Calculated Industries 3405 User manual

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.
Software copyrighted and licensed to
Calculated Industries, Inc. by
Real Estate Master Technologies, LLC, 2004.
Pocket Reference Guide copyrighted by
Calculated Industries, Inc. © 2004.
Real Estate Master® and Calculated Industries® are
registered trademarks of Calculated Industries, Inc.
ALL RIGHTS RESERVED
CALCULATED INDUSTRIES®
4840 Hytech Drive
Carson City, NV 89706 U.S.A.
1-800-854-8075 Fax: [phone]
E-mail: [email protected]
www.calculated.com
Designed in the USA
Printed in China
3405PRG-E-B
1/04
R EAL E STATE M ASTER
®
III X
RESIDENTIAL REAL ESTATE
FINANCE CALCULATOR
Model 3405
Pocket Reference Guide

POCKET REFERENCE GUIDE — 1
The REAL ESTATE MASTER IIIX calculator
lets you perform mortgage loan and
financing problems with ease!
Quickly Solve:
• Time-Value-of-Money (TVM) Problems:
Find Loan Amount, Term, Interest,
Payment, Future Value
• Property Tax, Homeowner’s Insurance,
Mortgage Insurance
• P&I, PITI & Interest-Only Payments
• Sales Price and Down Payment
• Rent vs. Buy
• Estimated Income Tax Savings/Deduction
• Adjustable Rate Mortgages (ARMs)
• Amortization and Remaining Balance
• Bi-Weekly Loans
• Date Math Problems
• New! APR, including MI
• New! 80:10:10/80:15:5 Combo Loans
REAL ESTATE MASTER®IIIX
3405PRG-E-B 1/9/04 8:45 AM Page 1

POCKET REFERENCE GUIDE — 2
KEY DEFINITIONS .................................4
Preference Settings —
How to
Access
...............................................9
EXAMPLES...........................................11
Memory —
Add/Subtract/Multiply ......11
Memory/Storage Registers................12
Finding Commission..........................12
Reduction of Listing Price..................13
Date of Escrow Closing.....................13
Monthly Mortgage (P&I) Payment.....14
Term of a Loan ..................................14
Interest Rate......................................15
Loan Amount .....................................15
Loan Amount Based on Sales Price
and Down Payment.........................16
Loan-to-Value ....................................16
Setting Tax and Insurance.................17
P&I, PITI and Interest-Only
Payments.........................................18
Quarterly Payment.............................19
Estimated Tax Savings......................20
Rent vs. Buy......................................21
ARM Payment —
Increasing and
Decreasing Payments
.....................22
Amortization — Using “Next” Feature ..24
TABLE OF CONTENTS
3405PRG-E-B 1/9/04 8:45 AM Page 2

POCKET REFERENCE GUIDE — 3
Amortization for Individual Year(s)—
Month Offset, Tax Bracket Change ...26
Balloon Payment/Remaining
Balance............................................28
APR and Total Finance Charges,
Including Mortgage Insurance.........29
Prepaid (Odd-Days) Interest and APR,
Including Mortgage Insurance.........30
Appreciation/Future Value .................32
Bi-Weekly Loans................................33
80:10:10 Combo Loan vs. Fixed-Rate
Loan with Mortgage Insurance........34
80:15:5 Combo Loan vs. Fixed-Rate
Loan with Mortgage Insurance........37
APPENDIX ............................................40
Default Settings.................................40
Decimal Place Setting .......................40
Batteries.............................................41
Reset .................................................41
Legal Notes .......................................41
3405PRG-E-B 1/9/04 8:45 AM Page 3

POCKET REFERENCE GUIDE — 4
:Colon separator (used for
dates, ARMs, Amortization
ranges, and Combo loans)
bBackspace 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)
µMemory Function:
- µAdds value on dis-
play to Memory
- s µ Subtracts value
on display from Memory
- ® µ Recalls Memory
Total
- ® ® Recalls and
clears Memory Total
sSets number of displayed
decimal places and acti-
vates 2nd functions
s – Change sign
KEY DEFINITIONS
3405PRG-E-B 1/9/04 8:45 AM Page 4

POCKET REFERENCE GUIDE — 5
s x Clear All (Note: perform
with caution as it will
clear/reset stored values)
s = Preference mode (see pg.
9 for details)
s ÷ Payments per year
(Default 12, for monthly)
s b Periodic (identifies entry as
periodic instead of yearly)
s ) Month offset
s : Odd-days interest
s + Tax bracket %
s p Estimated tax
savings/after-tax payment
s P Rent vs. buy
lLoan amount
pP&I, PITI and interest-only
payment
TNumber of years
ˆAnnual interest rate
s l Future value
3405PRG-E-B 1/9/04 8:45 AM Page 5

POCKET REFERENCE GUIDE — 6
s ˆ APR (annual percentage
rate), including mortgage
insurance, if entered
PSales price of property
dDown payment
s T Bi-Weekly loan
aAmortization function
s a Remaining balance
AAdjustable-rate mortgage
s A ARM decreasing interest
% adjustment
s % ARM lifetime interest cap
tProperty tax (enter as per-
cent or dollar amount)*
IProperty/homeowner’s
insurance (enter as per-
cent or dollar amount)*
3405PRG-E-B 1/9/04 8:45 AM Page 6

POCKET REFERENCE GUIDE — 7
s I Mortgage insurance (enter as
percent or dollar amount)*
*Note: Once Tax/Insurance
% (or $) values are entered
— as well as TVM values
— the second press of
t I , or press of s
I I
will compute the $
(or %); third press finds
monthly amounts
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
3405PRG-E-B 1/9/04 8:45 AM Page 7

POCKET REFERENCE GUIDE — 8
*Combo loan function for an
80:10:10 LTV loan; calcu-
lates 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 * Combo loan function for an
80:15:5 loan; same func-
tion as above key
3405PRG-E-B 1/9/04 8:45 AM Page 8

POCKET REFERENCE GUIDE — 9
Preference Settings — How to Access
Press
s , then = , then keep pressing
= to toggle through the main settings.
Press the
+ key to advance within sub-
setting. Use the
– key to back up. Press
any key to exit mode.
Press sand then:
1st press
of =Decimal Places:
--Off 0.00 (returns to 2
decimal places @ Off)
+--Permanently holds
decimal place setting
2nd press =Payments PerYear:
--Returns to 12 @ Off)
+--Holds payments/year
3rd press =Tax/Ins. (Cleared or
Stored):
--Clears T&I ($ or %)
values @ Off
+--Permanently holds only
T&I %
+--Permanently holds T&I
($ OR %)
+--Clears T&I ($ or %) @
o o
(Cont’d)
3405PRG-E-B 1/9/04 8:45 AM Page 9

POCKET REFERENCE GUIDE — 10
(Cont’d)
4th press =Mortgage Insurance
(Cleared or Stored):
--Clears MI ($ or %) @
o o
+--Clears MI ($ or %) @ Off
+--Holds only MI % at Off
+--Holds MI ($ or %)
5th press =Amortization Display
Range:
--ENT-ENT (amortizes for
entered year)*
+--1-ENT (amortizes from
beginning to entered
year)**
6th press =Qualifying Ratios:
--Display at first press of
qor Qkeys
+--Display at end of qualify-
ing sequence
*e.g., 5 a amortizes for payment numbers
49-60 (only 5th year)
**e.g.,
5 a amortizes for payment numbers
1-60 (years 1-5)
3405PRG-E-B 1/9/04 8:45 AM Page 10

POCKET REFERENCE GUIDE — 11
Memory — Add/Subtract/Multiply
Add 1,500 and 2,650 to the cumulative
Memory (M+). Compute subtotal, then
subtract 2,000 and find total.
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Add 1st # 1 5 0 0 µ M 1,500.00
Add 2nd# 2 6 5 0 µ M 2,650.00
Find total ® µ M 4,150.00
Subtract 2 ) s µ
M 2,000.00
Find total and clear
Memory ® ® 2,150.00
Store 55 and multiply by 40. Then recall
Memory Total and 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
EXAMPLES
3405PRG-E-B 1/9/04 8:45 AM Page 11

POCKET REFERENCE GUIDE — 12
Memory/Storage Registers
Store 10, 20, 30 into Memory Storage
keys M0-M2 and recall each value. Then
clear all stored numbers.
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Store 1st # 1 0 s ® 0
M-0 10.00
Store 2nd # 2 0 s ® 1
M-1 20.00
Store 3rd # 3 0 s ® 2
M-2 30.00
Recall 1st # ® 0 M-0 10.00
(Repeat for 1 and 2 )
Clear All s x “All Cleared” 0.00
Note: There are additional Storage Registers
s ® 3 , 4 , 5 and 6 . You cannot store
more than one value in the Storage Registers.
Finding Commission
If a property sells for $535,000 and your
commission rate is 2%, what is your com-
mission in dollars?
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 5 3 5 ) x 2 % =
10,700.00
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POCKET REFERENCE GUIDE — 13
Reduction of Listing Price
A seller is anxious to sell his home and
wishes to reduce the listing price by 5%.
What is the new price, if it is now listed at
$346,000?
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter price 3 4 6 ) 346,000.
Subtract 5% – 5 % 17,300.00
Find new listing
price =328,700.00
Date of Escrow Closing
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
3405PRG-E-B 1/9/04 8:45 AM Page 13

POCKET REFERENCE GUIDE — 14
Monthly Mortgage (P&I) Payment
Find the monthly (P&I) payment on a 30-
year, 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 p1,718.78
Term of a Loan
How long does it take to pay off a loan of
$15,000 at 10% interest if you make pay-
ments 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 T9.85
Number of
months T118.19
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POCKET REFERENCE GUIDE — 15
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 ˆ13.78
Find periodic
interest ˆ1.15
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 month-
ly 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 l237,316.23
Enter new interest
rate 6 ˆ 6.00
Find new loan
amount l250,187.42
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POCKET REFERENCE GUIDE — 16
Loan Amount Based on Sales Price
and Down Payment
Find both down payment dollar amount
and loan amount if the sales price is
$375,500 and you're planning to put 20%
down:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter price 3 7 5 5 0 0 P
375,500.00
Enter down% 2 0 d*20.00
Find down$ d75,100.00
Find loan l300,400.00
*You do not have to label the value as a percent.
Loan-to-Value
Find the LTV if the sales price is $265,500
and the down payment is $15,000.
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter price 2 6 5 5 0 0 P
265,500.00
Enter down 1 5 ) d 15,000.00
Find down% d5.65%
Find LTV % s d 94.35%
3405PRG-E-B 1/9/04 8:45 AM Page 16

POCKET REFERENCE GUIDE — 17
Setting Tax and Insurance
Enter an annual property tax rate of 1.5%,
a property/homeowner’s insurance rate of
0.25% and a mortgage insurance rate of
0.50%:
STEPS KEYSTROKES DISPLAY
Set tax%* 1 • 5 t 1.50
Set insurance% • 2 5 I 0.25
Set mortgage
insurance% • 5 0 s I 0.50
*Note: Do not label as a percent, or use the %
key; it is automatically registered as a percent.
To Enter Tax/Insurance in Dollar Figures: Enter
dollar values for tax/insurance in the same man-
ner — e.g., to enter $5,500 estimated annual
tax, enter
5 5 0 0 t .
3405PRG-E-B 1/9/04 8:45 AM Page 17

POCKET REFERENCE GUIDE — 18
P&I, PITI and Interest-Only Payments
• Term: 30 years
• Interest: 6.25%
• Sales price: $325,000
• Down payment: 5%
• Property tax: 1.3%
• Property insurance: 0.25%
• Mortgage insurance: 0.45%
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter term 3 0 T 30.00
Enter interest 6 • 2 5 ˆ 6.25
Enter price 3 2 5 ) P
325,000.00
Down% 5 d 5.00
Set tax%* 1 • 3 t 1.30
Set insurance% • 2 5 I 0.25
Set MI% • 4 5 s I 0.45
Find loan l308,750.00
Find P&I
payment p“run” 1,901.03
Find PITI
payment p2,436.60
Find interest-only
payment p1,608.07
*Note: Perform the same steps when entering $
Tax/Insurance — e.g., $1,625 tax, enter
1 6 2
5 t
.
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POCKET REFERENCE GUIDE — 19
Quarterly Payment
Find the quarterly payment on a 10-year
loan of $15,000 with an annual interest
rate of 12%:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Set to 4 payments
per year 4 s ÷ 4.00
Enter loan 1 5 ) l 15,000.00
Enter term 1 0 T 10.00
Enter interest 1 2 ˆ 12.00
Find quarterly
payment p648.94
Return to 12 payments
per year 1 2 s ÷ 12.00
3405PRG-E-B 1/9/04 8:45 AM Page 19