Calculated Industries 3420 User Manual

ANADIAN

UALIFIER

PROFESSIOINAL RESIDENTIAL REAL ESTATE FINANCE CALCULATOR

with BUILT-IN CANADIAN INTEREST MODE

Model 3420

LUS

III

User’s Guide

SER’SGUIDE

— 1

The

Canadian Qualifier Plus IIIx

was designed specifically for mortgage lenders, residential real estate agents and brokers for quick mortgage calculations in the office or out in the field. It’s the most complete and intuitive calculator of its kind. With the push of a few buttons,

it will instantly pre-qualify prospective buyers, find monthly

payments, and solve hundreds of mortgage problems! Features:

• Easy and Complete Buyer Pre-Qualifying — with

“Smart”

Keys

for quick financing solutions or comparisons

• Find Qualifying Mortgage Amount, Income Required and Maximum Allowable Debt

• Use two different Qualifying Ratios at once to compare mortgage scenarios

• Compare “Restricted” with “Unrestricted” Qualifying Mortgage Amount

• Flexible “what-if” Mortgage or TVM Calculations —

Finds

Mortgage Amount, Term, Interest or Payment

• Instant P&I and PITH Payment

• Includes Property Tax and Heating Expense

• Built-in Sales Price and Down Payment

• Instant Loan-to-Value (LTV)

• Works in Annual Term and Interest

• Works in Canadian or U.S. Interest

• Date Math, Month Offset, and Odd-Days Interest (ODI)

• Complete Amortization

• Remaining Balance/Balloon Payment

• Bi-Weekly Mortgages

• Trust Deeds

• Future Value and Appreciation

• Also works as a Standard Math Calculator

•

U.S. Mode, including additional features:

Adjustable Rate Mortgages (ARMs), APR and Total Finance Charges, PITI/Total Payment, Rent vs. Buy, Estimated Income Tax Deduction and Complete U.S. Buyer Pre-Qualifying, including Tax and Insurance

Introducing the C

ANADIANQUALIFIERPLUS

III

Mortgage Calculator

2 — Q

UALIFIERPLUS

III

GETTING STARTED ..........................................................................6

KEY DEFINITIONS .........................................................................6

Basic Operation Keys ..................................................................6

Mortgage/Time-Value-of-Money Keys..........................................7

Qualifying Keys..........................................................................10

U.S. Keys (Used in U.S. Mode).................................................13

CALCULATOR SETTINGS ...........................................................15

Decimal Place Selection............................................................15

Canadian/U.S. Mode..................................................................16

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

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

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

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

BASIC ARITHMETIC EXAMPLES................................................22

Arithmetic...................................................................................22

Percentage Calculations............................................................22

Percent Change.........................................................................22

Figuring Straight % Commission ...............................................23

Reduction in Listing Price (Discount %) ....................................23

Simple, One-Year Home Appreciation (Add-on %) ....................23

USING THE DATE FUNCTION.....................................................24

EXAMPLES —

CANADIAN MODE

.................................................25

MORTGAGE/TIME-VALUE-OF-MONEY (TVM)............................25

Finding the Monthly Mortgage Payment....................................26

Finding the Term of a Mortgage .................................................26

Paying Off a Mortgage Early (Making Larger Payments) ..........27

Finding the Interest Rate ...........................................................27

Finding the Interest-Only Payment............................................27

Finding the Mortgage Amount....................................................28

Non-Monthly Loans....................................................................28

Finding a Quarterly Payment.....................................................29

Bi-Weekly Loans........................................................................29

Bi-Weekly Term Reduction and Payment ..................................30

Sales Price/Down Payment .......................................................30

Finding Mortgage Amount Based on Sales Price and

Down Payment .......................................................................31

Finding Sales Price and Payment Based on Loan Amount and

Down Payment .......................................................................31

Finding Loan-to-Value (LTV) Based on Down Payment and

Sales Price..............................................................................31

Setting Property Tax % Rate......................................................32

TABLE OF CONTENTS

SER’SGUIDE

— 3

Setting Property Tax $................................................................32

PITH Payment (Including Heating Expense).............................32

PITH Payment (Including Heating Expense and Property Tax

Entered as %).........................................................................33

PITH Payment (Including Heating Expense and Property Tax

Entered as $)..........................................................................34

PITH Payment and Interest-Only Payment................................34

Amortization and Remaining Balance........................................35

Notes on Amortization................................................................35

Total Principal and Interest for a 25-Year Mortgage..................36

Amortization List for Individual Year(s) —

Using “Next”

Feature

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

Amortization List for Individual Year(s) —

Using Month

Offset

......................................................................................38

Amortization List for Individual Payment(s) ...............................39

Amortization List for a Range of Payments or Years.................40

Balloon Payment/Remaining Balance Needed to Pay Off a

Mortgage.................................................................................40

Future Value...............................................................................41

Appreciation/Future Value..........................................................41

Basic Savings Account Problem (Future Value of an Initial

Deposit)...................................................................................41

Trust Deeds and Discounted Notes ...........................................42

Purchase Price of a Note —

Fully Amortized

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

Finding the Yield on a Discounted Note....................................43

BUYER PRE-QUALIFYING...........................................................44

IMPORTANT NOTE: U.S. vs. Canadian Payment and

Qualifying Calculations...........................................................45

QUALIFYING EXAMPLES............................................................46

Recalling GDS/TDS Qualifying Ratios.......................................46

Storing New GDS/TDS Qualifying Ratios..................................46

Finding Qualifying Mortgage Amount and Sales Price

(Simple Example Excluding Property Tax) .............................47

Qualifying Mortgage Amount and Sales Price

(Including Down Payment, Property Tax and Monthly

Heating/Condo Fees)..............................................................48

“Restricted” Qualifying ...............................................................49

“Unrestricted” Qualifying............................................................50

Qualifying Comparison (Comparing Two Different Mortgages or

Qualifying Ratios at Once)......................................................51

Finding Income Required and Allowable Monthly Debt.............52

Solving for Actual Qualifying Ratios...........................................53

4 — Q

UALIFIERPLUS

III

EXAMPLES —

U.S. MODE

.............................................................54

Finding the Monthly Loan Payment (Based on U.S. Interest

Rate).......................................................................................54

Property Taxes, Property/Hazard Insurance and Monthly

Housing Expense....................................................................55

PITI Payment (Tax and Insurance Entered as %) .....................56

PITI Payment (Tax and Insurance Entered as $) ......................56

Calculating Tax and Insurance % or $.......................................57

Finding the Interest Rate ...........................................................58

Finding the Term of a Loan........................................................58

Finding the Loan Amount...........................................................58

Finding Sales Price and Payment Based on Loan Amount and

Down Payment .......................................................................59

Adjustable Rate Mortgages........................................................59

ARM Payment —

Worst-Case Scenario

....................................60

ARM Payment —

Using Lifetime Cap

.......................................61

Increasing and Decreasing ARM Payment ................................62

Total Principal and Interest for a 30-Year Loan.........................62

Amortization List for Individual Year(s) —

Using “Next”

Feature

....................................................................................63

APR, Total Finance Charges (Including Mortgage

Insurance)...............................................................................64

Bi-Weekly Loans........................................................................65

Bi-Weekly Term Reduction and Payment ..................................65

Estimated Income Tax Savings and “After-Tax” Payment .........66

Mortgage Interest Tax Deduction —

28% or 30% Tax

Bracket

....................................................................................67

Rent vs. Buy...............................................................................68

Qualifying Loan Amount and Sales Price (Complete Example

Including Down Payment, Tax/Insurance, Monthly Association

Dues) ......................................................................................69

“Restricted” Qualifying ...............................................................70

“Unrestricted” Qualifying............................................................71

Finding Income Required and Allowable Monthly Debt.............72

Qualifying Comparison (Comparing Two Different Loans or

Qualifying Ratios at Once)......................................................73

APPENDIX .......................................................................................74

Default Settings..........................................................................74

Reset ..........................................................................................74

Error Codes................................................................................75

Auto Shut-Off.............................................................................75

Batteries.....................................................................................75

Repair and Return......................................................................76

SER’SGUIDE

— 5

Warranty.....................................................................................77

Legal Notes................................................................................78

Looking For New Ideas..............................................................78

INDEX .............................................................................................79

6 — Q

UALIFIERPLUS

III

KEY DEFINITIONS

Basic Operation Keys

O Turns all power off. The memory and most financial

registers are cleared.

o If calculator is off, turns power on. If calculator is on,

a single press clears the last entry while a second press in succession clears non-permanent entries.

+ – x Arithmetic operation keys.

÷ =

0 – 9 Keys used for entering 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 page 22 for examples.

Memory

— Adds the displayed number to the inde-

pendent cumulative memory. Pressing s µ

(M–)

will subtract the displayed value from the cumulative memory. Pressing ® µ recalls and displays the memory contents. Pressing ® ® clears the memory. See page 19 for details.

Recall

— Recalls and displays the contents of the financial registers (e.g., ® ˆ). Also used for Memory functions.

s Used to set the number of displayed decimal places

(see section on Decimal Place Selection, page 15). Also works with other keys to set or activate additional functions. (Think of it as a “shift” key on a typewriter.) It will perform the function printed above the key on the calculator's face.

s –

Change Sign

— Changes the sign of the displayed

value from positive to negative or vice versa.

GETTING STARTED

SER’SGUIDE

— 7

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 page 74).

Canadian Mode: s x will also return your calcu- lator to Canadian Mode if you previously activated U.S. Mode via s 9.

s =

Preferences

— Activates the Preference Mode, where

you can program custom settings (see page 17).

Mortgage/Time-Value-of-Money Keys

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

Mortgage Amount

— Enters or solves for the initial mortgage amount or present value of a financial problem.

P&I, PITH (Total Payment), and Interest-Only Payment

— Multi-function payment key. Enters or solves for the Periodic Principal and Interest (P&I) payment.

(Optional)

Pressing a second time in suc-

cession calculates the PITI* payment

(adds monthly

property tax only to P&I payment)

. Pressing a third time calculates the PITH* or Total Payment, which includes monthly property tax, heating expense, and other applicable housing expenses, such as condo fees. The last press calculates the interest-only payment.

*Note: The U.S. PITI payment includes monthly property tax and insurance. Also, the U.S. function does not require entering monthly heating expense, or use the term PITH.

8 — Q

UALIFIERPLUS

III

T Enters or solves for the number of years. Second

press gives the number of periods. 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

). You may enter a periodic term, if you prefer, by

pressing the πkey prior to pressing T(e.g.,

3 0 0 π

instead of

2 5 T

Interest

— Enters or solves for the annual interest

rate. Second press gives the periodic rate.

Note: Stored permanently, until you change it.

s l

Future Value

— Enters or solves for the future

value of a financial problem.

Sales Price

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

Note: An entered Sales Price will not normally change.

Down Payment

— Enters (in either percent or dollars) or calculates Down Payment, based on the entries of Mortgage 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-toValue percent when a Down Payment and Sales Price, Mortgage Amount/Down Payment, or Mortgage Amount/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 Mortgage Amount).

Periodic

— Used to specify a mortgage component (Term or Interest) or Amortization/Remaining Balance value as periodic rather than yearly. For example, 3 0 0 π T enters 300 periods. Also used to identify Periodic Income, Tax Insurance, and Mortgage Insurance.

SER’SGUIDE

— 9

s ÷

Payments per Year

— 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 17).

Amortization (Amort)

— Finds Total Interest, Principal, Remaining Balance, Remaining Term and (when in

U.S. Mode

only) 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 (U.S. Mode) 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

3 0 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” function/keys.

s a

Remaining Bal (Bal)

— Displays the Remaining Balance when preceded by a single year or range of years (or individual payment or range of payments by also using the π key). Note that you can also see the Remaining Balance by cycling through the

a key.

Colon Separator (Date)

— Used as a separator for entering dates, qualifying ratios, for entering amortization ranges and ARM interest/term adjustments.

s )

Month Offset (Mo Offset)

— Used to set the first

month of payment if other than January.

10 — Q

UALIFIERPLUS

III

s :

Odd-Days Interest

— Calculates the pre-paid interest, or simple interest accumulated (based on a 360-day year) during the days before the first mortgage payment is made, using the interest rate stored in the Interest register.

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 exit BiWeekly mode and re-calculate to the original term, or pressing o twice will exit Bi-Weekly mode.

Qualifying Keys What are Canadian Qualifying Ratios?

According to the Canadian Mortgage and Housing Corp. (CMHC), the first rule in Canadian qualifying is that monthly housing costs should not exceed 32% of gross monthly income (this is called the Gross Debt Service, or GDS ratio). Housing costs include monthly Principal and Interest, Property Taxes and heating expenses. If applicable, PITH can also include half the condominium fees and the annual site lease if it’s a leasehold tenure.

The second qualifying rule is that the total monthly costs (i.e., monthly housing costs

plus

other long-term debt, such as car loans and credit card payments) shouldn’t exceed 40% of gross monthly income (this is called the Total Debt Service, or TDS ratio).

(Qualify Based on GDS:TDS ratios of 32%-40%)

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

(Cont’d)

SER’SGUIDE

— 11

(Cont’d)

1) Stores Canadian GDS:TDS ratios for mortgage qualifying. Entered ratios are separated by the Colon : key. For example, income and debt ratios of 32% and 40%, respectively, are entered and permanently stored as follows: 3 2 : 4 0 q. Default income and debt ratios for this key are 32% and 40%, respectively. You may change these ratios, if desired.

2) Calculates the maximum mortgage 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

• Down Payment

• Monthly Property Taxes

• Monthly heating expense and other monthly housing expenses, if applicable (e.g., condo fees)

The output of this key is as follows:

Press Calculation

1 Displays stored Qualifying Ratios

(e.g., 32%:40%)

2 Maximum Qualifying Mortgage Amount

(restricted)* 3 Buyer’s Actual Ratios (Income%:Debt%) 4 Unrestricted Qualifying Mortgage Amount* 5 Maximum Allowable Debt

*Note: The Maximum Qualifying Mortgage Amount is the “restricted” mortgage the buyer may qualify for. This mortgage amount is based on whichever of the two ratios – income or debt – limits the buyer the most. The Unrestricted Qualifying Mortgage Amount is the higher mortgage amount. It 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 mortgage amount. For this unrestricted mortgage 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 mortgage amount was based on (i.e., income or debt).

(Cont’d)

12 — Q

UALIFIERPLUS

III

(Cont’d)

Note: This restricted/unrestricted qualifying mortgage 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 mortgage

amount or sales price based on the stored income and debt qualifying ratios and the entered:

• Term

• Interest

• Price (down payment) or mortgage amount

4) Also finds buyer's actual income and debt ratios given both buyer and property data. By

default, the first press of q displays the stored qualifying ratios and the 2nd press calculates the buyer's actual ratios.

Note on U.S. Qualifying: If the calculator is in

Canadian Mode

(see page 16) and you want to

qualify in

U.S. Mode

, activate U.S. Mode via s 9 and enter new U.S. Qualifying Ratios into the q and Q keys.

(Qualify Based on 35%-42%)

— Stores additional Income and Debt ratios and operates identically to the q key. Default Income and Debt ratios for this key are 35% and 42%, respectively.

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

keys.

Income

— Enters the buyer’s

annual

income for mortgage qualifying. Or, enters a monthly income when preceded by the π key (e.g., 5 ) π

i).

D Enters buyer’s long-term,

monthly

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

Expense

— For Total or PITH Payment and Qualifying. Enters monthly heating or other housing expenses (e.g., condominium fees).

SER’SGUIDE

— 13

Property Tax

— Used for calculating PITI and Total (PITH) payment, and Qualifying. Stores estimated annual property tax in either percent or dollar amount. If entered as an annual dollar amount, a press of t converts to the monthly tax amount, and pressing t again 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 ten is assumed to be an annual percentage. Property tax is calculated from the sales price (therefore, you should also enter a Down Payment).

U.S. Keys (Used in U.S. Mode)

Note: Calculator must be set to U.S. Mode. See page 16.

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 year is entered 1 : 1 A; an ARM which decreases 1% per year is entered 1 : 1 s A. (ARM rates are stored permanently.)

s A

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 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 Â keys.

14 — Q

UALIFIERPLUS

III

s p

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 must enter a tax bracket, then press s p p to display the estimated annual income tax savings; the third consecutive press of p will 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 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 for details).

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%)

— 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%)

SER’SGUIDE

— 15

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 turn your calculator off or until you change it using the commands above. You can select to permanently maintain your decimal place selection (remains even after you turn calculator off) by selecting “Hold Entry” for decimal settings under Preferences on page 17.

16 — Q

UALIFIERPLUS

III

Canadian/U.S. Mode

Your calculator is factory-set to Canadian (Interest) Mode. If you need to calculate loan problems using U.S. interest, you must change the calculator to U.S. (Interest) Mode. To easily switch your calculator from Canadian Mode to U.S. Mode, press the s and then the 9 key.

Pressing s 9 also allows you to toggle between Canadian Interest and U.S. Interest calculations. In other words, you may switch from Canadian Interest to U.S. Interest, or vice-versa, by repeating the keystrokes s 9.

Note: While converting to Canadian Interest Mode via

s 9

, the letters “CDN” will appear in the upper left and will also be displayed when the ˆkey is pressed. While converting to U.S. Mode, the letters “USA” will appear, but there will be no “USA” label on the display when the ˆkey is pressed. If you’re unsure what mode you’re in, press

® ˆ

to see if “CDN” is displayed.

Canadian Mode performs the following:

• Allows entry of Canadian interest rates.

• Disables selected U.S.-only functions (ARMS, APR, Rent vs. Buy and Tax Savings).

U.S. Mode performs the following:

• Allows entry of U.S. interest rates.

• Enables selected U.S.-only functions (ARMS, APR, Rent vs.

Buy and Tax Savings).

SER’SGUIDE

— 17

Preference Settings

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

To access the Preference Mode, press s, then =, then keep pressing = to toggle through the settings listed below. Press the + sign to advance through the sub-settings.

To return the calculator to its default, or factory-set Preference Settings, perform a total Reset (see page 74).

After s, Keep

Description

Pressing (Press +to Advance

Display

within each category):

1 Decimal Places

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

(Default)

- DEC Hold Entry — Permanently sets number of decimal places.

2 Payments Per Year

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

(Default)

- P/Y Hold Entry — 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 ALLTAX 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)

18 — Q

UALIFIERPLUS

III

(Cont’d)

After s, Keep

Description

Pressing (Press +to Advance

Display

within each category):

4 Mortgage Insurance (MI)—U.S. Only

- Clr-Clr M Ins — Clears Mortgage Insurance (% and $) upon o o.

(Default)

- Clr-OFF M Ins — Clears Mortgage Insurance (% and $) at O.

- HOLD 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 =

payments 49-60.) (Default)

- AMRT 1-Ent — Displays Amortization from beginning to specified year –

e.g., enter

5 a =

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 µ

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 ® ®; or

3) press s x

(Clear All)

Examples:

STEPS KEYSTROKES DISPLAY

Store number into Memory 3 5 5 µ M 355.00 Add number to Memory 2 5 5 µ M 255.00 Recall total in Memory ® µ M 610.00 Subtract from Memory 7 4 5 s µ M 745.00 Recall total in Memory ® µ M – 135.00 Replace Memory 5 0 s ® µ M 50.00 Recall and clear Memory ® ® 50.00

Store 55, recall, and multiply by 40. Then multiply it by 60.

STEPS KEYSTROKES DISPLAY

Clear o o 0.00 Store 55 5 5 µ M 55.00 Multiply x 4 0 = M 2,200.00 Recall 55 ® µ M 55.00 Multiply x 6 0 = M 3,300.00 Clear Memory ® ® 55.00

20 — Q

UALIFIERPLUS

III

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.

KEYSTROKE 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

SER’SGUIDE

— 21

Additional Memory Storage Keys (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

, noncumulative values. To access these storage registers, use the following keystrokes: s ® • [#], with [#] being digits 0 – 9. These Storage Registers operate identically to M0-M5.

Examples: Store 250 into M10 and recall the value.

KEYSTROKE 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.

KEYSTROKE 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

22 — Q

UALIFIERPLUS

III

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 % key has special applications for real estate professionals — especially when figuring a commission amount.

Percent Change

If a home’s value increased from $315,000 (Present Value) to $350,000 (Future Value), what is the percent increase?

STEPS KEYSTROKES DISPLAY

Subtract appreciated value

from the Present Value 3 5 0 ) – 3 1 5 ) =

35,000.000

Divide the difference by

the Present Value ÷ 3 1 5 ) = 0.11

Calculate percent increase x 1 0 0 = 11.11

(or 11.1%)

SER’SGUIDE

— 23

Figuring Straight % Commission

The commission for the listing office is 3%. If the property sells for $157,900, what is the listing office’s commission?

STEPS KEYSTROKES DISPLAY

Clear calculator o o 0.00 Enter sales price 1 5 7 9 0 0 157,900. Multiply by commission % x 3 % = 4,737.00

— 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 % = 2,368.50 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, 1-Year Home Appreciation (Add-on %)

Properties in your area have been going up in value about 6% per year. If you purchase a $198,000 home today, what would 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 1 9 8 ) 198,000. Add 6% + 6 % 11,880.00 Find appreciated value = 209,880.00

Note: See page 41 for another example of future value or appreciation.

24 — Q

UALIFIERPLUS

III

USING THE DATE FUNCTION

Using the : key, you can quickly solve common real estate date problems: escrow or closing dates, listing expiration dates, and the number of days prepaid interest, etc. You enter a date as follows: Numerical Month :, Numerical Day :, and 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 September 19, 2004, what is the closing date and day?

STEPS KEYSTROKES DISPLAY

Clear calculator o o 0.00 Enter month 9 : 9- Enter day 1 9 : 9-19- Enter year 0 4 9-19-04 Add 45 days + 4 5 = WED 11-03-04

Find the number of days to calculate prepaid interest due at closing, if the escrow closing date is 11/14/04 and the first payment is due 12/1/04.

STEPS KEYSTROKES DISPLAY

Clear calculator o o 0.00 Enter 1st payment date 1 2 : 1 : 0 4 12-1-04 Subtract closing date to

find number of days – 1 1 : 1 4 : 0 4 = 17.00

SER’SGUIDE

— 25

MORTGAGE/TIME-VALUE-OF-MONEY (TVM)

1. The financial functions — Mortgage Amount, Payment, Interest, Term — work just like you would say them. For example, if you wanted to borrow $100,000 for 25 years at 8% interest, just enter those three known variables and press the key for the unknown fourth variable:

Payment

2. When calculating future value problems, enter the present value into the l key.

3. Financial values may be entered in any order you want.

4. Entered values for Term and Interest are permanently stored in memory.

5. While in Canadian Mode (default), the calculator will display “CDN” in the upper left of the display when the ˆ key is pressed.

6. The calculator’s default setting is 12 payments per year, for monthly mortgages.

7. It is good practice to press o twice after completing a financial problem to ensure that you have cleared the previous l and p registers.

8. When solving for a financial component, the calculator may display the word “run” in the display. Solving for interest may take several seconds (up to 15) while the word “run” displays.

9. Once you have calculated an answer, for example, a payment, you can go back and change any financial variable and recalculate your new answer

without

re-entering all the other data. This is handy

for demonstrating various “what-if” mortgage problems.

10. Successive presses of the p key will calculate:

1) the principal and interest (P&I) payment;

2) (optional) the PITI payment, which includes property tax;

3) the total payment/PITH (PITI plus monthly heating expense and other applicable expenses; and,

4) the interest-only payment.

(Cont’d)

EXAMPLES —

CANADIAN MODE

+ 58 hidden pages