Calculated Industries 3430 User manual

QUALIFIER PLUS®IIIFX
ADVANCED REAL ESTATE FINANCE
CALCULATOR with CASH FLOW
and COMPLETE BUYER QUALIFYING
Model 3430
Pocket Reference Guide

The QUALIFIER PLUS IIIFX lets you pre-qual-
ify clients and compute 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
• Qualifying Using Flexible Ratios
• Property Tax and Insurance, Mortgage
Insurance
• P&I and PITI payment
• Sales Price and Down Payment
• Adjustable-Rate Mortgages
• Amortization and Remaining Balance
• Bi-Weekly Loans
• Date Math Problems
New!
• 80:10:10/80:15:5 Combo loans
• APR, including Mortgage Insurance
• Cash Flow/Investment Keys
• Income Tax Savings and Rent vs. Buy
• Interest-Only Payments
• LTV, Month Offset, Prepaid Interest
QUALIFIER PLUS®IIIFX

KEY DEFINITIONS..................................4
EXAMPLES ...........................................10
Date Example ....................................10
Monthly Mortgage (P&I) Payment .....10
Loan Amount......................................11
Loan Amount Based on Sales Price
and Down Payment.........................12
Interest Rate ......................................12
Term of a Loan ..................................13
Setting Tax and Insurance.................14
PITI Payment, Total Payment and
Interest-Only Payment.....................15
Quarterly Payment.............................16
Amortization.......................................17
Bi-Weekly Loans................................18
Appreciation.......................................19
Retirement Savings ...........................20
APR and Total Finance Charges,
Including Mortgage Insurance.........21
ARM Payment — Lifetime Cap .........22
Estimated Tax Savings ......................24
Rent vs. Buy ......................................25
Setting Qualifying Ratios ...................26
Qualifying Loan Amount ....................26
“Restricted” vs. “Unrestricted”
Qualifying.........................................28
TABLE OF CONTENTS

Qualifying Comparison (2 Ratios at
Once)...............................................31
Income Required and Allowable
Monthly Debt ...................................33
80:10:10 Combo Loan vs. Fixed-Rate
Loan with Mortgage Insurance........35
Cash Flow..........................................38
APPENDIX ............................................40
Default Settings .................................40
Decimal Place Setting .......................40
Preference Settings ...........................41
Batteries.............................................41
Reset .................................................41

POCKET REFERENCE GUIDE — 1
Note: This is a short “reference” guide. Please
see your Large User’s Guide for details.
: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
display to Memory
- s μ Subtracts value
on display from Memory
- ® μ Recalls Memory
Total
- ® ® Recalls and
clears Memory Total
KEY DEFINITIONS

POCKET REFERENCE GUIDE — 2
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 reset
calculator to defaults)
s = Preference mode (see
Large User’s Guide for
details)
s ÷ Payments per year
(Default 12, for monthly)
s b Periodic (sets per Period
rather than per Year)
s ) Month offset
s : Odd-days interest
s + Tax bracket %
s p Estimated income tax sav-
ings/after-tax payment
s P Rent vs. Buy
lLoan amount
pP&I, PITI, total payment,
and interest-only payment

POCKET REFERENCE GUIDE — 3
TNumber of years
ˆAnnual interest rate or
cash flow desired rate of
return
s l Future value
s ˆ APR (annual percentage
rate), including mortgage
insurance, if entered
PProperty 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
29%-41%
iAnnual income

POCKET REFERENCE GUIDE — 4
DLong-term, monthly debt
(e.g., car payment)
s 7 Property tax (enter as per-
cent or dollar amount)
s 8 Property/homeowner’s
insurance (enter as per-
cent or dollar amount)
s 9 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

POCKET REFERENCE GUIDE — 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 * Combo loan function for an
80:15:5 loan; same func-
tion as above key
cAllows entry of up to 20
cash flows. Use the s
–to label as positive or
negative
s c Frequency — labels a cash
flow that is consecutively
repeating

POCKET REFERENCE GUIDE — 6
RMulti-function key that
computes, upon consecu-
tive presses: IRR%, NPV
& NFV used for cash flow
analysis. (The greater the
IRR and NPV, the more
attractive the investment)
s 6 Clear cash flows

POCKET REFERENCE GUIDE — 7
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
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 P&I
payment p1,718.78
EXAMPLES

POCKET REFERENCE GUIDE — 8
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

POCKET REFERENCE GUIDE — 9
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.
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

POCKET REFERENCE GUIDE — 10
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 in
years T9.85
Number of
months T118.19

POCKET REFERENCE GUIDE — 11
Setting Tax and Insurance
Enter an annual property tax rate of 1.5%,
a hazard insurance rate of 0.25% and a
mortgage insurance rate of 0.50%:
STEPS KEYSTROKES DISPLAY
Enter tax%* 1 • 5 s 7 1.50
Enter insurance%*
• 2 5 s 8 0.25
Enter mortgage
insurance%* • 5 0 s 9 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 s 7.

POCKET REFERENCE GUIDE — 12
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 the Monthly PITI payment:
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
Enter Down% 5 d 5.00
Enter tax% 1 • 3 s 7 1.30
Enter insurance%
• 2 5 s 8 0.25
Enter MI% • 4 5 s 9 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 —

POCKET REFERENCE GUIDE — 13
Find the total payment, if you estimate
homeowner’s association fees at $80/month.
Also find the interest-only payment:
STEPS KEYSTROKES DISPLAY
Enter expenses 8 0 e 80.00
Find total
payment p p p 2,516.60
Find interest-only
payment p1,608.07
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 P&I
payment p648.94
Return to 12 payments
per year 1 2 s ÷ 12.00

POCKET REFERENCE GUIDE — 14
Amortization
• Loan: $300,000
• Term: 30 years
• Interest: 7.5%
Find total interest and principal for the life
of the loan:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 3 0 0 ) l
300,000.00
Enter interest 7 • 5 ˆ 7.50
Enter term 3 0 T 30.00
Find P&I pmt p2,097.64
Find # pmts a1-360
Find total int. a455,151.67
Find total prin. a300,000.00
Find total pmts a755,151.67
Find all values for the first year:
Enter Year 1 1 a 1-12
Find total int. a22,406.22
Find total prin. a2,765.50
Find total pmts a25,171.72
Find balance a297,234.50
Rem. term a29.00
Tax deduct. a6,273.74
Note: Based on default 28% tax bracket and
loan starting in January. To change these val-
ues, see Large User’s Guide.

POCKET REFERENCE GUIDE — 15
Bi-Weekly Loans
• Loan: $212,500
• Term: 30 years
• Interest: 7.85%
Find the Bi-Weekly term, savings, interest
savings, total cost, and Bi-Weekly payment:
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 2 1 2 5 0 0 l
212,500.00
Enter term 3 0 T 30.00
Enter interest 7 • 8 5 ˆ 7.85
Find payment p1,537.09
Find Bi-Weekly
term s T 22.97
Find total interest
savings T94,305.23
Find total interest
paid T246,545.97
Find total
principal T212,500.00
Find total principal plus
interest T459,045.97
Bi-Weekly P&I
payment p768.54

POCKET REFERENCE GUIDE — 16
Appreciation
What will a $350,000 home be worth in 3
years, figuring an inflation or appreciation
rate of 6%?
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Set to 1 payment
per year 1 s ÷ 1.00
Enter present
value 3 5 0 ) l
350,000.00
Enter term 3 T 3.00
Enter appreciation
rate 6 ˆ 6.00
Find future value
(FV) s l 416,855.60
Reset payments
per year 1 2 s ÷ 12.00