a Down Payment and Sales Price,
Loan Amount and Down Payment, or Loan Amount
and Sales Price are entered. Also calculates the
above dollar values if an LTV percent and one of the
above values are entered (e.g., entered Sales Price
and LTV% will calculate Down Payment and Loan
Amount).
s ˆ Annual Percentage Rate (APR) — Calculates APR
(for fixed-rate loans only) based on the entry of
points and/or non-recurring loan fees paid at initia-
tion. It also calculates total finance charges, monthly
mortgage insurance, and PIMI payment, based on
the entry of mortgage insurance via the s I k e y s .
s b Periodic — Used to specify a mortgage component
( Term or Interest), Income, or A m o r t i z a t i o n / R e m a i n i n g
Balance value as per period rather than per year.
For example, 3 6 0 s b T enters 360
periods, or months.
8 — QUALIFIER PLUS®IIIX
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).
aAmortization (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
1 Displays range of periods
2 Calculates total interest for period range
3 Displays total principal for range
4 Calculates total principal and interest
5 Calculates remaining balance
6 Calculates remaining term
7 Calculates estimated mortgage interest tax
deduction for the specified period, based on
the default tax bracket of 28%*
*You may enter any tax bracket (e.g., 30%, press 30
s + and recalculate amortization values).
Note -: This is only for estimating a mortgage interest tax deduc
tion — it does not include property tax. See “Tax Savings” keys
for income tax savings including property tax and mortgage inter-
est on page 9.
s a Remaining Balance (Bal) — Displays the remain-
ing balance when preceded by a single year or
range of years (or individual payment or range of
payments by using the s b keys). Note that
you can also view the remaining balance as part of
the Amortization display (see above a d e s c r i p t i o n ) .
:Colon Separator (Date) — Used as a separator for
entering dates, ARM adjustments, qualifying ratios,
Combo Loan (1st/2nd) interest and terms, and for
entering amortization ranges.
s ) Month Offset (Mo Offset) — Used to set the first
month of payment if other than January.
s : Odd-Days Interest — Calculates the prepaid inter-
est, or simple interest accumulated (based on a
360-day year) during the days before the first loan
payment is made using the interest rate stored in
the Interest register.
USER ’SGUIDE — 9
AAdjustable 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). For example, an
ARM which increases 1% every six months is entered
1 : • 5 A; an ARM which decreases 1% every
six months is entered 1 : • 5 s A. (ARM
rates are stored permanently.)
s % Lifetime Interest Cap (ARMs) — Sets the lifetime
interest cap for ARMs by entering the maximum
interest increase. This is a permanent setting. To
clear, set the cap back to zero (0 s %).
s T Bi-Weekly (Bi-Wkly) — Converts a regular monthly
loan to a Bi-Weekly loan, where the buyer may real-
ize significant interest savings. After loan variables
are entered, pressing s T displays the reduc-
tion in term. The second press of Tshows the
total interest savings; third press displays the total
interest paid; fourth press displays the total principal;
and fifth press displays the total principal and inter-
est paid. Pressing pwill calculate the bi-weekly
payment. Pressing s T again will return and
re-calculate to the original term, or pressing o
twice will exit Bi-Weekly Mode.
Tax Savings Keys
s p Estimated Tax Savings (Tax Svgs) — Calculates
an estimated annual income tax savings for a mort-
gage, 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 estimated annual income tax savings;
the third consecutive press of pwill display the
monthly tax savings; and the fourth press will display
the estimated “after-tax”, or net mortgage payment.
Note -: This function is different from the mortgage interest deduc
tion figured in the Amortization calculation, as it also includes
property tax for a total estimated tax savings and only provides
an annual estimate, not an estimate for a specified range. (See
the a key definition for details).
10 — QUALIFIER PLUS®IIIX
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 P. Consecutive presses of will calculate the
comparable sales price, loan amount, monthly loan
payment (including tax/insurance, if entered), and
estimated annual/monthly income tax savings.
s + Tax Bracket (Tax Brkt%) — Enters a buyer’s tax
bracket for figuring Rent vs. Buy calculations or for
calculating an estimated mortgage interest tax
deduction in the Amortization calculation. Press ®
+ to display stored percentage. (Default = 28%)
Qualifying Keys
q(Qualify Based on 28%-36%) — A multi-function
key which, based on entered variables, performs the
following pre-qualifying functions:
1) Stores income and debt ratios for loan quali-
fying. Ratios are entered using the Colon :key
(Income Ratio : Debt Ratio). For example, income
and debt ratios of 28% and 36%, respectively, are
entered and permanently stored as follows: 2 8 :
3 6 q. Default income and debt ratios for this
key are 28% and 36%, respectively. You may
change qualifying ratios, if desired.
What are Qualifying Ratios?
The income ratio calculates the allowable percent-
age of income for the total housing payment, while
the debt ratio finds the allowable percentage of
income for the total housing payment, plus long-term
debts (usually 12 months or longer). The conserva-
tive rule is that total housing expenses should b e
28% or less of income, while total housing expense
plus monthly debt should be 36% or less of income.
(Cont’d)
USER’SGUIDE — 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 (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.
2) Calculates the maximum loan amount for
which a buyer may qualify, based on the stored
income and debt qualifying ratios and the entered:
• Term
• Interest
• Annual Income
• Monthly Debt
—and optional—
• TAnnual Property ax and Insurance
• Annual Mortgage Insurance (Private Mortgage
Insurance or PMI)
• -other monthly housing expenses (e.g., home
owner’s association dues)
The output of this key is as follows:
Press Calculation
1 Displays stored Qualifying Ratios (e.g.,
28%-36%)
2 Restricted/Maximum Qualifying Loan
Amount *
3 Buyer’s Actual Ratios (Income%:Debt%)
4 Unrestricted Qualifying Loan Amount *
5 Maximum Allowable Debt
(Cont’d)
12 — QUALIFIER PLUS®IIIX
(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 higher, is the loan amount. This loan amount is based
on whichever of the two ratios — income or debt — limits the
buyer the least. 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 (i.e.,
income or debt).
This restricted/unrestricted qualifying loan 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 loan amount
or sales price based on the stored income and debt
qualifying ratios and the entered:
• Term
• Interest
• Price (down payment) or Loan Amount
4) Also finds buyer's actual income and debt
ratios given both buyer and property data. By
default, the first press of qdisplays the stored
qualifying ratios and the second press calculates the
buyer's actual ratios.
Q(Qualify Based on 29%-41%) — Stores additional
Income and Debt ratios (e.g., FHA/VA) and operates
identically to the qkey. Default Income and Debt
ratios for this key are 29% and 41%, respectively.
Note: You can store whatever ratios you desire in the q or
Q keys.
iIncome — Enters the buyer’s annual income for
loan qualifying. Enters a monthly income when pre-
ceded by the s b (periodic) keys (e.g., 5 0
0 0 s b i).
DEnters buyer’s long-term, monthly debt (e.g., car
payments, credit cards with large balances/long-
term monthly payments).
USER’SGUIDE — 13
Tax, eysInsurance and Expense K
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):
tProperty Tax — Used for calculating PITI and Total
payment, and Qualifying. Stores estimated annual
property tax in either percent or dollar amount. If
entered as an annual dollar amount, a press of ®
and tconverts to the monthly tax amount, and
pressing tagain converts to the annual percent-
age rate. If entered as a percentage, pressing ®
t converts to the annual dollar amount, and
pressing tonce more shows the monthly tax.
Note: Entering a number equal to or less than 10 is assumed to
be an annual percentage. Property tax is calculated from the
sales price (therefore, you should also enter a Down Payment).
IProperty Insurance — Used for calculating PITI
and Total payment, and Qualifying. Stores estimated
annual property (or homeowner’s) insurance in
either percent or dollar amount. If entered as an
annual dollar amount, a press of ®and I con-
verts to the monthly insurance amount or premium,
and pressing I again converts to the annual per-
centage rate. If entered as a percentage, pressing
® I converts to the annual dollar amount, and
pressing I once more shows the monthly insurance.
Note: Entering a number equal to or less than 10 is assumed to
be an annual percentage. Property insurance is calculated from
the sales price (therefore, you should also enter a Down Payment).
s I Mortgage Insurance (Mtg Ins) — Used for calculat-
ing PITI and Total payment, and Qualifying. Stores
estimated annual mortgage insurance (or Private
Mortgage Insurance) in either percent or dollar
amount. If entered as an annual dollar amount, a
press of ® and s I converts to the monthly
mortgage insurance amount or premium, and press-
ing Iagain converts to the annual percentage
rate. If entered as a percentage, pressing ® s
I converts to the annual dollar amount, and press-
ing Ionce more shows the monthly insurance.
14 — QUALIFIER PLUS®IIIX
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
entered as a percentage of sales price or loan amount, these
items will automatically be re-calculated if sales price or loan
amount is changed.
eExpense — For Total Payment and Qualifying.
Enters monthly housing expense (e.g., homeowner’s
association dues, maintenance and utilities).
1st and 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 (PMI), is required.
This routine requires a fixed-rate loan to be entered using the stan-
dard l p ˆ , , and/or Tkeys so that a loan comparison can
be made.
*Loan-to-Value Combo Loan for 80:10:10 — This
key provides a loan comparison (see below key out-
puts*) of an 80:10:10 combo fixed-rate loan versus a
single, fixed-rate loan requiring mortgage insurance.
The stored values are a percentage of the sales
price (e.g., 80:10 identifies that 80% of the price is
covered by the 1st TD, 10% of the price is covered
by the 2nd TD and the remaining 10% is covered by
the down payment).
s * Loan-to-Value Combo Loan for 80:15:5 —The
second function of this key provides a loan com-
parison (see below*) of an 80:15:5 combo fixed-rate
loan versus a single fixed-rate loan requiring mort-
gage insurance. The stored values are a percentage
of the sales price (e.g., 80:15 identifies that 80% of
the price is covered by the 1st TD, 15% of the price
is covered by the 2nd TD and the remaining 5% is
covered by the down payment).
Note: You may also enter any LTV for either *or s *
(80:15:5) Combo Loans keys. For example, to enter a 90:5 LTV,
enter 9 0 : 5 * or 9 0 : 5 s * and continue to
press the * key to find the below values.
USER’SGUIDE — 15
* e* and s * (80:15:5) K y 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 Combined (Blended)
Interest Rate
2 Equivalent Interest Rate of Fixed Rate
Mortgage with Mortgage Insurance
3 Combo Loan Combined (1st/2nd TD)
Payment
4 Equivalent Payment of Fixed Rate Mortgage
with Mortgage Insurance
5 Monthly Savings over Fixed-Rate Loan with
Mortgage Insurance
6 TAdjusted 2nd erm (if Savings Applied to
2nd TD)
7 T1st rust Deed Loan Amount
8 T2nd rust Deed Loan Amount
9 T1st rust Deed Payment
10 T2nd rust Deed Payment
11 Displays LTV
!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). Both interest and term values are required for
a valid entry. Values will be retained until changed or
reset.
s ! 2nd TD Interest:Term — Stores the annual interest
and term for the 2nd fixed-rate TD. Entry is made
using the :key (Interest : Term). Both interest
and term values are required for a valid entry. Va l u e s
will be retained until changed or reset.
16 — QUALIFIER PLUS ®IIIX
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 = 1.50
Percentage Calculations
The Percent %key can be used for finding a given percent of a
number or for working add-on, discount, or division percentage
calculations.
A. 8 0 0 x % =2 5 200.00
B. 2 5 0 + % =1 0 275.00
C. 2 5 5 0– % = 12.50
D. 2 0 0 ÷ % =5 0 400.00
The Percent %function is a key that has special applications for real
estate professionals — especially when figuring a commission
amount.
Figuring Straight % Commission
The commission for the listing office is 3%. If the property sells for
$259,650, what is the listing office’s commission?
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter sales price 2 5 9 6 5 0 259,650.
Multiply by commission % x 3 % = 7,789.50
— DO NOT CLEAR CALCULATOR —
What if the listing agent works on a 50/50 split with his or her bro-
ker? What is the listing agent’s share of this commission?
STEPS DISPLAYKEYSTROKES
Multiply by 50 percent x 5 0 % = 3,894.75
USER’SGUIDE — 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 dollars and the new, lowered listing
price.
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter sales price 1 7 5 5 0 0 175,500.
Subtract 5% – 5 % 8,775.00
Find new listing price =166,725.00
Simple, One-Year Home Appreciation (Add-on %)
Properties in your area have been going up in value about 6% per
year. If you purchase a $275,000 home today, what will it be worth in
one year, assuming the same rate of appreciation continues?
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter current value 2 7 5 ) 275,000.
Add 6% + 6 % 16,500.00
Find appreciated value =291,500.00
Note: See page 28 for another example of future value or appreciation.
18 — QUALIFIER PLUS ®IIIX
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 Year.
The date function lets you: 1) add a number of days to a date to find
a second date (in the future), 2) subtract a number of days from a
date to find a second date (in the past), and, 3) subtract one date
from another date to find the number of days in between. For exam-
ple, if a 45-day escrow begins April 26, 2004, what is the closing
date and day?
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter month 4 : 4-
Enter day 2 6 : 4-26-
Enter year 0 4 4-26-04
Add 45 days + 4 5 = THU 06-10-04
Find the number of days to calculate prepaid interest due at closing,
if the escrow closing date is 10/14/03 and the first payment is due
11/1/03.
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter 1st payment date 1 1 : 1 : 0 3 11-1-03
Subtract closing date to
find number of days – 1 0 : 1 4 : 0 3 = 18.00
USER’SGUIDE — 19
CALCULATOR SETTINGS
Decimal Place Selection
W keyith the s , 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 sfollowed by the number of decimal places you wish to
display:
s 6 0.000000
s 5 0.00000
s 4 0.0000
s 3 0.000
s 2 0.00
s 1 0.0
s 0 0.
s • floating point
To return to the standard two-decimal place setting, press s 2.
Note All: This setting will remain until you turn your calculator off, perform a Clear
( Ys x), or until you change it using the commands above. ou can select to perma-
nently maintain your decimal place selection (remains even after you turn the calcula-
tor off) by selecting "Hold Entry" for decimal settings under Preferences on page 20.
USER’SGUIDE — 21
(Cont’d)
After s,
Keep Description
Pressing (Press + to Advance
=:Display within each category, – to Back up):
4Mortgage Insurance (MI)
- Clr-Clr M Ins — Clears mortgage insurance (% and $)
upon o o. (Default)
- Clr OFF M Ins — Clears mortgage insurance (% and $)
at O.
- HOLD Pct. M Ins — Holds only percent (%) mortgage
insurance entry at O.
- HOLD ALL M Ins — Holds (% or $) mortgage insurance
entry at O.
5Amortization/Single Entries
- AMRT Ent-Ent — Displays amortization for specified
year only — e.g., enter 5 a =
payments 49-60. (Default)
- AMRT Displays amortization from beginning1-Ent —
to specified year — e.g., enter 5
a = payments 1-60.
6Display Qualifying Ratios
- Q-R PRESS 1 — Displays ratio at beginning of
sequence. (Default)
- Q-R AT END — Displays ratio at end of sequence.
22 — QUALIFIER PLUS ®IIIX
MEMORY
Accumulative Memory
Whenever the key is pressed, the displayed value will be addedµ
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
Display and clear Memory ® ®
Subtract displayed value from Memory s µ
Replace Memory with displayed value s ® µ
The Memory is semi-permanent; that is, it will only be cleared when
you:
1) turn off the calculator;
2) press ® ®; and
3) press s x (Clear All).
Examples:
STEPS DISPLAYKEYSTROKES
Store number into Memory 3 5 5 µ 355.00
Add number to Memory 2 5 5 µ 255.00
Recall total in Memory ® µ 610.00
Subtract from Memory 7 4 5 s µ 745.00
Recall total in Memory ® µ -135.00
Replace Memory 5 0 s ® µ 50.00
Recall and clear Memory ® ® 50.00
USER’SGUIDE — 23
Memory Storag ee K ys (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 calculator is
turned off, and will only clear when a “Clear All” is performed (via
s x).
You can replace a value in one of these Memory registers by storing
a new value in place of the stored value.
FUNCTION KEYSTROKES
Store single value in M0 s ® 0
Store single value in M1 s ® 1
Store single value in M2-M6 s ® 2, , , 3 4 5 or 6
Clear register (e.g., M1) 0 s ® 1
Review stored value (e.g., M1) ® 1
Clear stored value* s x
*Perform a s x (Clear All) with caution, as it will clear any stored values from your
calculator’s registers.
Example:
Store 175 into M1, recall the value, and then store a new value in
place of the first stored value:
KEYSTROKES DISPLAY
1 7 5 s ® 1 M-1 175.00
O o 0.00
® 1 M-1 175.00
1 5 0 s ® 1 M-1 150.00
24 — QUALIFIER PLUS ®IIIX
Ad g editional Memory Stora e K ys (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 registers, use the follow-
ing keystrokes: s ® • [#], with [#] being digits 0 9- . These
storage registers operate identically to M0-M6.
Examples:
Store 250 into M10 and recall the value:
KEYSTROKES DISPLAY
2 5 0 s ® • 0 M-10 250.00
O o 0.00
® • 0 M-10 250.00
Store 350 into M11 and recall the value:
KEYSTROKES DISPLAY
3 5 0 s ® • 1 M-11 350.00
O o 0.00
® • 1 M-11 350.00
Note – .: Repeat the above procedure for registers 12-19, using digits 2 9
Note: To clear all above values stored in Memory, press s x.
USER’SGUIDE — 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 variable: p.
2. When computing future value problems, enter the present value
into the lkey.
3. Financial values may be entered in any order you want.
4. TEntered values for erm 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 otwice after completing a finan
cial problem to ensure that you have cleared the previous l
and pregisters.
7. -When solving for a financial component, the calculator may dis
play the word “run” in the display. Solving for interest may take
several seconds (up to 15) while the word “run” displays.
8. Once you have calculated an answer, for example, a payment,
you can go back and change any financial variable and recalcu-
late your new answer without re-entering all the other data. This
is handy for demonstrating various “what if” loan problems.
9. Successive presses of the p key will calculate: 1) the Principal
and Interest (P&I) payment; 2) the PITI payment, which includes
Property Tax, Property Insurance and Mortgage Insurance, if
entered; 3) the Total payment (PITI plus any entered housing
expenses); and 4) the Interest-Only payment.
EXAMPLES
26 — QUALIFIER PLUS ®IIIX
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 DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter loan amount 2 6 5 ) l*265,000.00
Enter term 3 0 T 30.00
Enter interest 6 • 7 5 ˆ 6.75
Find monthly P&I payment p“run” 1,718.78
*Note: Use the )key to save keystrokes.
What is the new payment, if the interest rate is lowered to 6.5%?
STEPS DISPLAYKEYSTROKES
Enter new interest rate 6 • 5 ˆ 6.50
Find monthly P&I payment p“run” 1,674.98
Finding the Interest Rate
Find the interest rate on a mortgage where the loan amount is
$98,500, the term is 30 years, and the payment is $1,150 a month.
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter loan amount 9 8 5 0 0 l 98,500.00
Enter term 3 0 T 30.00
Enter monthly payment 1 1 5 0 p 1,150.00
Find annual interest ˆ“run” 13.78
Find periodic interest ˆ1.15
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 DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter loan amount 1 5 ) l 15,000.00
Enter interest 1 0 ˆ 10.00
Enter monthly payment 2 0 0 p 200.00
Find term in years T“run” 9.85
Find periodic term T118.19
USER’SGUIDE — 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 DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter interest 7 • 8 ˆ 7.80
Enter term 3 0 T 30.00
Enter monthly payment 1 5 0 0 p 1,500.00
Find loan amount l“run” 208,370.81
Enter new interest rate 7 • 5 ˆ 7.50
Find new loan amount l“run” 214,526.44
Paying Off a Mortgage Early (Making Larg aer P yments)
How long does it take to pay off a 30-year, fixed-rate mortgage of
$150,000 at 8.5% interest if you add an extra $200 to the mortgage
payment each month?
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter loan amount 1 5 0 ) l 150,000.00
Enter interest 8 • 5 ˆ 8.50
Enter term 3 0 T 30.00
Find monthly P&I payment p1,153.37
Add additional payment
amount + 2 0 0 = 1,353.37
Enter as new
payment amount p1,353.37
Find reduced loan term T“run” 18.15
28 — QUALIFIER PLUS ®IIIX
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 DISPLAYKEYSTROKES
Clear calculator o o 0.00
Multiply loan amount
by interest 5 ) x 6 % = 300.00
Multiply by term x 5 = 1,500.00
Add original loan amount + 5 ) = 6,500.00
If the loan is compounded monthly, what will you owe?
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter loan amount 5 ) l 5,000.00
Enter term 5 T 5.00
Enter interest 6 ˆ 6.00
Find future value s l “run” 6,744.25
Future Value
Given any four components to a problem that includes a future
value, you can calculate the fifth.
Appreciation
You purchased a home for $350,000 and want to know its value in 3
years, figuring an inflation or appreciation rate of 6%. (Set periods to
one per year.)
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Set to 1 payment/year 1 s ÷ 1.00
Enter present value* 3 5 0 ) l 350,000.00
Enter term in years 3 T 3.00
Enter appreciation rate 6 ˆ 6.00
Find future value** s l “run” 416,855.60
Return to 12 payments/year
1 2 s ÷ 12.00
* Present Value (PV) = original purchase price; enter as l
** Future Value (FV) = s l
USER’SGUIDE — 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-
ments per year.
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter # of payments/year 4 s ÷ 4.00
To recall the currently stored number of payments:
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Recall # of payments/year ® ÷ 4.00
IMPORTANT: To return payments per year to the default value
of 12, perform the following steps:
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter # of payments/year 1 2 s ÷ 12.00
Finding a Quarterl aymenty P
Find the quarterly payment on a 10-year loan of $15,000 with an
annual interest rate of 12%.
STEPS DISPLAYKEYSTROKES
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
Enter annual interest 1 2 ˆ 12.00
Find quarterly payment p“run” 648.94
Reset to 12 payments/year 1 2 s ÷ “run” 12.00
30 — QUALIFIER PLUS ®IIIX
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 also enter the down pay-
ment in both percent or dollar format. For example, to enter 20%,
enter 20 and press the d key (you do not have to label it as a
percent). Or enter $20,000 (e.g., 2 0 ) d).
Note: A -number under 100 entered as the Down Payment is assumed to be a per
centage.
Note ,: When using P d, and l keys, it's recommended that you always enter
the two known values (Price and Down Payment), then solve for the third (Loan
Amount), before calculating financial values.
Finding Loan Amount Based on Sales Price and Down Payment
Find both the down payment dollar amount and loan amount if the
sales price is $250,000 and you're planning to put 20% down.
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter sales price 2 5 0 ) P 250,000.00
Enter down payment % 2 0 d 20.00
Find down payment $ d 50,000.00
Find loan amount l 200,000.00
N o t e: You can find Sales Price based on an entered Loan Amount and Down Payment,
or find the Down Payment based on entered Sales Price and Loan Amount values.
USER ’SGUIDE — 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 addition to the
regular P&I payment. You may also enter monthly expenses, such
as homeowner’ -s association dues—these are included in the calcu
lation of the total payment (PITI plus expenses).
By default, the Property Tax and Insurance values are cleared when
the calculator is shut off, while the Mortgage Insurance value clears
when you press o twice. However, you may use the Preference
Settings ( ) to permanently store, or hold all Tax and Insurances =
(% and $) values when the calculator is turned off (see page 20).
Note: There’s a separate Preference Setting for Mortgage Insurance.
Tax and Insurance can be entered as dollar amounts or percent-
ages. If entered as percentages, the Sales Price or Loan Amount
can be changed and tax and insurance will be recalculated automati-
cally. If entered as dollar amounts, however, they will need to be re-
entered for a change in Sales Price or Loan Amount to be correct.
Entering values 10 or less are assumed to be annual percentage
rates (you do not need to use the percent key).
—IMPORTANT— Property Tax and Property Insurance rates are
based on the Sales Price (therefore, a Down Payment or Sales
Price should be entered). The Mortgage Insurance rate is based
on the Loan Amount. If neither Sales Price nor Down Payment
has been entered, the Sales Price is defaulted to equal the Loan
Amount (basically assuming a 100% loan), in which case the
Tax and Insurance rates will be based on the Loan Amount
value entered.
Note: If you are underwriting a loan, many lenders choose to use loan amount
instead of price when figuring out Hazard Insurance. In this case, you will need to
turn your Hazard Insurance into a dollar amount: Loan Amount x Hazard Insurance
rate = Hazard Insurance dollar amount. By entering a lower amount into Insurance, it
will improve the Buying Power of your client. However, the client will only be covered
for the loan amount and not the complete value of the home.
32 — Q UALIFIER PLUS ®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 DISPLAYKEYSTROKES
Set property tax rate 1 • 5 t 1.50
Set insurance rate • 2 5 I 0.25
Set mortgage insurance rate
• 5 s I 0.50
Recalling Tax and Insurance % Rates
Recall your stored rates:
STEPS DISPLAYKEYSTROKES
Recall tax rate ® t 1.50
Recall insurance rate ® I 0.25
Recall mortgage insurance
rate ® s I 0.50
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 20).
Setting Tax and Insurance $
Enter annual property taxes estimated at $5,500, property insurance
at $350 and mortgage insurance at $600:
STEPS DISPLAYKEYSTROKES
Set annual taxes 5 5 0 0 t 5,500.00
Set annual property
insurance 3 5 0 I 350.00
Set annual mortgage
insurance 6 0 0 s I 600.00
N o t e: Again, to review stored values, press and the applicable key (e.g., ® ® t) .
USER ’SGUIDE — 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 an annual property tax rate
of 1.5%, a property insurance rate of 0.25% and a mortgage insur-
ance rate of 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 DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter property tax rate 1 • 5 t 1.50
Enter insurance rate • 2 5 I 0.25
Enter mortgage insurance
rate • 5 s I 0.50
Enter price 2 5 0 ) P 250,000.00
Enter down payment % 1 0 d 10.00
Enter term 3 0 T 30.00
Enter interest 8 ˆ 8.00
Find loan amount l 225,000.00
Recall property tax % ® t 1.50
Calculate property tax $ t 3,750.00
Recall property insurance %
® I 0.25
Calculate property
insurance $ I 625.00
Recall mortgage
insurance % ® s I 0.50
Calculate mortgage
insurance $ I 1,125.00
Find P&I payment p 1,650.97
Find PITI payment p 2,109.30
Note: The same procedure can be performed to find the opposite — that is, to find
the % rates based on entered annual dollar amounts or insurance premiums. Simply
enter the tax/ins. dollar amounts and loan variables first, and press ® and the
tax/ins. key to calculate the percentage rate.
34 — QUALIFIER PLUS ®IIIX
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 $325,000 and the down payment is 5%. Annual prop-
erty taxes are estimated at 1.3%, annual property insurance at
0.25%, and annual mortgage insurance at 0.45%.
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter term in years 3 0 T 30.00
Enter annual interest 6 • 5 ˆ 6.50
Enter sales price 3 2 5 ) P 325,000.00
Enter down payment 5 d 5.00
Set tax rate* 1 • 3 t 1.30
Set property insurance rate*
• 2 5 I 0.25
Set mortgage insurance rate*
• 4 5 s I 0.45
Find loan amount l308,750.00
Find P&I payment p“run” 1,951.51
Find PITI payment p2,487.08
* You may enter Tax, Insurance, or Mortgage Insurance as a percentage or dollar
amount (i.e., ($)4225 t, ($)812.5 I, or ($)1389.38 s I).
Total Payment (Including Expenses) and Interest-Only Payment
Find the total payment (including principal, interest, tax/insurance
and mo. expenses) and the interest-only payment on a 30-year, 6%
loan if the home’s selling price is $330,000 and the down payment is
15%. (Local annual property taxes are estimated at $5,900, property
insurance at $500, mortgage insurance at $1,200, and mo. expens-
es — e.g., homeowner’s assn dues plus utilities — at $150.)
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter term in years 3 0 T 30.00
Enter annual interest 6 ˆ 6.00
Enter sales price 3 3 0 ) P 330,000.00
Enter down payment % 1 5 d 15.00
Find dollar $ d49,500.00
Enter property tax 5 9 0 0 t 5,900.00
Enter property insurance 5 0 0 I 500.00
Enter mortgage insurance 1 2 0 0 s I 1,200.00
Enter monthly expenses 1 5 0 e 150.00
Find loan amount l280,500.00
(Cont’d)
USER’SGUIDE — 35
(Cont’d)
STEPS DISPLAYKEYSTROKES
Find P&I payment p“run” 1,681.74
Find PITI payment p2,315.07
Find total payment (PITI plus
monthly expenses) p2,465.07
Find interest-only payment p1,402.50
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 computation for their particular tax situation.
Buyers in a 28% income tax bracket are looking to finance a $150,000
mortgage for 30 years at 8% annual interest. If they will be paying
approximately $1,500 in annual property taxes and $250 in annual
property insurance, find their estimated annual tax savings (or mort-
gage interest/property tax savings) and “after-tax” monthly payment.
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter term in years 3 0 T 30.00
Enter annual interest 8 ˆ 8.00
Enter annual property tax 1 5 0 0 t 1,500.00
Enter annual property ins. 2 5 0 I 250.00
Enter loan amount 1 5 0 ) l 150,000.00
Find P&I payment p“run” 1,100.65
Find PITI payment p1,246.48
Enter tax bracket 2 8 s p 28.00
Find annual income
tax savings p3,767.32
Find monthly tax savings p313.94
Find “after-tax” payment p932.54
— DO NOT CLEAR CALCULATOR —
If the above loan starts in July, find the “after-tax” payment.
STEPS DISPLAYKEYSTROKES
Set Mo. 1 Offset to July 7 s ) 7.00
Enter tax bracket 2 8 s p 28.00
Find annual tax savings p1,887.16
Find monthly tax savings p314.53
Find “after-tax” payment p931.95
Return Mo. Offset to Jan. 1 s ) 1.00
36 — QUALIFIER PLUS ®IIIX
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 rate is
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 DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter interest rate 7 • 5 ˆ 7.50
Enter term 3 0 T 30.00
Enter down payment 1 0 d 10.00
Enter tax bracket 2 8 s + 28.00
Enter property tax rate 1 • 2 5 t 1.25
Enter insurance rate • 3 5 I 0.35
Enter current monthly rent to find
comparable home price 1 2 5 0 s P 216,781.98
Find comparable loan
amount P195,103.78
Find PITI payment P1,653.24
Find annual tax savings P4,838.84
Find monthly tax savings P403.24
Re-display tax bracket P28.00
Re-display monthly rent P1,250.00
USER’SGUIDE — 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 initial ARM payment just as you would for any
standard, fixed-rate loan — the ARM function is only used for
“adjusted” periods.
2. The “split” Interest T:erm Adjustment entry for ARMs should
be entered on an annual basis (although you can also enter a 6-
month adjustment term as .5). This value is permanently stored
in memory.
3. After performing an ARM calculation, your permanently stored
values for Term and Interest will be changed, since performing
an ARM alters these values.
4. To calculate a “decreasing ARM,” enter the two ARM parame-
ters, but press the skey 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).
Prior to setting your ARM parameters, key in the maximum life-
time interest increase followed by s %. This permanently
sets the lifetime cap. To restore the cap to “0” enter .0 s %
38 — QUALIFIER PLUS ®IIIX
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 the remaining loan balance, current
interest rate and term.
STEPS DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter loan amount 1 7 6 ) l 176,000.00
Enter term in years 3 0 T 30.00
Enter annual interest 8 • 2 5 ˆ 8.25
Find initial monthly payment
(1st year) p“run” 1,322.23
Enter ARM parameters • 5 : 1 A 0.50 - 1.00
Find 1st adjusted (2nd year)
ARM payment A1 ARM 1,383.53
Find 2nd adjusted (3rd year)
ARM payment A2 ARM 1,444.72*
Find principal at start of
3rd year ® l 173,221.91
Recall current interest
rate ® ˆ 9.25
Recall remaining term ® T 28.00
*Note: You may continue pressing A to find the 4th, 5th year, etc. increasing ARM
payments. The display will show the payment number to the left.
USER’SGUIDE — 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 DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter loan amount 1 7 6 ) l 176,000.00
Enter term in years 3 0 T 30.00
Enter annual interest 8 • 2 5 ˆ 8.25
Find monthly payment
(1st year) p“run” 1,322.23
Enter interest cap 4 s % CAP ARM 4.00%
Enter ARM parameters • 5 : 1 A 0.50 - 1.00
Find 1st adjusted (2nd year)
ARM payment A1 ARM 1,383.53
Find 2nd adjusted (3rd year)
ARM payment A2 ARM 1,444.72
Find 3rd adjusted (4th year)
ARM payment A3 ARM 1,505.71
Find 4th adjusted (5th year)
ARM payment A4 ARM 1,566.43
Find 5th adjusted (6th year)
ARM payment A5 ARM 1,626.81
Find 6th adjusted (7th year)
ARM payment A6 ARM 1,686.78
Find 7th adjusted (8th year)
ARM payment A7 ARM 1,746.26
Find 8th adjusted (9th year)
ARM payment* A8 ARM 1,805.17
Find 9th adjusted (10th year)
ARM payment* A9 ARM 1,805.17
Find principal at start of
10th year ® l 163,155.23
Recall current interest rate ® ˆ 12.25
Recall remaining term ® T 21.00
Reset cap to zero 0 s % CAP ARM 0.00%
*Note that the payment for 8th and 9th adjustments (corresponding to the 9th and
10th years) is the same because the lifetime cap was reached on the 8th adjustment.
An “M” for “maximum” will appear at the bottom of the display once the Cap is
reached. Be sure to set the Cap back to “0” by pressing 0 s % before starting a
new ARM problem.
40 — QUALIFIER PLUS ®IIIX
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 DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter loan amount 2 5 0 ) l 250,000.00
Enter term in years 3 0 T 30.00
Enter annual interest 5 ˆ 5.00
Find initial monthly payment
p“run” 1,342.05
Enter ARM parameters 1 : 1 s A -1.00 - 1.00
Find 1st lower ARM
payment* A 1 ARM 1,197.01
Find 2nd lower ARM
payment* A 2 ARM 1,064.20
*For second and third year payments.
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 DISPLAYKEYSTROKES
Clear calculator o o 0.00
Enter loan amount 3 0 0 ) l 300,000.00
Enter term in years 3 0 T 30.00
Enter annual interest 5 ˆ 5.00
Find initial monthly
payment p “run” 1,610.46
Enter 1st ARM adjustment 1 : • 5 A 1.00 - 0.50
Find higher ARM payment A 1 ARM 1,796.41
Enter 2nd ARM adjustment 1 • 5 : 1 s A -1.50 - 1.00
Find lower ARM payment A “run” 1 ARM 1,527.15
Produktspecifikationer
| Varumärke: | Calculated Industries |
| Kategori: | Kalkylator |
| Modell: | Qualifier Plus IIIx |
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