QUALIFIER PLUS IICX ® For the Real Estate Professional User’s Guide
TABLE OF CONTENTS 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 . . . . . .
INTRODUCING QUALIFIER PLUS® IICX Created specifically for residential real estate professionals, the enhanced Qualifier Plus IIcx is the simplest calculator ever made for residential real estate financing. With the press of a few buttons, 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.
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.
[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 interest loans. [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.
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. 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.
[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.
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 partially 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.
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 “aftertax” payment. [Set] [Term] Bi-Weekly Mortgage function: Converts between monthly and bi-weekly loans. A second press of [Term] while in biweekly mode, displays the total interest savings. [Set] [ARM] ARM Rate Increase/Decrease: Changes ARM function from increasing to decreasing rate.
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 payments. [Exp] Expense: Enters monthly housing expenses (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 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 permanently stored in memory. 4.
Finding a Monthly Loan Payment Find the monthly payment on a $95,500, 25 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: 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 1.
Finding the Interest Rate of a Loan Find the interest rate on a $98,500 mortgage with a 25 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 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 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] CdA 12.00 6. Find quarterly payment: [Pmt] “run” 644.36 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 25 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: 25 [Term] 25.00 9 [Int] CdA 9.00 [Pmt] “run” 1,034.
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 PITH 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 THE 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: [Rcl] [Mtg Ins] 0.
Total PITH Payment with Percentages Find both the P&I and PITH payment on a new home priced at $125,000, with a 5% down payment at 8.75% interest for a term of 25 years, given a 1% annual property tax, 0.25% annual property insurance and monthly heating expense of $80. 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 monthly heating expense: 80 [Exp] 80.00 5. Enter annual interest, then term in years: 8.
Total PITH Payment with Dollar Values Find both the P&I and PITH payment on a new home selling for $134,000, and a 15% down payment at 7.75% interest for a term of 25 years, given an estimated annual property tax of $1,200, a yearly $350 property insurance premium and a monthly heating expense of $100. 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 monthly heating expense: 100 [Exp] 100.00 5.
Amortization & Remaining Balance Using the amortization function, you can find the total interest, principal and remaining balance for an entire loan, a range of payments/years, or an individual payment/year, for fully or partially amortized loans. 1. When entering a range of payments using the Colon [:] key, all three possible outputs: Interest, Principal and Remaining Balance, can be found without having to re-enter the range each time. 2.
5. In some cases, a final, regular P&I payment is included in the “balloon payment.” Neither calculator includes this. While calculating the remaining balance; only the remaining principal balance is calculated. 6. If the first loan payment begins in a month other than January, reset the Month Offset value to calculate the correct number of periods in the amortization range. To change this setting, press the month number, then [Set] [:]. For example, if the first payment begins in April, press 4 [Set] [:].
Total Principal/Total Interest for a Loan Find the total interest payed on a $200,000 loan at 9.25% interest over 25 years? Steps/Keystrokes Display 1. Turn calculator off then back on: [Off] [On/C] CdA 0.00 2. Enter loan amount, interest, term, then find monthly payment: 200,000 [L/A] 200,000.00 9.25 [Int] CdA 9.25 25 [Term] 25.00 [Pmt] “run” 1,688.90 3. Find total number of payments: [Amort] “run” 1-300 4. Find total interest paid then total principal paid: [Amort] 306,669.80 [Amort] 200,000.
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 25 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.
Principal/Interest for a Given Payment For a $175,000 loan at 9.25% interest for 25 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 CdA 0.00 2. Enter loan amount, interest, term and find monthly payment: 175,000 [L/A] 175,000.00 9.25 [Int] CdA 9.25 25 [Term] 25.00 [Pmt] “run” 1,477.79 3. Display 1st payment period: 1 [Per] [Amort] “run” 1-1 4.
Principal/Interest – Range of Payments/Years For a $125,000 loan at 10.25% interest for 25 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] CdA 0.00 2. Enter loan amount: 125,000 [L/A] 125,000.00 3. Enter interest, term and find monthly payment: 10.25 [Int] CdA 10.25 25 [Term] 25.00 [Pmt] “run” 1,139.20 4. Enter payment periods 1–9: 1 [:] 9 [Per] [Amort] “run” 5.
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 25 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] CdA 8.75 25 [Term] 25.00 [Pmt] “run” 1,014.
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 and Simple Interest mode.) Steps/Keystrokes Display 1. Set to Simple Interest: [Set] [9] 8.59 2. Clear calculator: [On/C] [On/C] 0.00 3. Set to 1 payment per year: 1 [Set] [÷] 1.00 4.
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] CdA 20.00 2. Find purchase price: [L/A] “run” 5,887.45 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 1. Enter your desired yield: 18 [Int] Display CdA 18.00 2. Find purchase price: [L/A] “run” 5,663.44 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 25 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] CdA 9.00 25 [Term] 25.00 [Pmt] “run” 413.99 3. Recall loan amount and find point cost: [Rcl] [L/A] 50,000.
Qualifying When qualifying a prospective buyer, the [Qual 1] and [Qual 2] keys are used to perform the following qualifying functions: 1. Store a GDSR:TDSR Ratio: The entered ratio will remain in storage until revised or reset. ([Qual 1] defaults to 28%:36% and [Qual 2] to 29%:41%.) Note: The [Qual 2] key stores addi- tional (i.e., U.S. Government, FHA/ VA, etc.), GDSR and TDSR ratios; otherwise it operates exactly as the [Qual 1] key. 2.
3. Find the Minimum Income Required based on loan amount and other entered values when income is zero. 4. Find the Actual GDSR:TDSR Ratio based on loan amount, income and other entered values. Pro–Mode If in “Pro-Mode,” the order in which the information displays will be different. 1. When calculating Annual Income Required, the first press of [Qual 1] or [Qual 2] displays the stored ratios and the second press displays the Annual Income Required. The third press shows the Allowable Monthly Debt. 2.
Setting GDSR:TDSR Qualifying Ratios Enter and permanently store qualifying ratios of 32% for GDSR; 40% for TDSR. Steps/Keystrokes Display 1. Clear calculator: [On/C] [On/C] 2. Set qualifying ratios: 32 [:] 40 [Qual 1] 0.00 32.00 – 40.00 Recalling GDSR:TDSR Qualifying Ratios Recall stored ratios by pressing [Rcl] followed by [Qual 1]. Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] 2. Recall qualifying ratios: [Rcl] [Qual 1] Display 0.00 32.00 – 40.00 Qual.
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. Enter term in years, annual interest and down payment: 25 [Term] 25.00 8.5 [Int] CdA 8.50 35,000 [Dn Pmt] 35,000.00 4. Enter annual income and monthly debts: 45,000 [Inc] 45,000.00 500 [Debt] 500.00 5. Display qualifying ratios and find qualifying loan amount: [Qual 1] 32.00 – 40.00 [Qual 1] “run” 125,728.67 6.
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] 32.00 – 40.00 [Qual 1] “run” 100,582.94 [Price] 135,582.94 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 GDSR and TDSR ratios? Steps/Keystrokes Display 1. Find nonrestrictive loan amount: [Qual 1] “run” – 227,987.99 LA INC 2. Find actual ratios: [Qual 1] “run” 26.76-40.
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” 190,688.49 3. Find nonrestrictive loan amount: [Qual 1] “run” – 227,987.99 INC 4. Display actual qualifying ratios: [Qual 1] 26.76 – 40.00 5. Display stored ratios: [Qual 1] — DO NOT CLEAR THE 32.00 – 40.
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. Recall interest and term: [Rcl] [Int] [Rcl] [Term] CdA 8.50 25.00 6. Display qualifying ratios: [Qual 1] 32 : 40 7. Find qualifying loan amount: [Qual 1] “run” 156,641.01 8. Find Price: [Price] — DO NOT CLEAR 176,641.01 THE CALCULATOR — Now find the monthly payment and PITH payment based on the entered tax and insurance. Steps/Keystrokes Display 1. Find P&I payment: [Pmt] “run” 1,289.07 2.
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 heating expense of $50, an interest rate of 7.25% and a 25 year term, what size conventional loan can he qualify for if using 32:40 ratios? What size government loan if using 29%:41% ratios? (Use [Qual 1] for conventional qualifying; [Qual 2] for government qualifying.) Find the monthly payment for each.
4. Find Qual 1 stored ratios then find Qual 1 qualifying loan amount: [Qual 1] 32 : 40 [Qual 1] “run” 90,792.44 5. Find Qual 1 P&I payment, then total payment: [Pmt] 650.00 [Pmt] 700.00 — 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” 94,982.86 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 32:40 ratios, what income must a buyer earn to purchase a $245,000 home if they put down 20%? (Use 8% interest for 25 years.) Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] 2. Enter annual interest: 8 [Int] Display 0.00 CdA 8.00 3. Enter term in years then enter sales price: 25 [Term] 25.00 245,000 [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 heating and other housing expenses, what will this borrower’s ratios be? (Use 10% interest for 25 years.) Steps/Keystrokes 1. Clear calculator: [On/C] [On/C] Display 0.00 2. Enter interest, term, loan amount and annual income: 10 [Int] CdA 10.00 25 [Term] 25.
U.S.-MODE ONLY FUNCTIONS 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).
3. 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 4. Find days between escrow closing and date of 1st payment: 8 [:] 1 [:] 98 [–] 7 [:] 21 [:] 98 [=] 11.00 5. 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.
APPENDIX Default Settings – Performing an All Clear ([Set] [x]) returns these settings to their original values (U.S. settings). ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆ 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 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. 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 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 & Canada Not all countries have CII Authorized Service Providers or the same warranty and service policies.
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.
How to Reach CII Headquarters Mail Calculated Industries, Inc. 4840 Hytech Drive Carson City, NV 89706 USA Phone 1-775-885–4900 Fax 1-775-885–4949 Email techsup@calculated.com World Wide Web http://www.calculated.
Qualifier Plus® IIcx and Calculated Industries® are registered trademarks of Calculated Industries, Inc. ALL RIGHTS RESERVED Designed in the United States of America by Calculated Industries, Inc. ©2002, Calculated Industries, Inc.
