Calculated Industries 3416 Reference Guide
Pocket Reference Guide
Residential Mortgage Finance Calculator
M
ORTGAGE
Q
UALIFIER PLUS
®
Model 3416
The
MORTGAGE QUALIFIER PLUS
lets you
pre-qualify clients and calculate financial
problems with ease!
Quickly Solve:
• Time-Value-of-Money (TVM) Problems:
Find Loan Amount, Term, Interest,
Payment, Future Value
• Restricted/Unrestricted Qualifying
• Required Income/Debt
• Property Tax and Insurance, Mortgage
Insurance
• P&I and PITI payment
• Sales Price, Down Payment, and LTV
• Adjustable-Rate Mortgages
• Amortization and Remaining Balance
• Bi-Weekly Loans
• Date Math Problems
• Combo loans (80:10:10, 80:20)
• APR, including Mortgage Insurance
• Income Tax Savings and Rent vs. Buy
• Month Offset, Prepaid Interest
New!
• Interest-Only Payments
• Interest-Only Loan Qualifying
• Interest-Only (2nd TD) Combo Loans
MORTGAGE QUALIFIER PLUS
®
KEY DEFINITIONS .................................1
EXAMPLES.............................................6
Monthly Mortgage (P&I) Payment.......6
Interest-Only Payment
(Calculation)......................................6
Interest-Only Payment (Entry).............7
Term of a Loan....................................7
Interest Rate........................................8
Loan Amount.......................................8
Loan Amount Based on Sales Price
and Down Payment...........................9
Date Example......................................9
Setting Tax and Insurance.................10
PITI Payment, Total Payment and
Interest-Only Payment ....................10
Quarterly Payment ............................12
Estimated Tax Savings......................13
Rent vs. Buy ......................................14
ARM Payment —
Lifetime Cap
.........15
Amortization ......................................17
APR and Total Finance Charges,
Including Mortgage Insurance.........18
Appreciation ......................................19
Bi-Weekly Loans ...............................20
Setting Qualifying Ratios ...................21
Qualifying Loan Amount ....................22
“Restricted” vs. “Unrestricted”
Qualifying ........................................24
TABLE OF CONTENTS
Qualifying Loan Amount
(Interest-Only Loan)........................26
Income Required and Allowable
Monthly Debt...................................27
80:10:10 Combo Loan vs. Fixed-Rate
Loan with Mortgage Insurance........28
80:20 Interest-Only Combo Loan......32
APPENDIX............................................34
Default Settings.................................34
Decimal Place Setting.......................35
Preference Settings...........................35
Batteries ............................................36
Reset.................................................36
POCKET REFERENCE GUIDE — 1
Note
: This is a short “reference” guide. Please
see your large User’s Guide for detailed definitions and examples.
: Colon separator
(used for
date, ARM adjustment,
qualifying ratios and
combo loans)
b Backspace key; for back-
ing up/deleting wrong entry
® Recalls or re-displays a
value when followed by a
chosen key
(e.g.,
® ˆ
will display current interest
value)
µ Memory Function:
– µ Adds value on display to Memory
– s µ Subtracts value
on display from Memory
– ® µ Recalls Memory
Total
– ® ® Recalls and
clears Memory Total
KEY DEFINITIONS
POCKET REFERENCE GUIDE — 2
s Sets number of displayed
decimal places and activates 2nd functions
s – Change sign
s x Clear All
(Note: perform
with caution as it will
clear/reset stored values)
s = Preference mode
(see
Large User’s Guide for
details)
s ÷ Payments per year
(Default 12, for monthly)
s b Periodic
(identifies entry as
periodic rather than yearly)
s ) Month offset
s : Odd-days interest
s + Tax bracket %
s p Interest-Only Payment
entry/display
s P Rent vs. buy
l Loan amount
p P&I, PITI, total payment,
and interest-only payment
POCKET REFERENCE GUIDE — 3
T Number of years
ˆ Annual interest rate
s l Future value
s ˆ APR
(annual percentage
rate)
, including mortgage
insurance, if entered
P Home’s sales price
d Down payment
s T Bi-Weekly loan
a Amortization function
s a Remaining balance
A Adjustable-rate mortgage
s A ARM decreasing interest
% adjustment
s % ARM lifetime interest cap%
q Qualify based on
28%-36%
Q Qualify based on
31%-43%
i Annual income
D Long-term,
monthly
debt
(e.g., car payment)
POCKET REFERENCE GUIDE — 4
t Property tax
(enter as per-
cent or dollar amount)
s t Estimated tax savings/after
tax payment
I Property/homeowner’s
insurance
(enter as per-
cent or dollar amount)
s I Mortgage insurance
(enter
as percent or dollar amount)
e Monthly expenses
(such as
homeowner’s association
dues)
s d For entering
(or finding)
Loan-to-Value ratio and
computing respective
Down Payment and/or
Loan Amount
! Used to enter 1st
TD
interest:term for Combo
Loans
s ! Used to enter 2nd
TD
interest:term for Combo
Loans
POCKET REFERENCE GUIDE — 5
* Combo loan function for an
80:10:10 LTV loan*; calculates 1st/2nd TD values
and compares them to
entered fixed-rate loan
w/mortgage insurance
*You may enter any LTV
prior to pressing this key
(e.g., LTV of 90:5, enter
9
0 : 5 *
)
s * Interest-only 2nd TD combo
loan; operates similarly to
* function
POCKET REFERENCE GUIDE — 6
Monthly Mortgage (P&I) Payment
Find the monthly (P&I) payment on a 30year, fixed-rate loan of $265,000 at 6.75%
annual interest:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 2 6 5 ) l
265,000.00
Enter term 3 0 T 30.00
Enter interest 6 • 7 5 ˆ 6.75
Find payment p 1,718.78
Interest – Only Payment (Calculation)
Find the interest-only payment on a loan
of $15,000 at 9% interest.
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter Loan 1 5 ) l 15,000.00
Enter Interest 9 ˆ 7.00
Find payment s p 112.50
EXAMPLES
POCKET REFERENCE GUIDE — 7
Interest – Only Payment (Entry)
How much can you borrow if the interest
rate is 7% on a 30-year interest–only
mortgage and you can afford to pay
$1,000 each month?
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter Interest 7 ˆ 7.00
Enter Payment 1 ) s p 1000.00
Find Loan l 171,428.57
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 KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 1 5 ) l 15,000.00
Enter interest 1 0 ˆ 10.00
Enter payment
2 0 0 p 200.00
Find term/years
T 9.85
Number of
months T 118.19
POCKET REFERENCE GUIDE — 8
Interest Rate
Find the interest rate on a mortgage if the
loan amount is $98,500, term is 30 years
and payment is $1,150 a month:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 9 8 5 0 0 l
98,500.00
Enter term 3 0 T 30.00
Enter payment
1 1 5 0 p 1,150.00
Find annual
interest ˆ 13.78
Find periodic
interest ˆ 1.15
Loan Amount
Approximately how much can you borrow
if the interest rate is 6.5% on a 30-year
loan and you can afford $1,500 in monthly payments? What if the interest rate is
lowered to 6%?
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter interest 6 • 5 ˆ 6.50
Enter term 3 0 T 30.00
Enter payment
1 5 0 0 p 1,500.00
Find loan l 237,316.23
POCKET REFERENCE GUIDE — 9
Enter new interest
rate 6 ˆ 6.00
Find new loan
amount l 250,187.42
Loan Amount Based on Sales Price
and Down Payment
Find both $ down payment and loan
amount if the sales price is $375,500 and
you're planning to put 20% down:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter price 3 7 5 5 0 0 P
375,500.00
Enter down% 2 0 d* 20.00
Find down$ d 75,100.00
Find loan l 300,400.00
*You do not have to label the value as a percent.
Date Example
If a 45-day escrow begins June 15 2004,
what is the closing date and day?
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter month 6 : 6-
Enter day 1 5 : 6-15-
Enter year 0 4 6-15-04
Add 45 days + 4 5 = FRI 07-30-04
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