Calculated Industries 3442 User manual

M ORTGAGE
Q UALIFIER P LUS
®
PX2
User’s Guide
Model 3442
Desktop Model 43442
MORTGAGE FINANCE CALCULATOR

The M ORTGAGE Q UALIFIER P LUS PX 2 was custom-designed for mort-
gage lenders and residential real estate pros. With the push of a few
buttons, it will pre-qualify prospective buyers instantly and solve hun-
dreds of mortgage loan problems, including Pick-A-Payment ARMS
and Combo Loans!
Features:
• Easy and Complete Buyer Qualifying
• Interest-Only 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, Total Payment, and Interest-Only Payment
• Expanded Tax and Insurance Capabilities
• Built-in Sales Price, Down Payment & LTV
• Works in Annual Term and Interest
• Flexible, “What If” Loan or TVM Calculations — Finds Loan
Amount, Term, Interest or Payment
• Rent vs. Buy
• Estimated Income Tax Savings, Mortgage Interest Deduction
• Date Math, Odd-Days Interest (ODI), Month Offset
• Equity Builder Loans with Comparative Savings
• APR and Total Finance Charges, including Mortgage Insurance
• Complete Amortization
• Remaining Balances/Balloon Payments
• Trust Deeds
• Future Value and Appreciation
• Also Works as a Standard Math Calculator
Pick-A-Payment and Combo (1st/2nd TD) mortgage calculations:
•Pick-A-Payment
• Equity Builder Pick-A-Payment
• Fixed “Combo” Loans
• Pick-A-Payment/Equity Builder Combo Loans
• Loan Savings/Investment Comparisons
Introducing the M ORTGAGE Q UALIFIER P LUS
®
PX
2
Mortgage Finance Calculator

GETTING STARTED..........................................................................1
KEY DEFINITIONS.........................................................................1
Basic Operation Keys....................................................................1
Mortgage Loan (TVM) Keys ..........................................................2
Tax Savings Keys..........................................................................5
Rent vs. Buy Keys.........................................................................6
Qualifying Keys..............................................................................6
Tax, Insurance and Expense Keys................................................9
Pick-A-Payment and Equity Builder Pick-A-Payment Loan Keys...10
Combo Loan Keys.......................................................................13
Pick-A-Payment and Equity Builder Pick-A-Payment
Combo Loan Keys.....................................................................15
BASIC ARITHMETIC EXAMPLES...............................................16
Arithmetic.....................................................................................16
Percentage Calculations..............................................................16
Figuring Straight % Commission.................................................16
Reduction in Listing Price (Discount %)......................................17
Simple, One-Year Home Appreciation (Add-on %) .....................17
CALCULATOR SETTINGS...........................................................17
Decimal Place Selection..............................................................17
Preference Settings.....................................................................18
MEMORY ......................................................................................21
Memory Storage Keys (M0-M5) ..................................................22
Additional Memory Storage Keys (M10-M19) .............................23
EXAMPLES......................................................................................23
MORTGAGE LOANS/TIME-VALUE-OF-MONEY (TVM).............23
Finding the Monthly Loan Payment.............................................24
Finding the Interest-Only Payment..............................................25
Finding the Term of a Loan..........................................................25
Paying Off a Loan Early (Making Larger Payments)...................25
Finding the Interest Rate.............................................................26
Finding the Loan Amount ............................................................26
Finding the Loan Amount (with Interest-Only Payment)..............26
Non-Monthly Loans .....................................................................27
Finding a Quarterly Payment.......................................................27
Sales Price/Down Payment.........................................................28
Finding Loan Amount Based on Sales Price and
Down Payment..........................................................................28
Finding Sales Price and Payment Based on Loan Amount and
Down Payment..........................................................................28
TABLE OF CONTENTS

Finding Loan-to-Value (LTV) Based on Down Payment and
Sales Price ................................................................................29
Entering Loan-to-Value (LTV) and Finding Loan and
Down Payment..........................................................................29
Taxes and Insurance ...................................................................30
Setting Tax and Insurance % Rates............................................30
Recalling Tax and Insurance % Rates.........................................31
Setting Tax and Insurance $........................................................31
Calculating Tax and Insurance % or $.........................................31
PITI Payment (Tax and Insurance Entered as %).......................32
PITI Payment (Tax and Insurance Entered as $)........................33
Total Payment and Interest-Only Payment..................................33
Estimated Income Tax Savings and “After-Tax” Payment...........34
Rent vs. Buy................................................................................35
APR and Total Finance Charges.................................................36
Finding APR, Total Finance Charges (Excluding Mortgage
Insurance)..................................................................................36
Finding APR, Total Finance Charges (Including Mortgage
Insurance)..................................................................................37
Date Examples ............................................................................38
Finding Odd-Days Interest and APR...........................................38
Equity Builder Loans....................................................................39
Equity Builder Term Reduction and Payment..............................40
Equity Builder Interest Savings - Based on Adjusted
Equity Builder Payment.............................................................40
Amortization and Remaining Balance .........................................41
Notes on Amortization .................................................................41
Total Principal/Total Interest for a 30-Year Loan..........................42
Amortization List for Individual Year(s) — Using “Next” Feature ....43
Amortization List for Individual Year(s) — Using Month Offset ......44
Amortization List for Individual Payment(s).................................45
Amortization List for a Range of Payments or Years ..................46
Balloon Payment/Remaining Balance Needed to Pay Off a Loan ...46
Mortgage Interest Tax Savings — 21% or 30% Tax Bracket ...........47
Future Value ................................................................................48
Appreciation.................................................................................48
Basic Savings Account Problem
(Future Value of an Initial Deposit or Lump Sum).....................48
Investment Future Value..............................................................48
Retirement Annuity ......................................................................49
Begin/End Interest Mode.............................................................49
Trust Deeds and Discounted Notes.............................................50
Purchase Price of a Note — Fully Amortized .................................50
Finding the Yield on a Discounted Note......................................50
Finding the Value and Discount of a Trust Deed.........................51

BUYER QUALIFYING...................................................................52
QUALIFYING EXAMPLES ...........................................................53
Recalling Income/Debt Qualifying Ratios....................................53
Storing New Income/Debt Qualifying Ratios...............................54
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..............................................................57
Qualifying Comparison (Comparing 2 Different Loans or
Ratios at Once) .........................................................................58
Finding Income Required and Allowable Monthly Debt...............59
Solving for Actual Qualifying Ratios ............................................60
PICK-A-PAYMENT AND COMBO LOANS ..................................61
Pick-A-Payment Loan (Zero-Month/30-Term) vs.
Standard Fixed-Rate Loan — Entering Starting Payment .............62
Pick-A-Payment Loan (Zero-Month/30-Term) vs.
Standard Fixed-Rate Loan — Entering a Starting Interest Rate %,
Changing ROI% and Payment Cap%; Solving Payment Options .........65
Equity Builder Pick-A-Payment Loan (Zero-Month/30-Term) vs.
Standard Fixed-Rate Loan........................................................68
Pick-A-Payment Loan (3-Month/30-Term) vs.
Standard Fixed-Rate Loan — Finding P-A-P Savings for the First
Three Years (Versus the First Five Years) .........................................70
Fixed-Rate Combo Loan (1st TD/2nd TD) ..................................72
Combo Loan vs. Fixed-Rate Loan with MI..................................73
Combo Loan — Storing a New LTV ................................................74
Pick-A-Payment (3-Month/30-Term) Combo Loan vs.
Fixed-Rate Loan w/MI...............................................................76
Equity Builder Pick-A-Payment (3-Month/30-Term)
Combo Loan vs. Fixed-Rate Loan w/MI....................................78
APPENDIX .......................................................................................80
Default Settings ...........................................................................80
Error Codes .................................................................................80
Auto Shut-Off...............................................................................81
Batteries.......................................................................................81
Reset ...........................................................................................82
Repair and Return.......................................................................82
Warranty ......................................................................................83
Legal Notes .................................................................................84
Looking For New Ideas ...............................................................84

U SER ’ S G UIDE — 1
KEY DEFINITIONS
Basic Operation Keys
OTurns all power off. The memory and most financial
registers are cleared.
oIf 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– 9Digits used for keying in numbers.
)Triple-zero key (saves time when entering 000 values).
•Decimal point.
% Percent — Four-function (+, –, x, ÷) percent key.
See page 20 for examples.
µ Memory — Adds the displayed number to the inde-
pendent memory. Pressing s µ (M-) will sub-
tract the displayed value from the memory. Pressing
® µ recalls and displays the memory contents.
Pressing ® ® clears the memory. (See Memory
section for details.)
® Recall — Recalls and displays the contents of the
financial registers (e.g., ® ˆ). Also used for
Memory functions.
sWorks with other keys to set or activate additional
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).
s – Change Sign (+/–) — Changes the sign of the dis-
played value from positive to negative or vice-versa.
GETTING STARTED

2 — M ORTGAGE Q UALIFIER P LUS
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P X2
s x Clear All — Clears all entered values and returns all
storable values to the default settings. Use this only
with caution, as it will reset ratios, payments 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.
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) prob-
lems, such as finding a loan payment, term, interest or future value,
amortization or Equity Builder loans. Other useful keys, such as
Price and Down Payment, are also included. These mortgage loan
keys let you demonstrate various “What-if” loan scenarios to your
clients.
l Loan Amount — Enters or solves for the initial loan
amount or present value of a financial problem.
p P&I, PITI Payment, Total Payment, Interest-Only
Payment — Enters or solves for the periodic princi-
pal and interest (P&I) payment. Pressing pa sec-
ond time in succession calculates the PITI payment
(P&I plus property tax, property insurance and mort-
gage 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 cal-
culates the interest-only payment.
TEnters or solves for the number of years. Second
press gives the number of periods. You may enter a
periodic term, if you prefer, by pressing the πkey
(e.g., 3 6 π T instead of 3 T). An entered
term greater than 100 will be classified as periodic,
not annual.
Note: Stored permanently, until you change it.
ˆ 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 (FV) — Enters or solves for the future

U SER ’ S G UIDE — 3
value of a financial problem.
s + Investment Future Value — Functions the same as
Future Value, but compounds interest at the begin-
ning of the period rather than the end.
P Sales Price — Enters or calculates Sales Price
based on the entries of Loan Amount (or equivalent
mortgage components) and Down Payment.
d Down Payment — Enters (in either percent or dollars)
or calculates Down Payment, based on the entries
of Loan Amount (or equivalent mortgage compo-
nents) and Sales Price. A second press changes the
entered down payment from a dollar figure to a per-
cent, or vice versa.
Note: Any number under 100 is assumed to be a percent down
payment.
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 (cannot calculate loan
amount or price based on entered LTV and Down
Payment). Also used in Combo Loan problems for
comparing to a straight first with mortgage insurance.
(Default: 80.00%-10.00%)
Note: Stored permanently, until you change it.
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 finance charges, amount financed,
total amount financed (finance charges + amount),
P&I payment, monthly mortgage insurance (MI) and
the P&I with MI payment (PIMI), based on the entry
of mortgage insurance via the s 9 keys.
π Periodic — Used to specify a term, interest,
income, amortization, or remaining balance value as
periodic rather than annual . Periods are determined
by the payments per year setting. For example,
3 6 π T enters 36 periods, or months.
s π Interest-Only Payment — Enters or calculates the

4 — M ORTGAGE Q UALIFIER P LUS
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P X2
interest-only payment. This is also calculated via the
fourth press of the pkey.
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 per year permanently
or semi-permanently. See “Preference Settings”.
a Amortization (Amort) — Finds total interest, princi-
pal, remaining balance, remaining term, and estimat-
ed mortgage interest tax deduction.
The output of this key is as follows:
Press Display or Calculation
1 Enters or 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 21%*
*You may enter any tax bracket (e.g., 30%, press
3 0 s p and recalculate amortization values).
Note: This is only for estimating a mortgage interest tax deduction
it does not include property tax. See “Tax Savings” keys for
income tax savings including property tax and mortgage interest.
s a Remaining Balance (Rem 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 πkey). Note that you
can also see the remaining balance with continuous
presses of the akey.
: Colon Separator (Date) — Used as a separator for
entering dates, 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 pre-paid inter-

U SER ’ S G UIDE — 5
est, 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.
s T Equity Builder — Converts a regular monthly loan
to an Equity Builder loan, where the buyer may real-
ize significant interest savings. After loan variables
are entered, pressing sTdisplays the reduc-
tion in term. The second press of Tdisplays the
total interest savings; third press displays the effec-
tive interest rate; the fourth press displays the total
interest paid; fifth press displays the total principal
paid; sixth press displays the total principal and
interest paid; and seventh press calculates the
Return on Investment (ROI%). Pressing pwill cal-
culate the Equity Builder payment. Pressing s
Tagain will exit Equity Builder Mode and re-cal-
culate based on the original term.
Note: Your calculator is programmed to calculate special interest-
saving Equity Builder Pick-A-Payment loans. With the EB P-A-P,
each payment is directly applied to loan principal, or applied twice
a month – unlike other loan programs, which may apply the pay-
ments to principal only once a month, or at the end of the year.
This results in even lower interest costs than typical bi-weeklies,
as well as significant P-A-P loan investment savings.
Tax Savings Keys
s p Estimated Tax Savings (Tax Svgs) — Calculates
an estimated annual income tax savings for a mort-
gage, based on entered loan variables, including
property tax, mortgage interest, and tax bracket. You
must enter a tax bracket, then press sppto
display the estimated annual tax savings; the third
consecutive press of pwill display the monthly tax
savings, and the fourth press will display the estimated
“after-tax” mortgage payment, or net payment.
Note: This function is different from the mortgage interest deduc-
tion 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
a key definition for details).

6 — M ORTGAGE Q UALIFIER P LUS
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P X2
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 vari-
ables and a tax bracket via s p, then enter the
prospective buyer’s current rent and press s
P. Consecutive presses of Pwill calculate the
comparable sales price, loan amount, monthly loan
payment (including tax/insurance, if entered) and
estimated annual/monthly income tax savings, and
tax bracket.
s p Tax Bracket (Tax Brkt%) — Enters a buyer’s tax
bracket for figuring Rent vs. Buy calculations or for
calculating estimated mortgage interest tax deduc-
tion in the Amortization calculation. Press ® s
pto display stored percentage. (Default=21%)
Qualifying Keys
q (Qualify Based on 28%-36%) — A multi-function
key which, based on entered variables, performs the
following qualifying functions:
1) Stores income and debt ratios for loan qualify-
ing. Entered ratios are separated by the Colon :
key. For example, income and debt ratios of 28%
and 36%, respectively, are entered and permanently
stored as follows: 28:36q. Default
income and debt ratios for this key are 28% and
36%, respectively. You may change qualifying ratios,
as desired.
What are Qualifying Ratios?
The income ratio calculates the allowable percent-
age 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 conserva-
tive rule is that housing expenses should be 28% or
less of income, while total housing expense/debt
should be 36% or less of income.
(Cont’d)

U SER ’ S G UIDE — 7
(Cont’d)
INCOME RATIO =
TOTAL HOUSING EXPENSE
GROSS MONTHLY INCOME
DEBT RATIO =
TOTAL HOUSING EXPENSE + MO. 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.
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 (MI)
• other monthly housing expenses
(e.g., homeowner’s association dues)
The output of this key is as follows:
Press Calculation
1 Displays stored Qualifying Ratios
(e.g., 28%:36%)
2 Maximum Qualifying Loan Amount (restricted) *
3 Buyer’s Actual Ratios (Income%:Debt%)
4 Qualifying Loan Amount (unrestricted) *
5 Maximum Allowable Debt
(Cont’d)

8 — M ORTGAGE Q UALIFIER P LUS
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(Cont’d)
*The Maximum Qualifying Loan Amount displayed is the “restricted”
loan amount that the buyer may qualify for. This loan amount is
based on whichever of the two ratios, income or debt, limits the
buyer the most. If the buyer’s maximum qualifying loan amount is
restricted by their debt, then the unrestricted qualifying loan amount
will also be displayed. The unrestricted qualifying loan amount is
based purely on the buyer’s income and is not restricted by their
debt. If the maximum qualifying loan amount is restricted by their
income, the unrestricted qualifying loan amount will not be
displayed. This is useful to show clients what size loan they could
qualify for if they paid off debt. Here, the calculator will display the
loan amount with “UNR” (for unrestricted) and “INC” to indicate that
it is based on income.
3) Calculates the annual 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 qdisplays the stored
qualifying ratios and the 2nd press calculates the
buyer’s actual ratios.
s q (Interest-Only Qualify Based on 28%-30%) —
Preforms the same qualifying calculations as q,
but based on the Interest-only payment rather than
the fully amortized payment.
Q (Qualify Based on 33%-40%) — Stores additional
Income and Debt ratios (e.g., FHA/VA) and operates
identically to the qkey. Default Income and Debt
ratios for this key are 33% and 40%, respectively.
Note: You can store whatever ratios you desire in the q or Q
keys.
s Q (Interest-Only Qualify Based on 33%-40%) —
Preforms the same qualifying calculations as Q,
but based on the Interest-only payment rather than
the fully amortized payment.
i Income — Enters the buyer’s annual income for
loan qualifying. Enters a monthly income when pre-
ceded by the skey (e.g., 5000si).
DEnters buyer’s long-term, monthly debt.

U SER ’ S G UIDE — 9
Tax, Insurance and Expense Keys
In addition to Qualifying, the following keys are also involved in PITI
and Total Payment calculations (e.g., they are added to the monthly
payment):
s 7 Property Tax (Tax) — Used for calculating the PITI
payment and for Qualifying. Stores estimated annual
property tax in either percent or dollar amount. If
entered as an annual dollar amount, a press of ®
and 7converts to the monthly tax amount, and
pressing ®7again converts to the annual per-
centage rate. If entered as a percentage, pressing
® 7 converts to the annual dollar amount, and
pressing ®7once 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).
s 8 Property Insurance (Ins) — Used for calculating
the PITI payment and for 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 8converts to the
monthly insurance amount or premium, and press-
ing ®8again converts to the annual percentage
rate. If entered as a percentage, pressing ® 8
converts to the annual dollar amount, and pressing
® 8 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),
unless changed in Preference Settings.
s 9 Mortgage Insurance (Mtg Ins) — Used for calculat-
ing the PITI payment and for Qualifying. Stores esti-
mated annual mortgage insurance in either percent
or dollar amount. If entered as an annual dollar
amount, a press of ®and 9converts to the
monthly mortgage insurance amount or premium,
and pressing ®9again converts to the annual
percentage rate. If entered as a percentage, press-
ing ®9converts to the annual dollar amount, and
pressing ®9once more shows the monthly
insurance.
(Cont’d)

10 — M ORTGAGE Q UALIFIER P LUS
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(Cont’d)
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.
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 automat-
ically be re-calculated if sales price or loan amount is changed.
s D Expense (Exp) — For Total Payment and Qualifying.
Enters monthly housing expense (e.g., homeowner’s
association dues, maintenance and utilities).
A Expense (Desktop Model 43442 only) — See pre-
vious definition for s D.
Pick-A-Payment and Equity Builder Pick-A-Payment Loan
Keys
These keys allow you to demonstrate the savings of P-A-P and
EB P-A-Ps, or below-market initial interest or low initial payment
loans, over regular fixed-rate loans.
Pick-A-Payment calculations use all the keys in the second row of
the calculator. When performing a P-A-P/EB P-A-P calculation, the
calculator will also compare the “fixed” loan values within the l,
p, Tand ˆregisters.
The following defines the P-A-P/EB P-A-P specific keys:
S Start Rate % or Start Payment — Stores and dis-
plays the Start (Teaser) Rate or the Start Payment
for P-A-P and EB P-A-P loans. The Start specifies
what low rate or payment the loan will start at.
If a percentage or payment is entered, the second
press will calculate the respective dollar value or per-
centage value. Successive presses of Swill toggle
between the starting percent and the dollar amount.
s S Note % — Stores and displays the actual rate, or the
Fully Indexed Rate (FIR) for P-A-P/EB P-A-P loans.
ß Start Term — Stores the length of time (in months)
that the P-A-P Start Rate is in effect. The Start # of
Months specifies how many months the payments
will be applied to principal & interest (fully amortized)
at the low rate, versus only being applied to the
interest (negative amortization). (Default: 0 month)

U SER ’ S G UIDE — 11
s ß Pick-A-Payment Term —Enters the P-A-P/EB P-A-P
term that is independent of the Standard Tentry
for fixed-rate loans.
s 6 Annual Payment Cap % (Pmt Cap%) — Stores the
annual percent cap for the P-A-P/EB P-A-P annual
payment adjustment, which is applied for the select-
ed Recast period. (Default: 7.5%)
When the Recast period is achieved, then the com-
parison between the new payment (made for each
year) and the Cap Payment is no longer applied.
s % Return on Investment (ROI%) — Stores and dis-
plays the Return on Investment (ROI) percentage
used to compute the five-year (or less than 5-year, if
specified) investment savings for P-A-P/EB P-A-P
loans over fixed-rate loans. (Default: 10%)
∏ Pick-A-Payment — This type of mortgage starts out
with a low, below-market interest rate, or initial pay-
ment, as defined by S, during a short period (e.g.,
0, 1, 3, 6, 9, 12 or 36 months) of full amortization at
the initial low rate, as defined by ß.After the Start
Period, the payments are applied to interest only
(deferred interest) at the Note % and begin to
increase, restricted by the specified Annual Payment
Cap%, until the Recast Term (e.g., 5, 10 years) is
reached. After the Recast Period, the loan is recal-
culated based on the remaining balance, Note%,
and remaining P-A-P term and the payment stays
fixed for the remainder of the term (e.g., if recast
period is 10, at the end of 10 yrs, it is recast based
on Note% and remaining P-A-P Term).
Note: With the Zero-month P-A-P, the interest starts compounding
at the full Note rate immediately (there is no waiting period).
However, the initial payment is still extremely low.
(Cont’d)

12 — M ORTGAGE Q UALIFIER P LUS
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P X2
(Cont’d)
The typical output of this key is as follows:
Press Calculation
1-5 P-A-P Payments (Years 1-5)*
6 Range for P-A-P Savings and ROI%
Savings Range**
7 P-A-P Savings (vs. fixed-rate loan or
P-A-P Note%
8 Stored ROI% (Default 10%)
9 ROI% Savings (based on default of 10%, or
input of ROI%)
10 Range of P-A-P Amortization
11 P-A-P Total Principal and Interest
12 P-A-P Total Interest Paid
13 P-A-P Loan Balance at End of Range
*Unless “1.00”, “none” or “ALL” payment cutoff is
selected via the Preference Settings.
**Based on default years 1-5, or an entered number
of years less than 5.
Note: The actual number of payments displayed will depend upon
the type of P-A-P loan, the payment cap, and the difference
between starting and fully indexed interest rates.
The P-A-P Savings is calculated using the difference
between the P-A-P payments and the fixed-rate loan
payments (p). If no fixed-rate loan is entered, the
calculator will use the P-A-P Note rate for the loan
comparison. ROI is not applied to this value, thus
providing the P-A-P Savings, also known as the
“raw” savings. The Return on Investment (ROI) is
based on the stored ROI% (default is 10%, but any
ROI% can be entered). You may want to enter sev-
eral different ROI%’s to compare different savings
scenarios (see the first P-A-P example).
The P-A-P Savings and the Return on Investment
(ROI) for a P-A-P/EB P-A-P are calculated for the
first five years, unless a number less than five is
entered. For example, entering 2 ∏ will
(Cont’d)

U SER ’ S G UIDE — 13
(Cont’d)
calculate the P-A-P Savings and ROI for the first two
years. Calculating the P-A-P (or EB P-A-P) with an
entered number greater than five years will still cal-
culate the P-A-P Savings and ROI for years 1-5;
however, the P-A-P loan will be amortized based
upon the range entered (i.e., 7 ∏ will calculate
P-A-P Savings and Investment Savings w/ROI for
years 1-5, and the Amortized values will be calculat-
ed for years 1-7).
e Equity Builder Pick-A-Payment Adjustable Rate
Mortgage — Operates identically to the regular
P-A-P key, except it’s based on 26 payments per
year instead of 12.
s ∏ Payment Options — Displays the P-A-P Start pay-
ment (1st year only), the interest-only payment
(based on Note Rate), 30-year payment (based on
Note Rate), 15-year payment (based on Note Rate),
and P-A-P deferred interest payment.
s e Payment Options — Same values as above, but
for the Equity Builder Pick-A-Payment loan.
Combo Loan Keys
The Combo Loan keys show the savings of obtaining a 2nd Trust
Deed (TD) loan over a single, fixed-rate loan where mortgage insur-
ance (MI) is required.
This routine requires a fixed-rate loan to be entered using the stan-
dard l, p, ˆand/or Tkeys so that a loan comparison can
be made.
s d Loan-to-Value Combo Loan (LTV 1st:2nd) —
Stores the Loan-to-Value (LTV) ratio for the 1st and
2nd TD loans using the :key. 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 pay-
ment). Both values need to be entered for a valid
entry. Values will be retained until changed or reset.
(Default: 80.00-10.00)

14 — M ORTGAGE Q UALIFIER P LUS
®
P X2
! 1st TD Interest:Term — Stores the annual interest
and term for the fixed-rate 1st TD. These values are
used when calculating the 1st:2nd fixed Combo
Loan. Entry is made using the :key (separating
interest and 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 fixed-rate 2nd TD. These values are
used when calculating the 1st:2nd fixed Combo and
P-A-P/EB P-A-P Combo Loans. Entry is made using
the :key (separating interest and term). Both inter-
est and term values are required for a valid entry.
Values will be retained until changed or reset.
C 2nd TD Interest:Term (Desktop model 43442
Only) — See previous definition for s !.
s 5 Fixed-Rate Combo (1st & 2nd Trust Deed) Loan —
When s 5 is selected and all other variables are
entered, the calculator will display the following:
Press Calculation
1 Combo Loan Blended Interest Rate
*2 Equivalent Interest Rate (for Fixed-Rate
Loan with MI)
3 Combo Loan Total (1st/2nd TD) Payment
*4 Equivalent P&I Payment (for Fixed-Rate
Loan with MI)
*5 Monthly Savings over Fixed-Rate Loan w/MI
*6 Adjusted 2nd Term (if Savings Applied to
2nd Trust Deed Loan)
7 1st Trust Deed Loan Amount
8 2nd Trust Deed Loan Amount
9 1st Trust Deed Loan Payment
10 2nd Trust Deed Loan Payment
11 LTV Ratio
*If no comparison loan values are entered, these solutions are
not displayed.
BF Fixed-Rate Combo (Desktop model 43442 Only) —
See previous definition for s 5.

U SER ’ S G UIDE — 15
s 4 Interest-Only 2nd Trust Deed Combo —Operates
similarly to the Fixed-Rate Combo Loan function, but
for a combo loan where the 2nd Trust Deed is
Interest-Only (the 1st Trust Deed is a standard fixed-
rate P&I loan).
sB Interest-Only 2nd Trust Deed Combo (Desktop
model 43442 Only) — See previous definition for
s 4.
Pick-A-Payment and Equity Builder Pick-A-Payment
Combo Loan Keys
This calculator also has the capability of using a P-A-P or EB P-A-P
loan as the 1st Note in a Combo Loan. These keys are again used
to compare P-A-P/EB P-A-P Combo Loans against a standard,
fixed-rate loan requiring monthly private mortgage insurance (MI).
N P-A-P Combo Loan — This function will solve for a
Combo Loan using the P-A-P as the 1st Trust Deed.
The calculations displayed are listed below:
Output Calculation
1-5 1st TD P-A-P Payments (1-5)
6 1st TD Loan Amount
7-10 1st TD (P-A-P) Total Principal and Interest,
Total Interest, and Remaining Balance
11 2nd TD Loan Amount
12 2nd TD Fixed Payment
13-15 2nd TD (Fixed) Total Principal and Interest,
Total Interest, and Remaining Balance
16 Adjusted 2nd TD Term (if savings applied to
2nd TD)
s N EB P-A-P Combo Loan — Operates identically to
the above, as a 2nd function of the Nkey, but
uses a bi-weekly P-A-P (EB P-A-P) Loan as the 1st
Trust Deed.