Calculated Industries 3423 Canadian Qualifier Plus 4x Calculator User Guide
- June 13, 2024
- CALCULATED INDUSTRIES
Table of Contents
Calculated Industries 3423 Canadian Qualifier Plus 4x Calculator
Product Information: CANADIAN ADVANCED REAL ESTATE FINANCE CALCULATOR
The CANADIAN ADVANCED REAL ESTATE FINANCE CALCULATOR with CASHFLOW and BUILT- IN CANADIAN INTEREST MODE is a versatile calculator designed specifically for mortgage qualifying and financial calculations. It is equipped with various features to simplify complex calculations related to real estate finance.
Model: 3423
Contact Information:
- Phone: 1.888.610.7664
- Website: www.calcert.com
- Email: sales@calcert.com
Table of Contents
- Key Definitions
- Canadian/U.S. Interest Modes
- Preference Mode
- Examples
- Basic Math
- Percentage Calculations
- Memory Functions
- Delta % – Rate of Appreciation
- Setting Decimal Places
- Using the Meters and Feet Conversion Function
- Date Function
- Setting Qualifying Ratios
- Qualifying Mortgage Amount
- Restricted Qualifying
- Unrestricted Qualifying
- Qualifying Comparison (Two Ratios at Once)
- Finding Income Required and Allowable Monthly Debt
- Cash Flow
- Examples – U.S. Mode
- Monthly Loan Payment
- Interest-Only Payment (Entry)
- Setting Tax and Insurance
- PITI Payment and Interest-Only Payment
- Qualifying Loan Amount
- Interest-Only Qualifying Loan Amount
- APR and Total Finance Charges, Including Mortgage Insurance
- Appendix
- Default Settings
- Repair and Return
- Warranty
- FCC Class B
- Looking For New Ideas
Product Usage Instructions:
Key Definitions:
- On/Clear Key: Turns on power. Press once to clear the display. Press twice to clear all temporary values.
- Off Key: Turns off power and clears all non-permanent registers.
- Arithmetic operation keys: Used for performing mathematical operations.
- Keys used for entering numbers.
- Colon separator: Used for date, Amortization ranges, and qualifying ratios.
- Backspace: Deletes the last entered digit.
- Triple-zero entry key: Enters three zeros (000).
- Memory Function: Stores and recalls values for future use.
- Sets number of displayed decimal places and activates 2nd functions.
- Clear All: Clears or resets all stored values. Use with caution.
- Payments per year: Sets the number of payments per year. Default is 12 (monthly).
- Preference mode: Refers to specific settings. Refer to the User’s Guide for details.
- Meters to Feet (m ft): Converts entered value from Meters to Feet.
Please refer to the large User’s Guide for detailed instructions on how to use the various functions and features of the CANADIAN ADVANCED REAL ESTATE FINANCE CALCULATOR.
CANADIAN
QUALIFIER PLUS®4X
ADVANCEDREALESTATEFINANCECALCULATOR withCASHFLOWandBUILT-IN
CANADIANINTERESTMODE
Model3423
PocketReferenceGuide
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CANADIAN QUALIFIER PLUS® 4X
The CANADIAN QUALIFIER PLUS 4X calculator lets you perform mortgage qualifying
and financial problems with ease!
Quickly Solve:
· Time-Value-of-Money (TVM) Problems: Find Mortgage Amount, Term, Interest,
Payment, Future Value
· P&I payment and Total (PITH) payment · Sales Price and Down Payment · Loan-
to-Value · Complete Amortization · Bi-Weekly Mortgages · Qualifying Mortgage
Amount · Required Income/Debt · Effective Interest Rate · Qualifying Based on
Different Ratios · Cash Flows/Interest Analysis (IRR, NPV,
NFV) · Date Math · U.S. Loan Problems — TVM problems,
APR, Tax/Insurance, PITI Payment, U.S. Qualifying · and more!
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KEY DEFINITIONS
Note: This is a short “reference” guide. Please see your large User’s Guide for details.
o
O
+x ÷= % 09 and · :
b ) µ
On/Clear Key — Turns on power. Pressing once clears the display. Pressing
twice clears all temporary values.
Off Key — Turns all power off, clearing all non-permanent registers.
Arithmetic operation keys.
Percent Key — Four-function (+, , x, ÷) percent key.
Keys used for entering numbers.
Colon separator (for date, Amortization ranges, and qualifying ratios)
Backspace
Triple-zero entry key
Memory Function:
– µ Adds value on display to Memory – s µ Subtracts value on display from
Memory – ® µ Recalls Memory Total – ® ® Clears Memory and displays Memory
Total
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®
s sx s÷ s s= w sw W
sW
Recalls or re-displays a value when followed by a chosen key (e.g., ® ^ will
display current interest value)
Sets number of displayed decimal places and activates 2nd functions
Clear All
Note: perform with caution as it will clear/reset stored values.
Payments per year (Default 12, for monthly)
Change sign + or
Preference mode (see large User’s Guide)
Meters to Feet (m ft ) — Converts entered value from Meters to Feet.
Feet to Meters (ft m ) — Converts entered value from Feet to Meters.
Meters2 to Feet 2 (m 2 ft 2) — Converts entered value from Meters squared to
Feet squared.
Feet2 to Meters2 (ft 2 m 2) — Converts entered value from Feet squared to
Meters squared.
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s%
s) sT
Delta Percent ( ) — Finds the percent change between two values.
Month Offset
Bi-Weekly mortgage
l p
T ^ s^
Mortgage amount or present value
P&I, PITI (U.S.), Total (PITH) payment, and interest-only payment (U.S.)
Number of years
Annual interest rate
Effective Interest Rate (Eff%) — Converts value stored as interest to
equivalent U.S. rate.
s+
sl sb
P d
sd a sa q
Switches between Canadian and U.S. Interest Mode
Future value
Periodic — Identifies entry as periodic rather than yearly
Sales Price of home
Down Payment (entered in percent or dollar amount)
Loan-to-Value (LTV)
Amortization function
Remaining balance
Qualify based on 32%-40% (Canada)
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Q i D t
st
sD
C c sc R sR s6
Qualify based on 35%-42% (Canada)
Annual Income
Long-term, monthly Debt
Estimated annual property Tax (enter as percent or dollar amount)
Property Insurance — Used for calculating the Total Payment and for Qualifying
Housing Expense, including monthly heating cost (Canada)
Canadian Mortgage Insurance
Used to enter up to 20 Cash Flows
Used to enter Frequency
Internal Rate of Return
Net Present Value/Net Future Value
Clears Cash Flows
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U.S. ONLY KEYS:
s^
APR (Annual % Rate), including mortgage insurance, if entered
sp
Interest-Only Payment
s9
Estimated annual mortgage insurance, if applicable (enter as percent or dollar amount)
sq sQ
Note: The mortgage insurance preference setting only works with U.S. mortgage
insurance (s 9). It does not affect Canadian mortgage insurance (C).
Interest-only qualifying based on 32% – 40% ratios.
Interest-only qualifying based on 35% – 42% ratios.
s:
Odd-days interest
Canadian / U.S. Interest Modes
Your calculator can easily be switched between Canadian or U.S. Interest Mode
by pressing: s +
U.S. Mode allows:
· Entry/calculation of U.S. interest rates. · Entry/calculation of U.S.
mortgage
insurance (s 9). · Entry/calculation of interest-only pay-
ment. · APR calculation. · Interest-Only Qualifying
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Preference Mode
s=
Preference Mode (see User’s Guide for details)
Allows you to select special settings. To access, first press s and then the =
key. Toggle through the various categories by pressing the = key. Toggle
within each category by pressing the + key. To set the preference and exit,
press the o key. To reset the calculator back to its default settings, turn
off the calculator, hold down x and turn back on (“All Reset” will flash for
one second before clearing to zero).
EXAMPLES
Basic Math
This calculator uses standard chaining logic. This means the first value is
entered, then an operator, then the second value, then the Equals = key to get
your answer.
A. 2 1 6 + 8 4 = 300.00 B. 2 1 6 1 6 = 200.00
C. 1 2 x 1 2 = 144.00 D. 1 4 4 ÷ 1 2 = 12.00
Percentage Calculations
The Percent % key is used to find 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
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Memory Functions
Pressing the µ key adds the displayed value to cumulative Memory. s µ subtracts the displayed value from cumulative Memory. ® µ recalls and displays the total value in Memory. ® ® displays and clears the Memory.
KEYSTROKES
DISPLAY
355µ ®®
355.00
355µ 255µ 745s µ 77
135.00
Note: s ® µ may be used to replace any value in Memory with the displayed value.
KEYSTROKES
1. 3 5 5 µ
2. 5 0 0 s ® µ ®®
DISPLAY
355.00
500.00 500.00
Delta % – Rate of Appreciation
A home originally purchased for $150,000 sold a year later for $185,000. What
is the rate of appreciation?
KEYSTROKES
150)s% 185)=
DISPLAY
150,000.00 23.33
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Setting Decimal Places
You can use the s key to select the number of decimal places displayed. (Values are rounded using 5/4 rounding.) You may do this before or after finding an answer. Press s followed by the number of decimal places you wish to display:
s5 s4 s3 s2 s1 s0 s·
0.00000 0.0000 0.000 0.00 (Default) 0.0 0. Floating Decimal
Note: To return to the standard two decimal place setting, press s 2.
Using the Meters and Feet Conversion Functions
Using the w and W keys, you can quickly convert Meters to Feet, Feet to
Meters, Square Meters to Square Feet, and Square Feet to Square Meters.
Convert 5 Meters to Feet.
STEPS
KEYSTROKES
Clear
oo
Enter 5 Meters 5
Find number
of Feet
w
DISPLAY
0.00 5.
FEET 16.40
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Convert 20 Feet to Meters.
STEPS
KEYSTROKES
Clear
oo
Enter 20 Feet 2 0
Find number
of Meters s w
DISPLAY
0.00 20.
MET 6.096
Convert 10 Square Meters to Square Feet.
STEPS
KEYSTROKES
Clear
oo
Enter 10 Square
Meters
10
Find number of
Square Feet W
DISPLAY
0.00 10.
SQFT 107.64
Convert 20 Square Feet to Square Meters .
STEPS
KEYSTROKES
Clear
oo
Enter 20 Square
Feet
20
Find number of
Square Meters
sW
DISPLAY
0.00 20.
SQM 1.858
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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 Numerical Year. The date function lets you:
- add a number of days to a date to find a future date,
- subtract a number of days from a date to find a past date, and,
- subtract one date from another date to find the number of days in between.
If a 45-day escrow begins January 23, 2007, what is the closing date and day?
STEPS
Clear Enter month Enter day Enter year Add 45 days
KEYSTROKES
DISPLAY
oo
0.00
1:
1.-
23:
1-23-
07
1-23-07
+ 4 5 = FRI 03-09-07
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EXAMPLES — CANADIAN MODE
See page 5 for instructions to return your calculator to Canadian Mode if your
calculator does not display the letters “CDN” upon pressing the ^ key. Or, if
your calculator was not reset, press s + until the display reads “INT Cdn.”
Note: For more examples, see your User’s Guide.
Mortgages and Real Estate Mortgages
· The financial functions — l, p, T and — work just like you would say them.
For example, to find the payment on a $100,000 mortgage for 25 years at 10%
interest, enter the three known variables and press the key for the unknown
fourth variable: p.
· Financial values may be entered in any order.
· Values for Term and Interest are permanently stored in Memory.
· The word “run” will appear in the display when calculating interest and
other problems.
· Always press o twice after completing a financial problem to ensure the
financial registers are cleared.
(Cont’d)
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(Cont’d)
· Once an answer is calculated (for example, a payment) you can change any variable and recompute for a new answer without having to re-enter the other data.
Monthly Mortgage Payment
Find the monthly payment on a 25-year mortgage of $165,000 at 7.75% annual interest.
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Mortgage 1 6 5 ) l
165,000.00
Enter Term 2 5 T
25.00
Enter Interest 7 · 7 5 ^
7.75*
Find Payment p
1,233.08
*Note: When entering or calculating interest in Canadian Mode, the letters “CDN” will appear in the upper left side of the calculator display.
Term of a Mortgage
How long does it take to pay off a mortgage of $15,000 at 10% interest if you
make payments of $200 each month?
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Mortgage 1 5 ) l 15,000.00
Enter Interest 1 0 ^
10.00
Enter Payment 2 0 0 p
200.00
Find Term/yrs T
9.71
Periodic Term T
116.54
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Mortgage Amount
Approximately how much can you borrow if the interest rate is 7.5% on a
25-year mortgage and you can afford $1,500 in monthly payments? What if the
interest rate is lowered to 7%?
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Interest 7 · 5 ^
7.50
Enter Term 2 5 T
25.00
Enter Payment 1 5 0 0 p 1,500.00
Find Mortgage l
205,042.71
Enter new Interest
rate
7^
7.00
Find new Mortgage
Amount
l
214,158.52
Nominal Rate
Find the nominal rate on a mortgage if the mortgage amount is $155,500, term
is 25 years and payment is $1,150 per month.
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Mortgage 1 5 5 5 0 0 l
155,500.00
Enter Term 2 5 T
25.00
Enter Payment 1 1 5 0 p 1,150.00
Find annual
Interest
^
7.63
Find periodic
Interest
^
0.64
DO NOT CLEAR CALCULATOR
(Cont’d)
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(Cont’d) Effective Interest Rate What is the Effective Interest Rate?
STEPS
KEYSTROKES
DISPLAY
Find Effective
Rate (Eff%) s ^
Non-Monthly Mortgages and Payments Per Year (Pmt/Yr)
Most mortgages are paid monthly. If paying a non-monthly mortgage, however, the number of payments per year must be changed by entering the number of payments per year, then pressing s ÷, as shown in the following exercise:
Enter number of payments per year:
STEPS
Clear
KEYSTROKES
DISPLAY
oo
0.00
4 s ÷ (Pmt/Yr) 4.00
To recall the currently stored number of payments, press 7 ; :
STEPS
Clear
KEYSTROKES
oo 7 ; (Pmt/Yr)
DISPLAY
0.00 4.00
IMPORTANT: Return your calculator to 12 payments per year (default):
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
1 2 s ÷ (Pmt/Yr)
12.00
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Total (PITH) Payment
· Term: · Interest: · Sales Price: · Down Payment: · Property Tax: · Monthly
heating expense:
25 years 7%
$198,000 5%
1.3% $100
Find the total (PITH) payment:
STEPS
Clear Enter Term Enter Interest Enter Price
Down% Set Tax%* Enter heating Find Mortgage Find P&I Pmt. Find total, or
(PITH) Pmt.
KEYSTROKES
DISPLAY
oo
0.00
25T
25.00
7^
7.00
198)P
198,000.00
5d
5.00
1·3t
1.30
1 0 0 s D 100.00
l
188,100.00
p
1,317.48
p
1,631.98
*Note: Perform the same steps when entering a dollar amount for tax — e.g., $2,574 (1.3%) tax, enter 2 5 7 4 t.
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Quarterly Payment
Find the quarterly payment on a ten year, 12%-interest loan of $15,000.
STEPS
KEYSTROKES
DISPLAY
Set to
USA Mode s +
INT USA
Clear
oo
0.00
Set to four payments
per year
4s÷
4.00
Enter Loan 1 5 ) l 15,000.00
Enter Term 1 0 T
10.00
Enter Interest 1 2 ^
12.00
Find quarterly
Payment p
648.94
Reset to 12 payments
per year
12s÷
12.00
Reset to Canadian
Mode
s+
INT Cdn
Mortgage Amount Based on Sales Price and Percent Down Payment
Find mortgage amount and dollar down payment if the price is $235,900 and you’re putting 20% down.
STEPS
Clear Enter Price
Enter Down% Find Down$ Find Mortgage
KEYSTROKES
DISPLAY
oo
0.00
235900P
235,900.00
20d
20.00
d
47,180.00
l
188,720.00
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Sales Price Based on Mortgage Amount and Percent Down Payment
Find sales price if the mortgage amount is $150,000, down payment 5%, term 25 years and interest rate 7.75%.
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Mortgage 1 5 0 ) l
150,000.00
Enter Down% 5 d
5.00
Enter Term 2 5 T
25.00
Enter Interest 7 · 7 5 ^
7.75
Find Payment p
1,120.98
Find $Down d d
7,894.74
Find Price
P
157,894.74
Finding Loan-to-Value (LTV)
Find the Loan-to-Value if a buyer is putting $15,000 down on a $215,500 home. Then find the mortgage amount.
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Price 2 1 5 5 0 0 P
215,500.00
Enter Down$ 1 5 ) d 15,000.00
Find LTV
sd
93.04
Find Mortgage l
200,500.00
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Canadian Mortgage Insurance
Find the monthly P&I payment on a 25-year, $150,000 mortgage at 7.5% annual
interest with 1.5% mortgage insurance.
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Mortgage 2 5 0 ) l
Enter Term
25T
50,000.00 25.00
Enter Interest 7 · 5 ^
7.50
Enter Mortgage
Insurance 1 · 5 C
1.50
Find Payment p
1,856.32
Future Value (Appreciation)
What will a $250,000 home be worth in three years, figuring 6% appreciation?
STEPS
KEYSTROKES
DISPLAY
Set to
USA Mode s +
INT USA
Clear
oo
0.00
Set 1 pmt/yr 1 s ÷
1.00
Enter present
value
250)l
250,000.00
Enter Term 3 T
3.00
Enter appreciation
rate
6^
6.00
Find FV
sl
297,754.00
Return to 12 payments
per year
12s÷
12.00
Reset to Canadian
Mode
s+
INT Cdn
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Amortization (Total Principal / Total Interest, Remaining Balance)
· Mortgage: · Term: · Interest:
$175,000 25 years
7.5%
Note: See large User’s Guide for more examples.
Find total interest, principal and total payments. Then, find the remaining balance after ten years.
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Mortgage 1 7 5 ) l
175,000.00
Enter Term 2 5 T
25.00
Enter Interest 7 · 5 ^
7.50
Find Payment p
1,280.22
Find # pmts. a
1-300
Find ttl. int. a
209,066.33
Find ttl. prin. a
175,000.00
Find ttl. pmts a
384,066.33
Find balance 1 0 s a
139,076.82
Note: If Canadian Mortgage Insurance (Cdn MI) is entered, payment, total interest, total principal, total payments, and remaining balance values will be based on the loan amount (incuding mortgage insurance).
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Bi-Weekly Mortgages
· Mortgage: · Term: · Int:
$212,500 25 years
7.85%
Find Bi-Weekly term, savings, total cost and Bi-Weekly payment:
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Mortgage 2 1 2 5 0 0 l
212,500.00
Enter Term 2 5 T
25.00
Enter Interest 7 · 8 5 ^
7.85
Find Payment p
1,601.53
Find Bi-Weekly
Term
sT
20.14
Find total interest
savings
T
61,224.88
Find total interest
paid
T
206,735.29
Find total
principal
T
212,500.00
Find total
payments T
419,235.29
Find Bi-Weekly
Payment p
800.77
Setting Qualifying Ratios
In Canadian Mode, GDS:TDS (Gross Debt Service/Total Debt Service) ratios of 32% and 40% are permanently stored in the q key, and optional ratios of 35%-42% in the Q key. However, you can enter any ratios you desire. For example, enter new qualifying ratios of 30% for GDS and 38% for TDS in q:
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STEPS
KEYSTROKES
DISPLAY
Clear Set Ratios
oo
0.00
30:38q
30.00-38.00
Qualifying Mortgage Amount
· Buyer’s Income: · Monthly Debt: · Down Payment: · Property Tax: · Monthly heating exp: · Term: · Interest: · GDS/TDS Ratios:
$45,000 $250 25% 1.5% $100
25 years 7.25%
32% 40%
Find qualifying mortgage amount, price and total payment:
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Income 4 5 ) i 45,000.00
Enter Debt 2 5 0 D
250.00
Enter %Down 2 5 d
25.00
Set Tax%
1·5t
1.50
Enter heating
expense
1 0 0 s D 100.00
Enter Term 2 5 T
25.00
Enter Interest 7 · 2 5 ^
7.25
Enter Ratios 3 2 : 4 0 q
32.00 40.00
Find maximum qualifying
Mortgage q
124,633.84
Find Price
P
166,178.45
P&I Payment p
892.28
Total Payment p
1,200.00
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“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
7.25% interest and 25-year term, tax rate of 1.5%, monthly heating expense of
$100, and qualifying ratios of 32%:40%).
Note: If you aren’t continuing from the previous problem, you’ll need to re-
enter interest, term, and property tax.
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter annual
Income
4 5 ) i 45,000.00
Enter monthly
Debt
600D
600.00
Enter monthly
heating cost 1 0 0 s D 100.00
Recall Interest ® ^
7.25
Recall Term ® T
25.00
Recall property
Tax%
®t
1.50
Enter Down Payment
15d
15.00
Display Qualifying
Ratios
q
32.00 40.00
Find “restricted” Qualifying
Mortgage Amount
q “run” 92,702.30
Find sales
Price
P
109,061.53
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Find $ Down Payment dd
Find total (PITH) Payment p p
16,359.23 900.00
— DO NOT CLEAR CALCULATOR —
“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
“restricted” mortgage based on (income or debt)? What is the total allowable
monthly debt?
STEPS
KEYSTROKES
DISPLAY
Find actual
Ratios
qqq
“run” 24.00 – 40.00
Find “unrestricted” mortgage
amount
q
UNR 127,465.66 LA DEBT*
Find maximum allowable
debt
q ALW 300.00 MO DEBT**
Clear Tax register
0t
0.00
*The “UNR” in the top of the display and “INC” in the lower right tells you this unrestricted Mortgage Amount is based on the buyer’s Income Ratio — therefore, the restricted Qualifying Mortgage Amount is based on the buyer’s Debt Ratio.
(Cont’d)
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(Cont’d)
**The restricted Qualifying Mortgage Amount is based on the ratio (income or
debt) that limits the buyer the most — in this case it was debt. This means
that if the buyer lowers their debt below the maximum allowable of $300 a
month, they would qualify for the larger “unrestricted” mortgage amount.
Qualifying Comparison (Two Ratios at Once)
· Buyer’s Income: · Monthly Debt: · Property Tax: · Monthly heating cost
and condo fees: · Down Payment: · Term: · Interest:
$50,000 $125
1.25%
$120 10% 25 years 7.25%
Qualify this buyer based on both stored 32%:40% and 35%:42% ratios:
STEPS
Clear Enter Income Enter Debt Enter Tax% Enter monthly
Expenses Enter %Down Enter Term Enter Interest
KEYSTROKES
DISPLAY
oo
0.00
5 0 ) i 50,000.00
125D
125.00
1·25t
1.25
1 2 0 s D 120.00
10d
10.00
25T
25.00
7·25^
7.25
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Display Qual 1
Ratios
q
32.00 40.00
Find Qual 1 maximum Qualifying
Mortgage q
145,893.06
Find Qual 1 P&I
Payment p
1,044.48
Find Qual 1 PITH
Payment p
1,333.33
— DO NOT CLEAR CALCULATOR —
STEPS
KEYSTROKES
DISPLAY
Display Qual 2
Ratios
Q
35.00 42.00
Find Qual 2 maximum Qualifying
Mortgage Q
160,923.25
Find Qual 2 P&I
Payment p
1,152.08
Find Qual 2 Total
Payment p
1,458.33
Finding Income Required and Allowable Monthly Debt
· Sales Price: · Down%: · Property Tax: · Heating Expense: · Term: · Interest:
$225,000 35% 1.5% $125
25 years 7.5%
Find the income required to finance a $225,000 home and also find the maximum allowable debt.
(Cont’d)
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(Cont’d)
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Interest 7 · 5 ^
7.50
Enter Term 2 5 T
25.00
Enter Tax% 1 · 5 t
1.50
Enter heating 1 2 5 s D 125.00
Enter Price 2 2 5 ) P
225,000.00
Enter %Down 3 5 d
35.00
Find $ Down d
78,750.00
Find Mortgage l
146,250.00
Display Qualifying
Ratios
q
32.00 40.00
Find income
required
q
55,355.59
Find maximum allowable Monthly
Debt
q
369.04
Find P&I
Payment p
1,069.90
Find total
p
1,476.15
Cash Flow
A real estate investor wishes to purchase a home for $225,000 and rent it out. He’d like a return of 9% and expects to sell it after 5 years for $275,000. He expects the annual cash flows below. Find the IRR, NPV & NFV.
Year 1 Year 2 Year 3 Year 4 Year 5
Annual Cash Flow $16,000 $16,600 $16,900 $17,200 $17,900+$275,000 (292,900)
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STEPS
KEYSTROKES
DISPLAY
Clear cash flow s 6″CF Cleared” 0.00
Set 1 payment
per year
1s÷
1.00
Enter initial investment as
cash outlay 2 2 5 ) s c
C-0 -225,000.00
Enter 1st CF
16)c C-1 16,000.00
Enter 2nd CF 1 6 6 0 0 c C-2 16,600.00
Enter 3rd CF 1 6 9 0 0 c
C-3 16,900.00
Enter 4th CF 1 7 2 0 0 c
C-4 17,200.00
Add 5th CF
to sale Price 1 7 9 0 0 +
275)=c
C-5 292,900.00
Find IRR
R
“run” 11.04
Enter desired rate of return and
calculate NPV9 s R
“run” 19,250.50
Find NFV
R
29,619.29
Re-display desired rate
of return
R
9.00%
Set payment per
year to 12 1 2 s ÷
12.00
Clear registers* s x “All Cleared” 0.00
Analysis: This investment would provide an internal rate of return greater than the desired rate of return, making this a positive investment.
*This will clear Cash Flows and reset payments per year to 12 (e.g. monthly) for performing the other examplesin this guide. Note: See Large User’s Guide for more examples.
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EXAMPLES — U.S. MODE
IMPORTANT: Your calculator must be in U.S. Mode by pressing s +.
Monthly Loan Payment
Find the monthly payment on a 30-year loan of $215,000 at 7.5% interest.
STEPS
KEYSTROKES
DISPLAY
Set US Mode Clear Enter Loan
Enter Term Enter Interest Find Payment
s+
INT USA
oo
0.00
215)l
215,000.00
30T
30.00
7·5^
7.50
p
1,503.31
Interest Only Payment (Entry)
How much can you borrow if the interest rate is 7% on a 30-year interestonly mortgage and you can afford to pay $1,000 each month?
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Interest 7 ^
7.00
Enter Payment 1 ) s p 1000.00
Find Loan
l
171,428.57
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Setting Tax and Insurance
Enter an annual property tax rate of 1.5%, a property/homeowner’s insurance rate of .25%, and a mortgage insurance rate of .50%:
STEPS
KEYSTROKES
DISPLAY
Set Tax%*
1·5t
1.50 ANN TAX %
Set homeowner’s
insurance% · 2 5 s t
0.25 ANN INS %
Set mortgage
insurance% · 5 0 s 9
0.50 ANN M INS %
Recall Tax% ® t
1.50
Recall insurance%
®st
0.25
Recall mortgage
insurance% ® s 9
0.50
*Enter dollar values for tax/insurance in the same manner — e.g., to enter $4,500 estimated annual tax, enter 4 5 0 0 t.
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PITI Payment and Interest-Only Payment
· Term:
30 years
· Interest:
6%
· Sales Price:
$255,000
· Down Payment:
5%
· Property Taxes:
1.3%
· Property Insurance:
0.25%
· Mortgage Insurance:
0.50%
· Monthly Association Dues:
$60
FindtheP&I and total payment:
STEPS
KEYSTROKES
DISPLAY
Clear
oo
0.00
Enter Term 3 0 T
30.00
Enter Interest 6 ^
6.00
Enter Price 2 5 5 ) P
255,000.00
Down%
5d
5.00
Set Tax%
1·3t
1.30
Set ins.%
· 2 5 s t 0.25
Set MI%
·5s9
0.50
Enter Exp.
60sD
60.00
FindLoan
l
242,250.00
FindP&IPmt.p
1,452.41
TotalPayment p p
1,94272
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Qualifying Loan Amount
· Buyer’s Income:
$100,000
· Monthly Debt:
$550
· Down Payment:
25%
· Property Tax:
1.5%
· Property Insurance:
0.25%
· Mortgage Insurance (not required): 0
· Term:
30 years
· Interest:
6.25%
· Qualifying Ratios:
28% 36%
Find qualifying loan, price and payment:
STEPS
Clear Enter Income
KEYSTROKES
DISPLAY
oo
0.00
100)i
100,000.00
Enter Debt 5 5 0 D Enter %Down 2 5 d
550.00 25.00
Set Tax%
1·5t
1.50
Set ins.%
·25st
0.25
Set MI%
0s9
0.00
Enter Term 3 0 T
30.00
Enter Interest 6 · 2 5 ^
6.25
Enter ratios 2 8 : 3 6 q
28.00 36.00
Find maximum qualifying
amount
q
Find Price
P
7RWDOPaymentpp p
288,008.37 384,011.16
2,333.33
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APR and Total Finance Charges, Including Mortgage Insurance
· Loan: · Term: · Interest: · Cost: · Mortgage Ins./MI:
$250,000 30 years
6.25% 1.5 points + $550
$1,200/year
STEPS
KEYSTROKES
DISPLAY
Clear Enter Loan
Enter Term Enter Interest Find P&I Pmt. Enter MI
oo
0.00
250)l
250,000.00
30T
30.00
6·25^
6.25
p
1,5.
1 2 0 0 s 9 1,200.00
Find Loan Costs:
Recall Loan Find points Add fees and
find total Find APR
®l
250,000.00
x 1 · % = 3,750.00
+ 5 5 0 = 4,300.00
s^
7.03
These results are with the calculator set to U.S. Interest Mode.
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APPENDIX
Default Settings
Your calculator has the following default settings. Performing a Full Reset
(e.g. – turn off calculator, hold down x and turn on) will return your
calculator to the settings below:
· Canadian Interest Mode · 12 Periods per Year · Property Tax/Prop. Insurance
(percent
and dollar values) = Not Permanently Stored/Clears Upon O · (U.S. Only)
Mortgage Ins. (% and $ values) = Not Permanently Stored/Clears Upon Double-
Press of o · Month Offset of January (1) · Amortization Range = Specified Year
(Ent-Ent) · q Ratios = 32%-40% · Q Ratios = 35%-42% · Qualifying Ratios
Displayed 1st · End Mode
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Repair and Return
Return Guidelines
1. Please read the Warranty in this User’s Guide to determine if your
Calculated Industries product remains under warranty before calling or
returning any device for evaluation or repairs.
2. If your product won’t turn on, check the battery as outlined in the User’s
Guide.
3. If you need more assistance, please contact.
4. If you believe you need to return your product, please call a
representative
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Warranty
Warranty Repair Service U.S.A.
CalculatedIndustries(“CI”)warrantsthisproductagainst
defectsinmaterialsandworkmanshipforaperiodofone(1)
yearfromthedateoforiginalconsumerpurchaseintheU.S.If
adefectexistsduringthewarrantyperiod,CIatitsoptionwill
eitherrepair(usingneworremanufacturedparts)orreplace
(withaneworremanufacturedcalculator)theproductatno charge.
THEWARRANTYWILLNOTAPPLYTOTHEPRODUCTIFIT
HASBEENDAMAGEDBYMISUSE,ALTERATION,ACCIDENT,IMPROPERHANDLINGOROPERATION,ORIF
UNAUTHORIZEDREPAIRSAREATTEMPTEDORMADE.
SOMEEXAMPLESOFDAMAGESNOTCOVEREDBYWARRANTYINCLUDE,BUTARENOTLIMITEDTO,BATTERY
LEAKAGE,BENDING,A”BLACKINKSPOT”ORVISIBLE CRACKINGOFTHELCD,WHICHAREPRESUMEDTOBE
DAMAGESRESULTINGFROMMISUSEORABUSE.
ToobtainwarrantyserviceintheU.S.,pleasegotothe web-site.
Arepairedorreplacementproductassumestheremainingwarrantyoftheoriginalproductor90days,whicheverislonger.
Non-WarrantyRepairServiceU.S.A.
Non-warranty repair covers service beyond the warranty peri-od, or service
requested due to damage resulting from misuseorabuse.
Contacttoobtaincurrentproductrepairinformationandcharges.
Repairsareguaranteedfor90days.
RepairServiceOutsideätheäU.S.A.
To obtain warranty or non-warranty repair service for goods purchased outside
the U.S., contact the dealer through which you initially purchased the
product. If you cannot reasonably have the product repaired in your area, you
may contact to obtain current product repair information and charges,
including freight and duties.
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Disclaimer
CI MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WITH
RESPECT TO THE PRODUCT’S QUALITY, PERFORMANCE, MERCHANTABILITY, OR FITNESS FOR
A PARTICULAR PURPOSE. AS A RESULT, THIS PRODUCT, INCLUDING BUT NOT LIMITED TO,
KEYSTROKE PROCEDURES, MATHEMATICAL ACCURACY AND PREPROGRAMMED MATERIAL, IS
SOLD “AS IS,” AND YOU THE PURCHASER ASSUME THE ENTIRE RISK AS TO ITS QUALITY
AND PERFORMANCE. IN NO EVENT WILL CI BE LIABLE FOR DIRECT, INDIRECT, SPECIAL,
INCIDENTAL, OR CONSEQUENTIAL DAMAGES RESULTING FROM ANY DEFECT IN THE PRODUCT
OR ITS DOCUMENTATION. The warranty, disclaimer, and remedies set forth above
are exclusive and replace all others, oral or written, expressed or implied.
No CI dealer, agent, or employee is authorized to make any modification,
extension, or addition to this warranty. Some states do not allow the
exclusion or limitation of implied warranties or liability for incidental or
consequential damages, so the above limitation or exclusion may not apply to
you. This warranty gives you specific rights, and you may also have other
rights, which vary from state to state.
FCC Class B
This equipment has been certified to comply with the limits for a Class B
computing device, pursuant to Subpart J of Part 15 of FCC rules.
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Thisequipmenthasbeencertifiedto complywiththelimitsforaClassB
computingdevice,pursuanttoSubpartJofPart
15ofFCCrules.
Softwarecopyrightedandlicensedto CalculatedIndustries,Inc.by
RealEstateMasterTechnologies,LLC,20. PocketReferenceGuidecopyrightedby
CalculatedIndustries,Inc.©20.
QualifierPlus®andCalculatedIndustries® are registeredtrademarksof
CalculatedIndustries,Inc.
ALLRIGHTSRESERVED
CALCULATEDINDUSTRIES®
DesignedintheUSA PrintedinChina
5
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