Calculated industries 3416 User Manual

USER’S GUIDE

Residential Mortgage Finance Calculator

ORTGAGE

UALIFIER

LUS

Model 3416

The

ORTGAGEQUALIFIERPLUS

was custom-designed for mortgage lenders and 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

com-

plete

and

easy-to-use

real estate finance calculator on the market!

New Features!

• Interest-Only Payments

• Interest-Only Loan Qualifying

• Interest-Only (2nd TD) Combo Loans

Additional 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)

• Instant P&I, PITI and Total Payment

• Expanded Tax and Insurance Capabilities

• Built-in Sales Price and Down Payment

• Works in Annual or Periodic 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)

• APR and Total Finance Charges (including Mortgage Insurance)

• Bi-Weekly Loans

• Trust Deeds (Investments)

•

Date Math Solutions; also works as a Standard Math Calculator

• 1st and 2nd Trust Deeds (80:10:10, 80:20) or Combo Loans

• Income Tax Savings, Mortgage Interest Deduction

• Loan-to-Value (LTV)

• Odd-Days Interest (ODI) and Month Offset

• Rent vs. Buy

Introducing the M

ORTGAGEQUALIFIERPLUS

Mortgage Loan Calculator

GETTING STARTED..........................................................................1

KEY DEFINITIONS.........................................................................1

Basic Operation Keys ..................................................................1

Mortgage Loan (TVM) Keys.........................................................2

Tax, Insurance and Expense Keys ..............................................6

Tax Savings Function ...................................................................7

Rent vs. Buy Keys .......................................................................7

Qualifying Keys............................................................................8

1st and 2nd Trust Deeds (Combo Loan) Keys...........................11

BASIC ARITHMETIC EXAMPLES...............................................13

Arithmetic...................................................................................13

Percentage Calculations............................................................13

Figuring Straight % Commission ...............................................13

Reduction in Listing Price (Discount %) ....................................14

Simple, One-Year Home Appreciation (Add-on %)....................14

Date Examples...........................................................................15

CALCULATOR SETTINGS...........................................................16

Decimal Place Selection............................................................16

Preference Settings ...................................................................17

MEMORY......................................................................................19

Accumulative Memory................................................................19

Memory Storage Keys (M0-M6).................................................20

Additional Memory Storage Keys ..............................................21

EXAMPLES ......................................................................................22

MORTGAGE LOANS/TIME-VALUE-OF-MONEY (TVM) .............22

Finding the Monthly Mortgage (P&I) Payment...........................23

Interest-Only Payment (Calculation)..........................................23

Interest-Only Payment (Entry) ...................................................23

Finding the Interest Rate ...........................................................24

Finding the Term of a Loan........................................................24

Finding the Loan Amount...........................................................24

Paying Off a Mortgage Early (Making Larger Payments) ..........25

Simple Interest vs. Compound Interest......................................25

Future Value...............................................................................26

Appreciation...............................................................................26

Non-Monthly Loans....................................................................27

Finding a Quarterly Payment.....................................................27

Sales Price/Down Payment .......................................................28

TABLE OF CONTENTS

Finding Loan Amount Based on Sales Price and Down

Payment..................................................................................28

Taxes and Insurance ..................................................................29

Setting Tax and Insurance % Rates...........................................30

Recalling Tax and Insurance % Rates.......................................30

Setting Tax and Insurance $......................................................30

Calculating Tax and Insurance % or $.......................................31

PITI Payment (Tax and Insurance Entered as %).....................32

Total Payment (Including Expenses) and Interest-Only

Payment..................................................................................32

Estimated Income Tax Savings and “After-Tax” Payment .........33

Rent vs. Buy...............................................................................34

Adjustable Rate Mortgages........................................................35

ARM Payment —

Worst-Case Scenario

....................................36

ARM Payment —

Using Lifetime Cap

.......................................37

Decreasing ARM Payment.........................................................38

Increasing and Decreasing ARM Payment ................................38

Amortization and Remaining Balance........................................39

Notes on Amortization................................................................39

Total Principal and Interest for a 30-Year Loan .........................40

Amortization List for Individual Year(s) —

Using “Next” Feature

..............................................................41

Amortization List for Individual Year(s) —

Using Month Offset

.................................................................42

Amortization List for Individual Payment(s) ...............................43

Amortization List for a Range of Payments or Years .................44

APR and Total Finance Charges ...............................................45

Finding APR, Total Finance Charges

(Excluding Mortgage Insurance).............................................45

Prepaid/Odd-Days Interest and APR.........................................46

Balloon Payment/Remaining Balance Needed to Pay Off

a Loan .....................................................................................47

Bi-Weekly Loans........................................................................47

Bi-Weekly Term Reduction and Payment..................................48

Trust Deeds and Discounted Notes ...........................................48

Purchase Price of a Note —

Fully Amortized

............................49

Finding the Yield on a Discounted Note....................................49

Finding the Value and Discount of a Trust Deed.......................50

BUYER QUALIFYING...................................................................51

QUALIFYING EXAMPLES ...........................................................53

Recalling Income/Debt Qualifying Ratios ..................................53

Storing New Income/Debt Qualifying Ratios..............................53

Finding Qualifying Loan Amount and Sales Price (Simple

Example Excluding Tax/Insurance).........................................54

Qualifying Loan Amount and Sales Price (Complete Example

Including Down Payment, Tax/Insurance, Monthly Association

Dues) ......................................................................................55

“Restricted” Qualifying ...............................................................56

“Unrestricted” Qualifying............................................................56

Qualifying Comparison (Comparing 2 Different Loans or Ratios

at Once)..................................................................................57

Qualifying Loan Amount (Interest-Only Loan)............................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 (Int-Only 2nd) vs. Fixed-Rate Loan with Mortgage

Insurance................................................................................64

Combo Loan —

Entering a New LTV

........................................66

Financed Mortgage Insurance Compared to a Combo Loan....68

APPENDIX .......................................................................................70

Default Settings..........................................................................70

Reset ..........................................................................................70

Error Codes................................................................................70

Auto Shut-Off.............................................................................71

Batteries.....................................................................................71

Repair and Return......................................................................71

Warranty.....................................................................................72

Legal Notes................................................................................73

Looking For New Ideas..............................................................73

INDEX .............................................................................................73

SER’SGUIDE

— 1

KEY DEFINITIONS

Basic Operation Keys

O Turns all power off. The memory and most financial

registers are cleared.

o If 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). b Backspace key (deletes incorrect entries one digit at

a time).

• Decimal point.

Percent

— Four-function (+, –, x, ÷) percent key.

See Basic Arithmetic Examples for examples.

Memory

— 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 Memory Section for details.

Recall

— Recalls and displays the stored values in most keys/functions, such as the TVM keys, payments per year, etc. (e.g., ® ˆ). Also used for Memory functions.

s Works 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).

GETTING STARTED

2 — M

ORTGAGEQUALIFIERPLUS

s –

Change Sign (+/–)

— Changes the sign of the dis-

played value from positive to negative or vice versa.

s x

Clear All

— Clears all entered values and returns any stored values to their default settings. Use this only with caution, as it will reset ratios, Periods per Year, etc. back to their defaults (see the Appendix for a list of these settings).

Note: Clear All will not affect any changes made to Preference Settings (with the exception of Payments/Year and Decimal Places, which are returned to their defaults), unless you perform a Reset (see Appendix).

s =

Preferences (Prefs)

— Activates the Preference

Mode, where you can select custom settings (see

Preference Settings).

Mortgage Loan (TVM) Keys

The following keys let you solve Time-Value-of-Money (TVM) problems, such as finding a Loan Payment, Term, Interest or Future Value, Amortization or Bi-Weekly loans. Other useful keys, such as Price and Down Payment, are also included. These mortgage loan keys let you easily demonstrate various “what if” loan scenarios to your clients.

Loan Amount

— Enters or solves for the initial loan

amount or present value of a financial problem.

P&I, PITI Payment, Total Payment, Interest-Only Payment

— Enters or solves for the periodic principal and interest (P&I) payment. Pressing p a second time in succession calculates the PITI payment (P&I plus property tax, property insurance and mortgage insurance, if entered). The third press of p computes the total payment (PITI plus any entered expenses, such as homeowner’s association dues and other housing expenses). The fourth press calculates the interest-only payment.

s p

Interest-Only Payment (Int-Only Pmt)

— Enters or

solves for the interest-only payment.

T Enters or solves for the number of years. Second

press displays the number of periods. You may enter a periodic term, if you prefer, by pressing the

s b

(periodic)

keys (e.g., 3 6 0 s b T instead of 3 0 T). An entered term greater than 45 will be classified as periodic, not annual.

Note: Stored permanently, until you change it or perform a Clear All (

s x

SER’SGUIDE

— 3

Interest

— 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.

Sales Price

— Enters or calculates Sales Price based on the entries of Loan Amount (or equivalent mortgage components) and Down Payment.

Down Payment

— Enters (in either percent or dollars) or calculates Down Payment, based on the entries of Loan Amount (or equivalent mortgage components) and Sales Price. Asecond 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 initiation. It also calculates total finance charges, monthly mortgage insurance, and PIMI payment, based on the entry of mortgage insurance via the s I keys.

s b

Periodic

— Used to specify a mortgage component (Term or Interest), Income, or Amortization/Remaining Balance value as per period rather than

per year

. For example, 3 6 0 s b T enters 360 periods, or months.

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ORTGAGEQUALIFIERPLUS

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).

Amortization (Amort)

— Finds total interest, principal, remaining balance, remaining term and estimated 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 deduction — it does not include property tax. See Tax Savings Function for income tax savings including property tax and mortgage interest.

s a

Remaining Balance (Bal)

— Displays the remaining 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 description).

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 interest, 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.

SER’SGUIDE

— 5

Adjustable Rate Mortgage

— Calculates the payment 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 realize significant interest savings. After loan variables are entered, pressing s T displays the reduction in term. The second press of T shows 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 interest paid. Pressing p will 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.

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ORTGAGEQUALIFIERPLUS

Tax, Insurance and Expense Keys

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):

Property 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 t converts to the monthly tax amount, and pressing t again converts to the annual percentage rate. If entered as a percentage, pressing ® t converts to the annual dollar amount, and pressing t once 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).

Property 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 converts to the monthly insurance amount or premium, and pressing I again converts to the annual percentage 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 calculating 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 pressing I again converts to the annual percentage rate. If entered as a percentage, pressing ® s 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. Mortgage insurance is calculated from the loan amount.

SER’SGUIDE

— 7

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.

Expense

— For Total Payment and Qualifying. Enters monthly housing expense (e.g., homeowner’s association dues, maintenance and utilities).

Tax Savings Function

s t

Estimated Income Tax Savings (Tax Svgs)

— Calculates an estimated annual income tax savings for a mortgage, based on entered loan variables, including property tax, mortgage interest, and tax bracket. You may use the default Tax Bracket % (default: 21%), or enter a new tax bracket prior to pressing s t t to display the estimated annual income tax savings; the third consecutive press of t will display the monthly tax savings; and the fourth press will display the estimated “aftertax”, or net mortgage payment. An entered Tax Bracket % is stored permanently.

Note: This function is different from the mortgage interest deduction 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 akey definition in the “Mortgage Loan Keys” section for details).

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 variables and a tax bracket via s +, then enter the prospective buyer’s current rent and press s P. Consecutive presses of P 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%)

— Permanently 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 = 21%)

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ORTGAGEQUALIFIERPLUS

Qualifying Keys

(Qualify Based on 28%-36%)

— Amulti-function

key which, based on entered variables, performs the following pre-qualifying functions:

1) Stores income and debt ratios for loan qualifying. 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 percentage 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 conservative rule is that total housing expenses should be 28% or less of income, while total housing expense plus monthly debt should be 36% or less of income.

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.

(Cont’d)

SER’SGUIDE

— 9

(Cont’d)

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—

• Annual Property Tax 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

*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, is the higher 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 indicate 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.

(Cont’d)

10 — M

ORTGAGEQUALIFIERPLUS

(Cont’d)

3) Calculates the annual income (“Stated 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 q displays the stored qualifying ratios and the second press calculates the buyer's actual ratios.

Qualify Based on 31%-43%

— Stores additional Income and Debt ratios (e.g., FHA/VA) and operates identically to the q key. Default Income and Debt ratios for this key are 31% and 43%, respectively.

Note: You can store whatever ratios you desire in the qor

keys.

s q

Interest-Only Qualifying Based on 28%-36%

— Keys used for interest-only Qualifying; operate identically to the q and Q keys.

s Q

Interest-Only Qualifying Based on 31%-43%

— Operates identically as s q, but uses default Income and Debt ratios 31%-43%.

Income

— 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).

D Enters buyer’s long-term,

monthly

debt (e.g., car payments, credit cards with large balances/longterm monthly payments).

SER’SGUIDE

— 11

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 standard l, p, ˆ and/or T keys 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 outputs*) 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 *

Interest-Only Combo Loan (Int-Only 2nd)

— Operates similarly to the 80:10:10 Combo Loan, but for an 80:10:10 Combo Loan where the 2nd Trust Deed is Interest-Only (the 1st Trust Deed is a standard fixed-rate P&I loan).

Note: You may also enter any LTV for either *or

s *

For example, to enter an 80:20 LTV, enter

8 0 : 2 0 *

8 0 : 2 0 s *

and continue to press the *key to

find the below values.

(Cont’d)

12 — M

ORTGAGEQUALIFIERPLUS

(Cont’d)

** and s * (Int-Only 2nd) Key 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: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 Adjusted 2nd Term (if Savings Applied to

2nd TD) 7 1st Trust Deed Loan Amount 8 2nd Trust Deed Loan Amount 9 1st Trust Deed Payment 10 2nd Trust 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. Values will be retained until changed or reset.

SER’SGUIDE

— 13

BASIC ARITHMETIC EXAMPLES

Arithmetic

This calculator uses standard chaining logic, which simply means that you enter your first value, the operator (+, –, x, ÷), the second 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 KEYSTROKES DISPLAY

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 broker? What is the listing agent’s share of this commission?

STEPS KEYSTROKES DISPLAY

Multiply by 50 percent x 5 0 % = 3,894.75

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ORTGAGEQUALIFIERPLUS

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 KEYSTROKES DISPLAY

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 KEYSTROKES DISPLAY

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 Future Value or Appreciation section for more examples.

SER’SGUIDE

— 15

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 example, if a 45-day escrow begins April 26, 2004, what is the closing date and day?

STEPS KEYSTROKES DISPLAY

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 KEYSTROKES DISPLAY

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

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ORTGAGEQUALIFIERPLUS

CALCULATOR SETTINGS

Decimal Place Selection

With the s key, you have the option of selecting the number of decimal places you’d like to display. The values are rounded using conventional 5/4 rounding. You can do this prior to finding an answer or afterwards.

Press s followed by 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: This setting will remain until you perform a Clear All (

s x

), perform a Full Reset* (press O, hold down x, and press o), or until you change it using the commands above.

*Depressing the Reset located left of the Okey will also perform a Full Reset.

SER’SGUIDE

— 17

Preference Settings

Your calculator has a Preference Mode, which allows you to program the calculator to various settings. For example, it lets you store certain values permanently, display certain values, or show values in a specific order.

To access the Preference Mode, press s, then =, then keep pressing = to toggle through the settings listed below. Press the + key to advance through the sub-settings. Use the – key to back up within the sub-settings.

To return the calculator to its default, or factory-set, Preference Settings, perform a total Reset (see Reset section for details).

After s, Keep

Description

Pressing (Press +to Advance

Display

within each category, –to Back up):

1 Decimal Places

- DEC HOLd EntrY — Permanently sets number of decimal places.

(Default)

- DEC OFF 0.00 — Clears decimal place setting/resets to 0.00 at O.

2 Payments Per Year

- P/Y OFF 12.00 ANN— Resets to 12.00 at O.

(Default)

- P/Y Hold Entry ANN—Permanently sets pmts/year.

3 Property Tax/Insurance (T/I)

- Clr OFF TAX INS — Clears all T/I (% and $) values at O.

(Default)

- Hold Pct. TAX INS — Holds only T/I percent (%) entries at O.

- Hold All TAX INS — Holds all T/I (% and $) values at O.

- Clr-Clr TAX INS — Clears all T/I (% and $) values at double press of o (or o o).

(Cont’d)

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ORTGAGEQUALIFIERPLUS

(Cont’d)

After s, Keep

Description

Pressing (Press +to Advance

Display

within each category, –to Back up):

4 Mortgage 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.

5 Amortization/Single Entries

- AMRT Ent-Ent — Displays amortization for specified year only —

e.g., enter

5 a

shows payments 49-60. (Default)

- AMRT 1-Ent — Displays amortization from beginning to specified year —

e.g., enter

shows payments 1-60.

6 Display Qualifying Ratios

- Q-R PRESS 1 — Displays ratio at beginning of sequence.

(Default)

- Q-R AT END — Displays ratio at end of sequence.

SER’SGUIDE

— 19

MEMORY

Accumulative Memory

Whenever the µ key is pressed, the displayed value will be added to cumulative memory. This value will remain in Memory until cleared or when the calculator is turned off.

Other Memory functions:

FUNCTION KEYSTROKES

Recall total in Memory ® µ 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 KEYSTROKES DISPLAY

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

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ORTGAGEQUALIFIERPLUS

Memory Storage Keys (M0-M6)

In addition to the standard cumulative Memory (as described above), your calculator has six independent Storage Registers — [M0] through [M6] — that can be used to permanently store

single

, noncumulative 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

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