REAL ESTATE MASTER IIX QUALIFIER PLUS IIX ® ® For the Real Estate Professional User’s Guide
TABLE OF CONTENTS Introducing the Real Estate Master IIx and . . . Qualifier Plus IIx . . . . . . . . . . . . . . . . . . . . . .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 .
INTRODUCING REAL ESTATE MASTER® IIX AND QUALIFIER PLUS® IIX Created specifically for residential real estate professionals, the enhanced Real Estate Master IIx and the Qualifier Plus IIx are the simplest calculators ever made for residential real estate financing. With the press of a few buttons, they solve hundreds of real estate problems.
KEY DEFINITIONS [+] [–] [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 displayed value from Memory. See Memory Functions.
[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 figure 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.
[Per] Period: Specifies a mortgage component (Term/Interest) or amortization/remaining 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, principal and remaining balance. First press enters or shows range of periods. Second press shows total interest for period range.
1 [:] 1[ARM]. Pressing [Set] [ARM] adjusts the rate up or down to show future payments. (ARM rates are stored permanently.) [Ins] Property Insurance: Stores and recalls annual property insurance as 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. Note: Tax & Insurance entered as dollar amounts remain fixed, even if sales price or loan amount are changed.
[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). [Set] [+] Pro-Mode: Toggles the Pro–Mode setting “On” and “Off” (default). An advanced user feature, Pro-Mode changes Tax, Insurance, and on the Qualifier Plus IIx only, Mortgage Insurance to permanent entries.
[Set] [:] Month Offset: Used to set the first month of payment for annual amortization if other than January. [Set] [000] Odd Days Interest: Calculates the prepaid interest, or simple interest accumulated (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.
[Set] [ARM] ARM Rate Increase/Decrease: Changes ARM function from increasing to decreasing rate. [Set] [Amort] Remaining Balance: Displays Remaining Balance when preceded by a single year or range of years (or individual payment or range of payments by using the [Per] key). Continue pressing [Amort] to see the Remaining Balance. Qualifying Keys – “Plus” Model Only [Qual 1] A multifunction key which performs the following qualifying functions: 1. Stores an Income:Debt Ratio: (i.e. 28 [:] 39 [Qual 1]).
[Qual 2] Stores additional (i.e., Government FHA/VA) Income and Debt ratios and operates same as the [Qual 1] key. Default Income and Debt ratios for this key are 29% and 41%, respectively. [Inc] Income: Enters the annual income for loan qualifying. [Debt] Enters long-term monthly debt payments. [Exp] Expense: Enters monthly housing expenses (i.e., homeowners’ association dues, maintenance and utilities). [Mtg Ins] Mortgage Insurance: Stores and recalls annual mortgage insurance (i.e.
OPERATING BASICS Decimal Place Selection You can use the [Set] key to permanently 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] [Set] [Set] [Set] [Set] 3 2 1 0 [•] 0.000 0.00 (Default) 0.0 0. Floating Decimal Note: To return to the standard two decimal place setting, press [Set] 2.
Percentage Calculations The Percent [%] key is used to find a given percent of a number or for working add-on, discount or division percentage calculations. A. B. C. D. 800 250 25 200 [x] [+] [–] [÷] 25 10 50 50 [%] [%] [%] [%] [=] [=] [=] [=] 200.00 275.00 12.50 400.00 Memory Functions Pressing the [M+] key adds the displayed value to Memory. [Set] [M+] subtracts the displayed value from Memory. [Rcl] [M+] recalls and displays the total value in Memory. [Rcl] [Rcl] displays and clears the Memory.
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.
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 payment on a $100,000 loan for 30 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 permanently stored in memory. 4.
Finding a Monthly Loan Payment Find the monthly payment on a $95,500, 30 year loan at 7.75% annual interest. Steps/Keystroke 1. Clear calculator: [On/C] [On/C] 2. Enter loan amount: 95,500 [L/A] Display 0.00 95,500.00 3. Enter term, interest and find the monthly payment: 30 [Term] 30.00 7.75 [Int] 7.75 [Pmt] “run” 684.17 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 1.
Finding the Interest Rate of a Loan Find the interest rate on a $98,500 mortgage with a 30 year term and a monthly payment of $1,150. Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] Display 0.00 2. Enter loan amount, term, monthly payment and find annual interest and periodic rate: 98,500 [L/A] 98,500.00 30 [Term] 30.00 1,150 [Pmt] 1,150.00 [Int] “run” 13.78 [Int] 1.15 Finding a Loan Amount How much can you borrow if the current interest rate is 9.
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 1. Clear calculator [On/C] [On/C] Display 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 1.
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] 12.00 6. Find quarterly payment: [Pmt] “run” 648.94 7. Reset to 12 payments per year: 12 [Set] [÷] “run” 12.
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 constant until you enter a new Sales Price or precede a Down Payment or Loan Amount entry with [Set].
Finding Sales Price and Monthly Payment Based on L/A & Down Pmt Find your maximum Sales Price if approved for a $125,000 loan with a 20% down. Find your monthly payment at 9% interest over 30 years. Steps/Keystrokes Display 1. Clear calculator: [On/C] [On/C] 0.00 2. Enter loan amount: 125,000 [L/A] 125,000.00 3. Enter down payment percent then find sales price: 20 [Dn Pmt] 20.00 [Price] 156,250.00 4. Enter term and interest, then find monthly payment: 30 [Term] 30.00 9 [Int] 9.00 [Pmt] “run” 1,005.
automatically. If entered as dollar amounts, they need to be re-entered with a change in Sales Price or Loan Amount to be correct. The number 10 or less is assumed to be an annual percentage. Note: While in Pro-Mode, tax and insurance entries are permanent. Also, the PITI payment includes monthly expenses. IMPORTANT: Both Tax and (Property) Insurance rates are based on Sales Price. The Mortgage Insurance rate is based on the Loan Amount.
— DO NOT CLEAR CALCULATOR — Recalling Tax and Insurance Rates Recall your stored rates by pressing [Rcl] followed by the [Tax], [Ins], or [Mtg Ins] keys: Steps/Keystrokes Display 1. Recall Tax rate and Insurance rate: [Rcl] [Tax] 1.00 [Rcl] [Ins] 0.25 2. Recall Mortgage Insurance rate: (Qualifier Plus IIx only) [Rcl] [Mtg Ins] 0.
Total PITI Payment with Percentages Find both the P&I and PITI payment on a new home priced at $125,000, with a 5% down payment at 8.75% interest for a term of 15 years, given a 1% annual property tax, 0.25% annual property insurance. Steps/Keystrokes Display 1. Clear calculator: [On/C] [On/C] 0.00 2. Set Tax rate: 1 [Tax] 1.00 3. Set Insurance rate: .25 [Ins] 0.25 4. Enter annual interest, then term in years: 8.75 [Int] 8.75 15 [Term] 15.00 5. Enter sales price: 125,000 [Price] 125,000.00 6.
Total PITI Payment with Dollar Values Find both the P&I and PITI payment on a new home selling for $134,000, and a 15% down payment at 7.75% interest for a term of 30 years, given an estimated annual property tax of $1,200 and a yearly $350 property insurance premium. Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] 2. Set Tax figure: 1,200 [Tax] 3. Set Insurance figure: 350 [Ins] Display 0.00 1,200.00 350.00 4. Enter annual interest, term in years and sales price: 7.75 [Int] 7.75 30 [Term] 30.
Estimated “After-Tax” Payment Buyers in the 28% income tax bracket want to finance a $150,000 mortgage for 30 years at 9.75% interest. If they pay $1,500 in annual property taxes and $350 in annual insurance, find the estimated “after-tax” monthly payment. Note: This “after–tax” payment is an estimation because it does not include tax variables pertaining to an individual’s tax situation, different tax laws, etc. When figuring accurate/detailed tax information, consult a tax specialist.
If the previous loan started in July, find the “after-tax” payment. Steps/Keystrokes Display 1. Set Month 1 Offset to July: 7 [Set] [:] 7.00 2. Enter tax bracket to find annual tax deduction: 28 [Set] [Pmt] 2,255.09 3. Find monthly tax deduction: [Pmt] 4. Find “after-tax” payment: [Pmt] 375.85 1,067.
year, press 10 [Set] [Amort]; to find the remaining balance after the 10th period, press 10 [Per] [Set] [Amort]). 3. Entered ranges are inclusive: That is, a range of 1 to 5 includes year 1 and 5. 4. Entering a numerical value or performing a math operation on the keyboard alters the values (including the default settings) when calculating range of payments. Always specify a range of payments or an individual payment first. 5. In some cases, a final, regular P&I payment is included in the “balloon payment.
[Off] then [On/C], or press 1 [Set] [:]. Total Principal/Total Interest for a Loan Find the total interest payed on a $200,000 loan at 9.25% interest over 30 years? Steps/Keystrokes Display 1. Turn calculator off then back on: [Off] [On/C] 0.00 2. Enter loan amount, interest, term, then find monthly payment: 200,000 [L/A] 200,000.00 9.25 [Int] 9.25 30 [Term] 30.00 [Pmt] “run” 1,645.35 3. Find total number of payments: [Amort] “run” 1-360 4.
Using Month Offset to Calculate Total Principal & Interest for One Year Your first loan payment begins in May. How much total interest and total principal will you pay on a 30 year, $90,000 loan at 8% interest during the first year? (First find the monthly payment to “set up” this loan.) Steps/Keystrokes Display 1. Clear calculator: [On/C] [On/C] 0.00 2. Set Month Offset to May: 5 [Set] [:] 5.00 3. Enter loan amount, interest and term, then find the monthly payment: 90,000 [L/A] 90,000.00 8 [Int] 8.
Principal/Interest for a Given Payment For a $175,000 loan at 9.25% interest for 30 years, find out how much interest and how much principal you pay in the first and second payments. Steps/Keystrokes 1. Clear calculator: [Off] [On/C] Display 0.00 2. Enter loan amount, interest, term and find monthly payment: 175,000 [L/A] 175,000.00 9.25 [Int] 9.25 30 [Term] 30.00 [Pmt] “run” 1,439.68 3. Display 1st payment period: 1 [Per] [Amort] “run” 1-1 4. Find interest and principal on 1st payment: [Amort] 1,348.
Principal/Interest – Range of Payments/Years For a $125,000 loan at 10.25% interest for 30 years, how much interest and principal will you pay in payments 1–9 and years 1–10. Steps/Keystrokes Display 1. Clear calculator: [Off] [On/C] 2. Enter loan amount: 125,000 [L/A] 0.00 125,000.00 3. Enter interest, term and find monthly payment: 10.25 [Int] 10.25 30 [Term] 30.00 [Pmt] “run” 1,120.13 4. Enter payment periods 1–9: 1 [:] 9 [Per] [Amort] “run” 5. Find interest and principal: [Amort] [Amort] 6.
Balloon Payment/Remaining Balance Needed to Pay Off a Loan You are looking at a new home with the following financing available: Loan amount $125,000 at 8.75% amortized over 30 years but due and payable after 10 years. What is the balloon payment (remaining balance) after 10 years? Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] 2. Enter the loan amount: 125,000 [L/A] Display 0.00 125,000.00 3. Enter interest, term then find monthly payment: 8.75 [Int] 8.75 30 [Term] 30.00 [Pmt] “run” 983.38 4.
Future Value Given any four components to a problem which includes a future value, you can calculate the fifth. Appreciation You buy a house for $200,000 and want to know what it will be worth in 3 years figuring an inflation or appreciation rate of 8.5%. (Set pay periods to one per year.) Steps/Keystrokes Display 1. Clear calculator: [On/C] [On/C] 0.00 2. Set to 1 payment per year: 1 [Set] [÷] 1.00 3. Enter present value: 200,000 [L/A] 200,000.00 4. Enter term in years: 3 [Term] 3.00 5.
Trust Deeds & Discounted Notes Two things to remember when calculating trust deed, purchase price and yield problems are: 1) When entering or solving for “yield” or “rate of return,” use the [Int] key, and 2) when entering or solving for “purchase price” or “present value,” use the [L/A] key.
What if you wanted a 20% yield? Leave all of the above data the same and reenter the 20% interest right over the old rate and then re-calculate the loan amount. Steps/Keystrokes Display 1. Enter your new desired rate of return: 20 [Int] 20.00 2. Find purchase price: [L/A] “run” 5,693.80 Finding the Yield on a Discounted Note Someone wants to sell you a note under the following terms: 60 months remaining on the term, a face amount when due of $7,500, 10% interest-only payments of $62.
What should you pay for this trust deed if you desire an 18% yield on your investment? Steps/Keystrokes Display 1. Enter your desired yield: 18 [Int] 2. Find purchase price: [L/A] 18.00 “run” 5,530.99 APR & Total Finance Charges Solving for APR/TFC is done in two steps: 1) you set up the loan just like any other problem (that is, enter three known variables and solve for the fourth) and 2) combine points and fees and press [Set] [Int] to solve APR.
APR Solution You are taking out a real estate loan of $50,000 for 30 years at a quoted rate of 9% interest. The loan cost is quoted as 1.5 points and $250 in fees. Find the APR and total finance charges when these costs are included? Steps/Keystrokes Display 1. Clear calculator: [On/C] [On/C] 0.00 2. Enter loan amount, interest and term, then find monthly payment: 50,000 [L/A] 50,000.00 9 [Int] 9.00 30 [Term] 30.00 [Pmt] “run” 402.31 3. Recall loan amount and find point cost: [Rcl] [L/A] 50,000.00 [x] 1.
Odd Days Interest & APR Odd days interest is the “prepaid” interest accumulated from the date of escrow closing to the first payment date. It is based on straight simple interest calculated for a 360-day year, using the entered interest rate value. This interest is calculated at funding time, and is included in the total cost of the loan, for calculating the Annual Percentage Rate (APR).
2. Enter loan amount, interest, term and find monthly payment: 100,000 [L/A] 100,000.00 8.5 [Int] 8.50 30 [Term] 30.00 [Pmt] “run” 768.91 3. Find days between escrow closing and date of 1st payment: 8 [:] 1 [:] 98 [–] 7 [:] 21 [:] 98 [=] 11.00 4. Find the prepaid interest due at closing: [Set] [000] 259.72 — DO NOT CLEAR THE CALCULATOR — Add the prepaid interest to the loan’s points and fees if they are equal to 1.5% and $500, respectively.
Bi-Weekly Loans The built-in Bi-weekly loan function ([Set] [Term]) converts established, fully amortized monthly loans into bi-weeklies (one-half the monthly payment is made every two weeks). With the addition of two half-payments a year, 26 biweekly payments amount to 13 monthly payments. This means large interest savings and a reduction in pay off time. Bi-Weekly Term Reduction & Payment Find the initial monthly payment on a 30 year, $76,500 mortgage at a 10.25% annual interest rate.
4. Find Bi-Weekly term, then the total interest savings: [Set] [Term] “run” 20.72 [Term] – 62,166.78 5. Find bi-weekly payment: [Pmt] 342.76 Adjustable Rate Mortgages Using the [ARM] key, you can find the “adjusted” payments for future years on fully and partially amortized Adjustable Rate Mortgages. Here are some notes on solving ARM loans: 1. Solve the initial ARM payment as you would any standard fixed-rate loan. The ARM function is only used for “adjusted” periods. 2.
ters, enter the maximum lifetime interest increase then press [Set] [%]. This permanently sets the lifetime cap. To reset the cap to “0,” enter 0 then press [Set] [%], or perform an “All Clear.” Increasing & Decreasing ARM Payment Find the payment for the first three years on a $100,000, 30 year ARM loan staring at 10%, increasing 1% after six months, then decreasing to 1.5% after an additional 12 months. Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] Display 0.00 2.
ARM Payment — Worst-Case Scenario Find the initial monthly payment on a 30 year, $176,000 mortgage at 8.25% annual interest rate. Find the second and third years’ “worst-case” adjusted payments if this ARM loan increases 1% at the end of each year. Find the remaining loan balance, term, and interest rate. Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] Display 0.00 2. Enter loan amount, term and annual interest: 176,000 [L/A] 176,000.00 30 [Term] 30.00 8.25 [Int] 8.25 3.
ARM Payment — Using Lifetime Cap Using the previous loan, add a lifetime cap of 4%, then find the adjusted payments through year six. Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] Display 0.00 2. Enter loan amount, term and annual interest, then find the initial monthly payment: 176,000 [L/A] 176,000.00 30 [Term] 30.00 8.25 [Int] 8.25 [Pmt] “run” 1,322.23 3. Input interest cap: 4 [Set] [%] CAP 4.00 4. Enter ARM parameters then Find 1st — 5th “adjusted” payment: 1 [:] 1 [ARM] 1.00 – 1.
Note: The payment for 4th and 5th adjustments (corresponding to the 5th and 6th years) are the same because the lifetime cap was reached on the 4th adjustment. An “M” for “maximum” displays when the Cap is reached. Before starting a new ARM problem, press 0 [Set] [%] to reset the Cap to “0.” Qualifying — Qualifier Plus IIx Only When qualifying a prospective buyer, the [Qual 1] and [Qual 2] keys are used to perform the following qualifying functions: 1.
The first press of [Qual 1] or [Qual 2] displays the stored ratios, the second press displays the “restrictive” qualifying loan amount, the third press the “nonrestrictive” qualifying loan amount, and the fourth press the buyer’s actual income and debt ratios. 3. Find the Minimum Income Required based on loan amount and other entered values when income is zero. 4. Find the Actual Income:Debt Ratio based on loan amount, income and other entered values.
PITI payment). Taxes and Insurance rates, if applicable, are computed from the Sales Price. Mortgage Insurance is computed from the Loan Amount. Note: All of the example problems in this section are based on the default Income and Debt Ratios of 28% and 36%, respectively. Setting Income/Debt Qualifying Ratios Enter and permanently store qualifying ratios of 28% for Income; 36% for Debt. Steps/Keystrokes Display 1. Clear calculator: [On/C] [On/C] 2. Set qualifying ratios: 28 [:] 36 [Qual 1] 0.00 28.
Qual. Loan Amount Based on Income & Debt What size loan can a buyer qualify for if she earns $45,000/year, has $500/month long term debt and is putting $35,000 down? Loan parameters are a 7.5% interest rate at 30 years and qualifying ratios of 28%:36%. (No Tax and Insurance.) Steps/Keystrokes Display 1. Clear calculator: [On/C] [On/C] 0.00 2. Recall Tax rate, Insurance rate and Mortgage Insurance rate: [Rcl] [Tax] 0.00 [Rcl] [Ins] 0.00 [Rcl] [Mtg Ins] 0.00 3.
Re-qualify this buyer assuming $200 per month in additional housing expenses. Steps/Keystrokes Display 1. Enter monthly housing expenses: 200 [Exp] 200.00 2. Display qualifying ratios, then find new qualifying loan amount and new price: [Qual 1] 28.00 – 36.00 [Qual 1] “run” 92,961.46 [Price] 127,961.46 Qualifying Loan Amount Based on Income/Debt Buyers who make $68,000 annually with $750 in long-term monthly debts wish to buy a home offered at $200,000.
“Nonrestrictive” Qualifying L/A & Actual Ratios The amount calculated in the previous example is the lower, or “restrictive,” ratio. What does the other “nonrestrictive” qualifying ratio calculate to and which side is it based on (i.e., buyer’s income or debt)? What are the buyer’s actual income and debt ratios? Steps/Keystrokes Display 1. Find nonrestrictive loan amount: [Qual 1] “run” – 226,921.30 INC 2. Find actual ratios: [Qual 1] “run” 22.76-36.
Using the “Pro-Mode” Now change the order of the qualifying display using the “Pro-Mode.” Steps/Keystrokes Display 1. Set the Pro-Mode to On: [Set] [+] Pro On 2. Find qualifying loan amount: [Qual 1] “run” 184,492.74 3. Find nonrestrictive loan amount: [Qual 1] “run” – 226,921.30 INC 4. Display actual qualifying ratios: [Qual 1] 22.76 – 36.00 5. Display stored ratios: [Qual 1] — DO NOT CLEAR THE 28.00 – 36.
Important: Be sure to turn the “ProMode” off ([Set] [+]) before continuing to other problems, as it will store future amounts entered into the Tax, Insurance and Mortgage Insurance keys permanently, in addition to changing the sequence the values are displayed using the [Qual 1] and [Qual 2] keys.
3. Set annual property tax rate: 1 [Tax] 1.00 4. Set annual property insurance rate: .5 [Ins] 0.50 5. Set annual mortgage insurance rate: .25 [Mtg Ins] 0.25 6. Recall interest and term: [Rcl] [Int] [Rcl] [Term] 7.50 30.00 7. Display qualifying ratios: [Qual 1] 28.00 – 36.00 8. Find qualifying loan amount: [Qual 1] “run” 149,695.67 9. Find Price: [Price] — DO NOT CLEAR 169,695.67 THE CALCULATOR — Now find the monthly payment and PITI payment based on the entered tax and insurance.
Qualifying for both “Conventional” and “Government” Loans Based on Income, Debt, and Expenses — No Tax/Insurance Given a buyer’s annual income of $36,000, $500/month in long-term debts, monthly homeowners’ association dues of $50, an interest rate of 7.25% and a 30 year term, what size conventional loan can he qualify for if using 28%:36% ratios? What size government loan if using 29%:41% ratios? (Use [Qual 1] for conventional qualifying; [Qual 2] for government qualifying.
4. Find Qual 1 stored ratios then find Qual 1 qualifying loan amount: [Qual 1] 28.00 – 36.00 [Qual 1] “run” 77,692.53 5. Find Qual 1 P & I payment, then total payment: [Pmt] 530.00 [Pmt] 580.00 — DO NOT CLEAR Steps/Keystrokes THE CALCULATOR — Display 1. Find Qual 2 stored ratios: [Qual 2] 29.00 – 41.00 2. Find Qual 2 qualifying loan amount: [Qual 2] “run” 99,680.98 3. Find Qual 2 P&I payment then total payment: [Pmt] 680.00 [Pmt] 730.
Income Required and Allowable Monthly Debt — Sales Price & Down Payment Using 28%:36% ratios, what income must a buyer earn to purchase a $245,000 home if they put down 20%? (Use 8% interest for 30 years.) Steps/Keystrokes Display 1. Clear calculator: [On/C] [On/C] 0.00 2. Enter annual interest: 8 [Int] 8.00 3. Enter term in years then enter sales price: 30 [Term] 30.00 245,000 [Price] 245,000.00 4. Enter down payment percent and find loan amount: 20 [Dn Pmt] 20.00 [L/A] 196,000.00 5.
Solving for Actual Qualifying Ratios — Given Both Borrower & Property Data A buyer with an annual income of $85,000 has $1,000 in long–term monthly debts. He wants to borrow $150,000 to purchase a home. Estimating an additional $300 per month for other housing expenses, what will this borrower’s ratios be? (Use 10% interest for 30 years.) Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] Display 0.00 2. Enter interest, term, loan amount and annual income: 10 [Int] 10.00 30 [Term] 30.
APPENDIX Default Settings – Performing an All Clear ([Set] [x]) returns these settings to their original values. ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ 12 Periods per Year Two Fixed Decimal Places Qual 1 Ratios = 28% : 36%* Qual 2 Ratios = 29% : 41%* Month Offset of January (1) ARM Ratios = 1.00 : 1.00 Pro-Mode “Off” CAP = “0” Battery & Auto Shut-Off – Powered by a single 3-Volt Lithium CR-2032 battery, your calculator provides approximately 800 hours of actual use (1 year plus for most people).
Warranty Repair Service — USA Calculated Industries, Inc. (“CII”) warrants this product against defects in materials and workmanship for a period of one (1) year from the date of original consumer purchase in the U.S. If a defect exists during the warranty period, CII at its option will either repair (using new or remanufactured parts) or replace (with a new or remanufactured unit) the product at no charge.
Non-warranty Repair Service — USA Non-warranty repair covers service beyond the warranty period or service requested due to damage resulting from misuse or abuse. Contact the CII Authorized Service Provider listed on the back page of the User’s Guide to obtain current product repair information and charges. Repairs are guaranteed for 90 days. Repair Service — Outside the USA Not all countries have CII Authorized Service Providers or the same warranty and service policies.
LIABLE FOR DIRECT, INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES RESULTING FROM ANY DEFECT IN THE PRODUCT OR ITS DOCUMENTATION. The warranty, disclaimer, and remedies set forth above are exclusive and replace all others, oral or written, expressed or implied. No CII dealer, agent, or employee is authorized to make any modification, extension, or addition to this warranty.
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