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
®
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
®
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).