Calculated Industries 3416 User manual

Pocket Reference Guide
Residential Mortgage Finance Calculator
MORTGAGE
QUALIFIER PLUS
®
Model 3416

The M ORTGAGE Q UALIFIER P LUS 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

P OCKET R EFERENCE G UIDE — 1
Note: This is a short “reference” guide. Please
see your large User’s Guide for detailed defini-
tions and examples.
:Colon separator (used for
date, ARM adjustment,
qualifying ratios 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
KEY DEFINITIONS

P OCKET R EFERENCE G UIDE — 2
sSets number of displayed
decimal places and acti-
vates 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
lLoan amount
pP&I, PITI, Total Payment,
and Interest-Only Payment

P OCKET R EFERENCE G UIDE — 3
TNumber of years
ˆAnnual interest rate
s l Future value
s ˆ APR
(annual percentage
rate)
, including mortgage
insurance, if entered
PHome’s sales price
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%
qQualify based on
28%-36%
QQualify based on
31%-43%
iAnnual income
DLong-term,
monthly debt
(e.g., car payment)

P OCKET R EFERENCE G UIDE — 4
tProperty Tax (enter as per-
cent or dollar amount)
s t Estimated Tax
savings/after tax payment
IProperty/homeowner’s
Insurance
(enter as per-
cent or dollar amount)
s I Mortgage Insurance (enter
as percent or dollar amount)
eMonthly Expenses (such
as homeowner’s associa-
tion 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

P OCKET R EFERENCE G UIDE — 5
*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 * Interest-only 2nd TD combo
loan; operates similarly to
* function

P OCKET R EFERENCE G UIDE — 6
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
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 9.00
Find payment s p 112.50
EXAMPLES

P OCKET R EFERENCE G UIDE — 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 l171,428.57
Term of a Loan
How long does it take to pay off a loan of
$15,000 at 10% interest if you make 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

P OCKET R EFERENCE G UIDE — 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 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

P OCKET R EFERENCE G UIDE — 9
Enter new interest
rate 6 ˆ 6.00
Find new loan
amount l250,187.42
Loan Amount Based on Sales Price
and Down Payment
Find both $ down payment and loan
amount if the sales price is $375,500 and
you're planning to put 20% down:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter price 3 7 5 5 0 0 P
375,500.00
Enter down% 2 0 d*20.00
Find down$ d75,100.00
Find loan l300,400.00
*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

P OCKET R EFERENCE G UIDE — 10
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 .
PITI Payment, Total Payment and
Interest-Only Payment
• Term: 30 years
• Interest: 6.25%
• Sales price: $325,000
• Down payment: 5%
• Property taxes: 1.3%
• Property insurance: 0.25%
• Mortgage insurance: 0.45%
Find PITI payment:

P OCKET R EFERENCE G UIDE — 11
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
— DO NOT CLEAR CALCULATOR —
Find the total payment, if you estimate
homeowner’s association fees at $80/mo.
Also find the interest-only payment:
STEPS KEYSTROKES DISPLAY
Enter expenses 8 0 e 80.00
Find total pmt. p p p 2,516.60
Find interest-only
payment p1,608.07
*Note: Perform the same steps when entering $
Tax/Ins. — e.g., $1,625 tax, enter
1 6 2 5 t .

P OCKET R EFERENCE G UIDE — 12
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

P OCKET R EFERENCE G UIDE — 13
Estimated Tax Savings
• Loan: $150,000
• Buyer’s tax bracket: 28%
• Term: 30 years
• Interest: 8%
• Property taxes: $1,500
• Property insurance: $250
Note: This is an estimate only.
What is this buyer’s estimated income tax
savings and “after tax” payment?
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter term 3 0 T 30.00
Enter interest 8 ˆ 8.00
Enter tax $ 1 5 0 0 t 1,500.00
Enter insurance$
2 5 0 I 250.00
Enter loan 1 5 0 ) l
150,000.00
Find P&I payment
p“run” 1,100.65
PITI payment p1,246.48
Enter tax
bracket 2 8 s + 28.00
Find annual
tax savings s t t 3,767.32
Monthly tax
savings t313.94
Net payment t932.54

P OCKET R EFERENCE G UIDE — 14
Rent vs. Buy
• Term: 30 years Tax: 1.25%
• Interest: 7.5% Ins: 0.35%
• Down: 10% Tax bracket: 30%
If your client is currently renting a home for
$1,250/month, find the comparable home
sales price and loan amount that he or she
could afford:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter term 3 0 T 30.00
Enter interest 7 • 5 ˆ 7.50
Enter down 1 0 d 10.00
Enter property
tax% 1 • 2 5 t 1.25
Enter insurance%
• 3 5 I 0.35
Tax bracket 3 0 s + 30.00
Enter rent to find comparable
home price 1 2 5 0 s P
221,894.90
Find comparable loan
amount P199,705.41
Find PITI payment
P1,692.23
Find annual
tax savings P5,306.75
Monthly tax
savings P442.23
Reset tax
bracket 2 1 s + 21.00

P OCKET R EFERENCE G UIDE — 15
Clear All s x 0.00
ARM Payment — Lifetime Cap
• Loan: $230,000
• Term: 30 years
• Interest: 7.25%
• Lifetime cap: 4%
• ARM Interest Adjustment: 1% per year
Find the adjusted ARM payments through
year six:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 2 3 0 ) l
230,000.00
Enter term 3 0 T 30.00
Enter interest 7 • 2 5 ˆ 7.25
Find initial monthly
payment p“run” 1,569.01
Enter interest
cap 4 s % CAP 4.00
Enter ARM
parameters 1 : 1 A 1.00 - 1.00
Find 1st “adjusted”
payment A“run” 1 1,724.90
Find 2nd “adjusted”
payment A2 1,883.17
(Cont’d)

P OCKET R EFERENCE G UIDE — 16
(Cont’d)
STEPS KEYSTROKES DISPLAY
Find 3rd “adjusted”
payment A3 2,043.26
Find 4th “adjusted”
payment A4 2,204.68 M*
Find 5th “adjusted”
payment A5 2,204.68 M*
Find principal at start
of year ® l 220,856.34
Recall current interest
rate ® ˆ 11.25
Recall remaining
term ® T 25.00
Clear Cap 0 s % CAP 0.00
*Note that the payment for 4th and 5th adjust-
ments (corresponding to the 5th and 6th years)
is the same because the lifetime cap was
reached on the 4th adjustment. An “M” for
“maximum” will appear in the display once the
Cap is reached.