Calculated Industries Qualifier Plus IIcx User manual

Q UALIFIER P LUS
®
II CX
For the Real Estate Professional
User’s Guide

Introducing the Qualifier Plus IIcx . . . . . . . . .3
Key Definitions . . . . . . . . . . . . . . . . . . . . . . .4
Operating Basics . . . . . . . . . . . . . . . . . . . . .12
Decimal Place Selection . . . . . . . .12
Basic Math . . . . . . . . . . . . . . . . . .12
Percent Calculations . . . . . . . . . . .13
Memory Functions . . . . . . . . . . . .13
Date Function . . . . . . . . . . . . . . .14
Mortgages & Real Estate Loans . . .15
Sales Price/Down Payment . . . . . .20
Taxes & Insurance/PITH Payment .21
Amortization & Remaining Balance26
Future Value . . . . . . . . . . . . . . . .33
Trust Deeds & Discounted Notes .34
APR & Total Finance Charges . . . .36
Qualifying . . . . . . . . . . . . . . . . . .38
U.S.-Mode Only Functions . . . . . . . . . . . . . .51
Odd Days Interest & APR . . . . . . .51
Bi–Weekly Loans . . . . . . . . . . . . .53
Adjustable Rate Mortgages . . . . . .54
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . .59
Default Settings . . . . . . . . . . . . . .59
Battery & Auto Shut–Off . . . . . . . .59
Error Codes . . . . . . . . . . . . . . . . .59
Warranty & Repair . . . . . . . . . . . .60
How to Reach CII Headquarters . .63
TABLE OF CONTENTS
2—Qualifier Plus
®
IIcx

Created specifically for residential real
estate professionals, the enhanced
Qualifier Plus IIcx is the simplest calcu-
lator ever made for residential real estate
financing. With the press of a few but-
tons, it solves hundreds of real estate
problems.
◆3–way Mortgage Qualifying
◆Instant P&I and PITH Payments
◆Loan/Mortgage Amounts
◆Tax and Insurance Capabilities
◆Interest Rates & Terms for both
Canada and the U.S.
◆Built–in Sales Price and Down
Payment
◆Complete Amortization
◆Remaining Balances/Balloon
Payments
◆Date Math Functions
◆Future Value and Appreciation
◆Yields/Prices on Trust Deeds & Notes
◆Loan Start Month Other than January
INTRODUCING
QUALIFIER PLUS®IICX
User’s Guide — 3

[+] [–] [x] [÷] [=]
Arithmetic operation keys.
[0] – [9] [000] and [•]
Digits used for keying in numbers.
[Off]
Turns all power off. The Memory and
most financial registers are cleared.
[On/C]
When off, turns power on. When on,
first press clears the last entry. Second
press clears temporary registers.
[%]
Four-function (+, –, x, ÷) percent key.
[M+]
Adds displayed value to Memory.
Pressing [Set] [M+] will subtract the dis-
played value from Memory. See
Memory Functions .
[Rcl]
Recalls and displays the contents of the
Memory or financial registers.
[Set]
Used with other keys to set or activate
the function printed above the key on
your calculator’s face. When used, a
small boxed “S” appears on the display.
KEY DEFINITIONS
4—Qualifier Plus
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IIcx

[Dn Pmt]
Down Payment: Enters (in either Percent
or Dollars) or calculates a Down Payment
based on the entries of Loan Amount (or
equivalent mortgage components) and
Sales Price. A second press toggles the
entered down payment from dollar fig-
ure to percent or vice versa.
Note: any
entered numerical value under 100 is
assumed to be a “percent down payment.”
[Price]
Sales Price: Enters or calculates a Sales
Price based on the Loan Amount and
Down Payment.
Note: Entered Sales Price
values will not normally change.
[L/A]
Loan Amount: Enters or solves for the
initial loan amount or present value of a
financial problem.
[Pmt]
Payment: Enters or solves for the periodic
principal and interest (P&I) payment.
Pressing twice calculates PITH (including
property tax, insurance, mortgage insur-
ance and heat, if entered).
[Term]
Enters or solves for the number of years.
A second press gives number of periods.
[Int]
Interest: Enters or solves for the annual
interest rate. Press twice for the periodic
rate. (Stored permanently, until changed)
User’s Guide — 5

[Set] [9]
Interest Mode: Toggles the mode of interest
between a semi-annual compounding (for
Canadian Mortgages) and a compounding
equal to payment periods for simple inter-
est loans.
[Per]
Period: Specifies a mortgage component
(Term/Interest) or amortization/remain-
ing balance value as “per period” rather
than “per year.” For example, 360 [Per]
[Term] enters 360 periods.
[FV]
Future Value: Enters or solves for the
future value of a financial problem.
[Amort]
Amortization: Finds total interest, princi-
pal and remaining balance. First press
enters or shows range of periods.
Second press shows total interest for
period range. Third press shows total
principal for range, and final press gives
remaining balance at end of range.
[:]
Colon: Used to specify a range for
amortization or to separate ARM
Interest: Term and Qualifying
GDSR:TDSR ratio entries. Also used to
separate values in a date entry.
[Ins]
Property Insurance: Stores and recalls
annual property insurance as percent
6—Qualifier Plus
®
IIcx

or dollar amount. Repeated presses
toggle between percent and dollar val-
ues. Values of 10 or less are assumed to be
annual percentages. Computed from the
sales price.
Note: Tax & Insurance
entered as dollar amounts remain fixed,
even if sales price or loan amount are
changed. However, if entered as a percent
of sales price or loan amount, these items
are automatically recalculated if sales
price or loan amount are changed.
[Tax]
Property Tax: Stores and recalls annual
property tax in either percent or dollar
amount. Repeated presses toggle
between percent and dollar values.
Values of 10 or less are assumed to be
annual percentages. Computed from
the sales price.
[Set] [÷]
Payments per Year: Sets the number of
payment periods per year. Default is 12,
for monthly. Any change to this setting is
permanent until reset. To reset to 12 pay-
ments per year, press 12 [Set] [÷].
[Set] [x]
All Clear: Clears and resets the calculator
to its default settings and values. Use this
with caution as it resets ratios, periods
per year, etc. to default settings (see
Default Settings in Appendix).
User’s Guide — 7

[Set] [+]
Pro-Mode: Toggles the Pro–Mode setting
“On” and “Off” (default). An advanced
user feature, Pro-Mode changes Tax,
Insurance, and Mortgage Insurance to
permanent entries. Pro-Mode also
changes the order that qualifying values
are displayed when using the [Qual 1]
and [Qual 2] keys, by showing the lower,
or restrictive amount with the first press,
the higher, or nonrestrictive amount with
the second press, and the buyer’s actual
ratios with the third press. The fourth
press displays the stored GDSR:TDSR
ratios.
[Set] [–]
Change Sign: Toggles the sign of a dis-
played value.
[Set] [:]
Month Offset: Used to set the first month
of payment for annual amortization if
other than January.
[Set] [Int]
AnnualPercentageRate(APR): Calculates
APR (for fixed rates only), based on the
entry of points and/or non-recurring loan
fees paid at initiation. Not used for ARM.
[Set] [Amort]
Remaining Balance: Displays
Remaining Balance when preceded by a
single year or range of years (or individ-
ual payment or range of payments by
8—Qualifier Plus
®
IIcx

using the [Per] key). Continue pressing
[Amort] to see the Remaining Balance.
U.S.-Mode Only Functions
[ARM]
Adjustable Rate Mortgage: Calculates
payment and re-amortizes fully or par-
tially amortized Adjustable Rate Mortgage
based on the inputs of both Interest
Adjustment and Term Adjustment,
which are separated by the Colon [:]
key. For example, an ARM which
adjusts 1% every year is entered as 1
[:] 1[ARM]. Pressing [Set] [ARM] adjusts the
rate up or down to show future payments.
(ARM rates are stored permanently.)
[Set] [%]
Lifetime Interest Cap (ARMs):
Permanently sets the lifetime interest cap
for ARMs by entering the maximum
interest increase. Reset to 0 by pressing 0
[Set] [%].
[Set] [000]
Odd Days Interest: Calculates the pre-
paid interest, or simple interest accumu-
lated (based on a 360 day year) during the
days before the first loan payment. Uses
stored Interest value.
[Set] [Pmt]
Estimated After-Tax Payment: Calculates
an estimated “after-tax” payment if loan
variables and property taxes are entered.
User’s Guide — 9

First enter a tax bracket, then press [Set]
[Pmt] to display the annual tax deduction;
second press displays the monthly tax
deduction; third press displays the “after-
tax” payment.
[Set] [Term]
Bi-Weekly Mortgage function: Converts
between monthly and bi-weekly loans.
A second press of [Term] while in bi-
weekly mode, displays the total interest
savings.
[Set] [ARM]
ARM Rate Increase/Decrease: Changes
ARM function from increasing to
decreasing rate.
Qualifying Keys – “Plus” Model Only
[Qual 1]
A multifunction key which performs
the following qualifying functions:
1. Stores a GDSR:TDSR Ratio: (i.e. 32 [:]
40 [Qual 1]). The entered ratio will
remain in storage until revised or reset.
(defaults to 28%:36%.)
2. Finds the Maximum Loan Amount
based on income and other entered
values (interest, term, taxes, insurance,
etc.) when loan amount is zero.
3. Finds the Minimum Income Required
based on loan amount and other
entered values when income is zero.
10 — Qualifier Plus
®
IIcx

4. Finds the Actual GDSR:TDSR Ratio
based on loan amount, income and
other entered values.
[Qual 2]
Stores additional (i.e., Government
FHA/VA) GDSR and TDSR ratios and
operates same as the [Qual 1] key.
Default GDSR and TDSR ratios for this
key are 29% and 41%, respectively.
[Inc]
Income: Enters the annual income for
loan qualifying.
[Debt]
Debt: Enters long-term monthly debt pay-
ments.
[Exp]
Expense: Enters monthly housing expenses
(i.e., monthly heating expense, homeowners’
association dues, maintenance and utilities).
[Mtg Ins]
Mortgage Insurance: Stores and recalls
annual mortgage insurance (i.e., Private
Mortgage Insurance) in either percent or
dollar amount. If entered as a dollar
amount, a second press converts to
annual percentage rate. If entered as a
percentage, a second press shows the
equivalent annual dollar amount. The
number 10 or less is assumed to be an
annual percentage. Computed from the
loan amount.
Note: The calculator will
remember the value as it was entered (i.e., a
percent or dollar value.)
User’s Guide — 11

Decimal Place Selection
You can use the [Set] key to perma-
nently select the number of decimal
places displayed. (Values are rounded
using 5/4 rounding.) You may do this
before or after finding an answer.
Press [Set] followed by the number of
decimal places you wish to display:
[Set] 3 0.000
[Set] 2 0.00 (Default)
[Set] 1 0.0
[Set] 0 0.
[Set] [•] Floating Decimal
Note: To return to the standard two dec-
imal place setting, press [Set] 2.
Basic Math
Both calculators use standard chaining
logic. This means the first value is
entered, then an operator, then the
second value, then the Equal key to
get your answer.
A. 216 [+] 84 [=] 300.00
B. 216 [–] 16 [=] 200.00
C. 12 [x] 12 [=] 144.00
D. 144 [÷] 12 [=] 12.00
OPERATING BASICS
12 — Qualifier Plus
®
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Percentage Calculations
The Percent [%] key is used to find a
given percent of a number or for work-
ing add-on, discount or division percent-
age calculations.
A. 800 [x] 25 [%] [=] 200.00
B. 250 [+] 10 [%] [=] 275.00
C. 25 [–] 50 [%] [=] 12.50
D. 200 [÷] 50 [%] [=] 400.00
Memory Functions
Pressing the [M+] key adds the dis-
played value to Memory. [Set] [M+] sub-
tracts the displayed value from Memory.
[Rcl] [M+] recalls and displays the total
value in Memory. [Rcl] [Rcl] displays and
clears the Memory. [Set] [Rcl] clears
Memory without clearing the display.
1. 355 [M+]
[Rcl] [Rcl] 355.00
2. 355 [M+]
255 [M+]
745 [Set] [M+]
[Rcl] [Rcl] – 135.00
Note: [Set] [Rcl] [M+] may be used to
replace any value in memory with the dis-
played value.
1. 355 [M+] 355.00
2. 500 [Set] [Rcl] [M+] 500.00
[Rcl] [Rcl] 500.00
User’s Guide — 13

Date Function
Using the [:] key, you can quickly solve
common real estate date problems:
escrow or closing dates, listing expiration
dates, and the number of days prepaid
interest, etc. You enter a date as follows:
Numerical Month [:], Numerical Day [:]
and Numerical Year.
The date function lets you: 1) add a
number of days to a date to find a future
date, 2) subtract a number of days from
a date to find a past date, and, 3) subtract
one date from another date to find the
number of days in between.
Find the number of days to calculate
prepaid interest due at closing, if the
escrow closing date is 10/14/96 and
the first payment is due 11/1/96.
Steps/Keystrokes Display
1. Clear calculator:
[On/C] [On/C] 0.00
2. Enter 1st payment date:
11 [:] 1 [:] 96 11-1-96
3. Subtract closing date to find number of
days:
[–] 10 [:] 14 [:] 96 [=] 18.00
14 — Qualifier Plus
®
IIcx

Mortgages & Real Estate Loans
1. The financial functions; L/A, Pmt, Int,
and Term, work like you would say
them. For example, to find the pay-
ment on a $100,000 loan for 25 years
at 10% interest, enter the three known
variables and press the key for the
unknown fourth variable: Payment.
2. Financial values may be entered in any
order.
3. Values for Term and Interest are per-
manently stored in memory.
4. Always press [On/C] twice after com-
pleting a financial problem to ensure
the financial registers are cleared.
5. When solving for a financial compo-
nent, the word “run” displays.
6. Once an answer is calculated, for
example, a payment, you can change
any variable and recompute for a new
answer without having to re-enter the
other data.
Note: Press [Set] [9] to toggle between
Canadian Mortgage and Simple Interest
modes. The following examples assume
you are in Canadian Mortgage Interest
mode.
User’s Guide — 15

Finding a Monthly Loan Payment
Find the monthly payment on a $95,500,
25 year loan at 7.75% annual interest.
Steps/Keystroke Display
1. Clear calculator:
[On/C] [On/C] 0.00
2. Enter loan amount:
95,500 [L/A] 95,500.00
3. Enter term, interest and find the monthly
payment:
25 [Term] 25.00
7.75 [Int] CdA 7.75
[Pmt] “run” 713.69
Finding a Term of a Loan
How long does it take to pay off a loan
of $15,000 at 10% interest if you make
payments of $181.01 each month?
Steps/Keystroke Display
1. Clear calculator
[On/C] [On/C] 0.00
2. Enter loan amount, interest, monthly
payment, then find term in years:
15,000 [L/A] 15,000.00
10 [Int] CdA 10.00
181.01 [Pmt] 181.01
[Term] “run” 11.57
3. Find periodic term:
[Term] 138.83
16 — Qualifier Plus
®
IIcx

Finding the Interest Rate of a Loan
Find the interest rate on a $98,500 mort-
gage with a 25 year term and a monthly
payment of $1,150.
Steps/Keystrokes Display
1. Clear calculator:
[On/C] [On/C] 0.00
2. Enter loan amount, term, monthly pay-
ment and find annual interest and peri-
odic rate:
98,500 [L/A] 98,500.00
25 [Term] 25.00
1,150 [Pmt] 1,150.00
[Int] “run” CdA 13.91
[Int] CdA 1.16
Finding a Loan Amount
How much can you borrow if the cur-
rent interest rate is 9.75% on a 25 year
term and you can pay $950 each month?
Steps/Keystrokes Display
1. Clear calculator:
[On/C] [On/C] 0.00
2. Enter interest, term and monthly pay-
ment. Then find loan amount:
9.75 [Int] CdA 9.75
25 [Term] 25.00
950 [Pmt] 950.00
[L/A] “run” 108,236.46
User’s Guide — 17

Non-Monthly Loans & Payments Per Year
(Pmt/Yr)
Most residential real estate loans are paid
monthly. If paying a non-monthly loan,
the number of payments per year must
be changed by entering the number of
payments per year, then pressing [Set]
[÷] as shown in the following exercise:
Steps/Keystrokes Display
1. Clear calculator
[On/C] [On/C] 0.00
2. Enter number of payments per year:
4 [Set] [÷] (Pmt/Yr) 4.00
To recall the currently stored number
of payments, press [Rcl] [÷]:
Steps/Keystrokes Display
1. Clear calculator:
[On/C] [On/C] 0.00
2. Recall number of payments per year:
[Rcl] [÷] ( Pmt/Yr )4.00
IMPORTANT:Complete steps 1 and 2
below to return your calculator to 12 pay-
ments per year (default).
Steps/Keystrokes Display
1. Clear calculator:
[On/C] [On/C] 0.00
2. Enter # of payments per year:
12 [Set] [÷] ( Pmt/Yr) 12.00
18 — Qualifier Plus
®
IIcx

Finding a Quarterly Payment
Find the quarterly payment on a 10
year loan of $15,000 with an annual
interest rate of 12%.
Steps/Keystrokes Display
1. Clear calculator:
[On/C] [On/C] 0.00
2. Set to 4 payments per year:
4 [Set] [÷] (Pmt/Yr) 4.00
3. Enter loan amount:
15,000 [L/A] 15,000.00
4. Enter term in years
10 [Term] 10.00
5. Enter annual interest:
12 [Int] CdA 12.00
6. Find quarterly payment:
[Pmt] “run” 644.36
7. Reset to 12 payments per year:
12 [Set] [÷] “run” 12.00
User’s Guide — 19

Sales Price/Down Payment
Review these pointers before working
with Sales Price and Down Payments.
1. When using the [Price],[DnPmt] and
[L/A] keys, enter the two known values
(i.e., Price and Down Payment), then
solve for the third (i.e., Loan Amount),
before calculating financial values.
2. If a Sales Price is entered, it remains con-
stant until you enter a new Sales Price or
precede a Down Payment or Loan
Amount entry with [Set].
Finding L/A Based on Sales Price & Down Pmt
Find the loan amount and dollar down
payment if the Sales Price is $175,000
and you’re putting 20% down.
Steps/Keystrokes Display
1. Clear calculator:
[On/C] [On/C] 0.00
2. Enter sales price:
175,000 [Price] 175,000.00
3. Enter down payment percent and find
loan amount:
20 [Dn Pmt] 20.00
[L/A] 140,000.00
4. Display down payment percent then find
down payment amount:
[Dn Pmt] 20.00
[Dn Pmt] 35,000.00
20 — Qualifier Plus
®
IIcx