USER’S GUIDE REAL ESTATE MASTER ® QUALIFIER PLUS IIx DT ® DESKTOP MODEL 43285 RESIDENTIAL REAL ESTATE FINANCE CALCULATOR with exclusive buyer qualifying features
Introduction QUALIFIER PLUS® IIX DT Created specifically for residential real estate professionals, the newly-enhanced Qualifier Plus IIx DT is the simplest calculator ever made for residential real estate financing.
Table of Contents Getting Started Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Key Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Decimal Place Selection . . . . . . . . . . . . . . . . . . . . . . . .10 Basic Math . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Percentage Calculations . . . . . . . . . . . . . . . . . . . . . . . .11 Date Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GETTING STARTED Key Definitions [+] [–] [x] [÷] [=] Arithmetic operation keys. [0] – [9] & [000] Digits used for keying-in numbers. [•] Decimal point. [Off] Turns all power off. The memory and most financial registers are cleared. [On/C] If off, turns power on. If on, a single press clears the last entry while a second press in succession clears non-permanent registers. [%] Percent — Four-function (+, –, x, ÷) percent key. [M+] Memory — Adds a displayed number to the independent memory.
[L/A] Loan Amount — Enters or solves for the initial loan amount or present value of a financial problem. [Int] Interest — Enters or solves for the annual interest rate. A second press of this key gives you the periodic rate. (Stored permanently, until you change it.) [Term] Enters or solves for number of years. Second press gives number of periods. (Stored permanently.
total interest for period range, third press shows total principal for range, and final press gives remaining balance at end of range. [Bal] Remaining Balance — 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 [Per] key). Note that you can also see the Remaining Balance by cycling through the [Amort] key.
[Ins] Property Insurance — Stores and recalls annual property 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 annual dollar amount. Entering the number 10 or less is assumed to be an annual percentage. Calculated from the sales price. Note: Tax & Insurance entered as dollar amounts will remain fixed, even if sales price or loan amount is changed.
[Set] [+] Pro-Mode — Activates Pro-Mode. An advanceduser feature, it changes Tax and Insurance, and Mortgage Insurance keys from temporary to permanent entries. That is, entered values will remain set even after pressing [On/C] [On/C] or turning calculator off, then on.
Pressing [Set] [Term] again will return and re-calculate to the original term. [Set] [ARM] ARM Rate Increase/Decrease — Changes ARM rate from increasing to decreasing. Qualifying Keys [Qual 1] A multi-function key which, based on entered variables, performs the following qualifying functions: 1) Stores income and debt ratios for loan qualifying. Entered ratios are separated by the Colon [:] key.
(based either on the income ratio or the debt ratio). The “non-restrictive” loan amount (the other side) can be found by pressing [Qual 1] a third time. The calculator will display the loan amount with a negative sign (—) and the word “INC” or “DEBT” to indicate the restrictive side (income or debt).
[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 annual dollar amount. Entering the number 10 or less is assumed to be an annual percentage. Calculated from the loan amount.
Basic Math This calculator uses that you enter your ond value and then A. 3 [+] 2 B. 3 [–] 2 C. 3 [x] 2 D. 3 [÷] 2 standard chaining logic which simply means first value, the operator (+, –, x, ÷), the secthe equals sign (“=”). [=] 5 [=] 1 [=] 6 [=] 1.5 Percentage Calculations The percent [%] key can be used for finding a given percent of a number or for working add-on, discount or division percentage calculations. A. B. C. D.
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.
Using the Memory Function Whenever the [M+] key is pressed, the displayed value will be added to memory.
USING YOUR QUALIFIER PLUS® IIX DT Mortgages & Real Estate Loans 1. The financial functions — L/A, Pmt, Int, Term — work just like you would say them. For example, if you wanted to borrow $100,000 for 30 years at 10% interest, just enter those three known variables and press the key for the unknown fourth variable: Payment. 2. Financial values may be entered in any order you want. 3. Values for Term and Interest are permanently stored in memory. 4.
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 Keystrokes Clear calculator Enter loan amount Enter interest Enter monthly payment Find term in years Find periodic term [On/C] [On/C] 15,000 [L/A] 10 [Int] 181.01 [Pmt] [Term] [Term] Display 0.00 15,000.00 10.00 181.01 “run” 11.78 141.
Non-Monthly Loans & Payments Per Year Most residential real estate loans are paid off monthly. However, if you have a non-monthly loan, you must change your number of payments per year using a two-key sequence: [Set] [÷]. For example, here’s how to set your calculator to four payments per year. Steps Keystrokes Clear calculator Enter # of payments/year [On/C] [On/C] 4 [Set] [÷] Display 0.00 4.
Sales Price/Down Payment One of the unique features of this calculator is its ability to work with not only loan amounts, but with Sales Price and Down Payments as well. Notes on Sales Price/Down Payment 1. When using [Price], [DnPmt] and [L/A] keys, it’s recommended that you always enter the two known values (Price and Down Payment), then solve for the third (Loan Amount), before calculating financial values. 2.
Finding Sales Price & Monthly Payment Based on L/A & Down Pmt Find your maximum sales price if you’ve been approved for $125,000 loan and plan to put 20% down, and then find your monthly payment at 9% interest over 30 years. Steps Keystrokes Clear calculator Enter loan amt Enter down pmt % Find sales price Enter term Enter interest Find monthly payment [On/C] [On/C] 125,000 [L/A] 20 [Dn Pmt] [Price] 30 [Term] 9 [Int] [Pmt] 18 – Qualifier Plus® IIx DT Display 0.00 125,000.00 20.00 156,250.00 30.00 9.
Taxes & Insurance/PITI Payment This calculator has keys that temporarily store Property Tax, Property Insurance and Mortgage Insurance rates to allow you to calculate a PITI (Principal, Interest, Taxes & Insurance) payment in addition to the regular P&I payment. These figures can be entered as dollar amounts or percentages. Monthly expenses that you enter (if any) are included in the PITI payment. You can use the ProMode ([Set] [+]) to permanently store Tax & Insurance.
Recalling Tax and Insurance Rates Recall your stored rates: Steps Keystrokes Recall Tax rate Recall Insurance rate Recall Mortgage Ins. rate [Rcl] [Tax] [Rcl] [Ins] [Rcl] [Mtg Ins] Display 1.00 0.25 0.15 Note: Pressing [On/C] [On/C] will set [Tax], [Ins] and [Mtg Ins] registers to zero. When in Pro-Mode ([Set] [+]), these become permanent entries that can only be cleared by an All-Clear ([Set] [x]) or by entering zeroes into the registers.
Total PITI Payment with Dollar Values Find both the P&I and PITI payment on a new home with a $134,000 selling price, 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 Clear calculator Set tax figure Set insurance figure Enter annual interest Enter term in years Enter sales price Enter down pmt Find loan amount Find P&I payment Find PITI payment [On/C] [On/C] 1,200 [Tax] 350 [Ins] 7.
Estimated “After-Tax” Payment Note:This “after-tax” payment calculation is only an estimate, since it does not include adjustments for specific tax variables for an individual’s situation, different applications of tax laws, etc. The individual should consult a tax specialist when figuring accurate and detailed tax information. Buyers in an approximate 28% income tax bracket are looking to finance a $150,000 mortgage for 30 years at 9.75% annual interest.
Amortization & Remaining Balance The amortization function is quick and simple. It allows you to find total interest and principal (and remaining balance) for an entire loan, for any individual payment or individual year, or any range of payments or range of years, for fully or partially amortized loans. Notes on Amortization 1.
[Set] and [:] keys. This allows you to calculate the correct number of periods in the amortization range. For example, if the first payment of a loan begins in April, the value stored in the month offset would be 4 (4 [Set] [:]). If requesting amortization values for year 1 (1 [Amort]), the amortization of periods 1-9 would be displayed. Year 2 (2 [Amort]) would display values for periods 10-21. Turning your calculator off and back on returns the Month Offset to one (January).
Total Principal & Interest for an Individual Year using Month Offset The first payment of a loan 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? The second year? (First find monthly payment to “set-up” this loan.) Steps Keystrokes Clear calculator Set Month Offset to May Enter loan amount Enter interest Enter term Find monthly payment Enter Yr. 1 Find total interest in Yr. 1 Find total principal in Yr. 1 Enter Yr.
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 Display Clear calculator Enter loan amount Enter interest Enter term Find monthly payment Display 1st pmt period Find interest 1st pmt Find principal 1st pmt Display 2nd pmt period Find interest 2nd pmt Find principal 2nd pmt — DO NOT [Off] [On/C] 0.00 175,000 [L/A] 175,000.00 9.25 [Int] 9.25 30 [Term] 30.
Principal/Interest — Range of Payments/Years For a $125,000 loan at 10.25% interest for 30 years, find out how much interest and how much principal you’ll pay in payments 1-9 and years 1-10. Steps Keystrokes Clear calculator Enter loan amount Enter interest Enter term Find monthly payment Enter pmt periods 1-9 Find interest Find principal Enter years 1-10 Find interest Find principal [Off] [On/C] 125,000 [L/A] 10.
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 periods to one per year.) Steps Keystrokes Clear calculator Set to 1 pmt/yr Enter present value Enter term in years Enter appreciation rate Find future value Set back to 12 pmts/yr [On/C] [On/C] 1 [Set] [÷] 200,000 [L/A] 3 [Term] 8.
Trust Deeds & Discounted Notes Your calculator easily handles trust-deed purchase price and yield problems. Two things to remember 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.
Finding the Yield on a Discounted Note An individual wants to sell you a note under the following terms: 60 months remaining in the term, a face amount when due of $7,500, 10% interest-only payments of $62.50 (incoming). He says he will sell this note to you for $6,500 if you buy today.
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] (APR) to solve APR, then press [Int] a second time (in succession) to display the total finance charges, and a third time to display total finance charges plus principal.
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).
Now, without clearing the calculator, add the pre-paid interest to the loan’s points and fees if they are equal to 1.5% and $500, respectively. Then find the Annual Percentage Rate (APR), based on these closing costs. Steps Keystrokes Display Store the pre-paid interest in memory [M+] 259.72 Find Loan Costs: Recall loan amount Find point cost Add fees Add prepaid interest stored in memory Find APR for this loan [Rcl] [L/A] [x] 1.5 [%] [=] [+] 500 [=] [+] [Rcl] [M+] [=] [Set] [Int] 100,000.00 1,500.
Bi-Weekly Loans Your calculator includes a built-in Bi-Weekly loan function ([Set] [Term]) which allows you to convert established, fully amortized monthly loans into bi-weeklies (in which one-half the monthly payment is made every two weeks). Because you make two extra half-payments per year (since 26 bi-weekly payments is like making 13 regular monthly payments), these kind of loans can amount to large interest savings and a substantial reduction in the time it takes to pay them off.
Adjustable Rate Mortgages Using the [ARM] key, you can quickly and simply find the “adjusted” payments for future years on fully and partially amortized Adjustable Rate Mortgages. Here are some notes on solving ARM loan using this calculator: 1. You solve the initial ARM payment just as you would for any standard fixed-rate loan — the ARM function is only used for “adjusted” periods. 2. The “split” Interest [:] Term Adjustment entry for ARM should always be entered on an annual basis.
Find initial monthly pmt Enter ARM parameters Find 1st “adj.” payment Find 2nd “adj.” payment Find princ. at start of year Recall current interest rate Recall remaining term [Pmt] 1 [:] 1 [ARM] [ARM] [ARM] [Rcl] [L/A] [Rcl] [Int] [Rcl] [Term] “run” 1,322.23 1.00 – 1.00 “run” 1,445.79 “run” 1,570.86 173,350.16 10.25 28.00 ARM Payment — Using Lifetime Cap Using the previous loan, add a lifetime cap of 4% to the loan and find the adjusted payments through year six.
Decreasing ARM Payment Calculate the initial monthly payment on a 30-year, $85,000 ARM loan at 10% interest, and then find the second and third years’ adjusted payments if the loan’s rate of interest decreases 1% at the end of each year. Steps Keystrokes Clear calculator Enter loan amount Enter term in years Enter annual interest Find initial mo.
Qualifying The Qualifying functions on your calculator let you qualify buyers for mortgage loans in three ways: (1) Loan Amount Available given buyer income and debts, (2) Income Required given loan amount (or price/down payment) and (3) Actual Ratios given both income/debt and property data. Here are some notes on qualifying using your calculator: 1. The [Qual 1] and [Qual 2] keys are multi-function “smart” keys. In other words, they deliver a variety of answers based on what is input, and what is not.
5. When calculating Annual Income Required, (based on entered loan amount or sales price, term, interest and stored qualifying ratios) the first press of [Qual 1 or 2] will display your stored ratios, the second press in succession will display the Annual Income Required, and the third press in succession will show the Allowable Monthly Debt. 6. When calculating buyer’s Actual Ratios based on entered borrower data (i.e., income & debt) and property data (i.e.
Recalling Income/Debt Qualifying Ratios Recall stored ratios: Steps Keystrokes Clear calculator Recall qualifying ratios [On/C] [On/C] [Rcl] [Qual 1] Display 0.00 28.00 – 36.00 Qualifying Loan Amount Based on Income & Debts Given an interest rate of 7.
Re-qualify this buyer assuming $200 per month in additional housing expenses. Steps Keystrokes Display Enter mo. hsg. expenses Display qual. ratios Find new qual. loan amt. Find new price 200 [Exp] [Qual 1] [Qual 1] [Price] 200.00 28.00 – 36.00 92,961.46 127,961.46 “run” Qualifying Loan Amount Based on Income & Debts Buyers who make $68,000 annually with $750 in long-term monthly debts wish to buy a home offered at $200,000. For what loan amount can they qualify? (Use previously stored 7.
Using the “Pro-Mode” Now switch to “Pro-Mode” to change the display order. Steps Keystrokes Set the Pro-Mode “On” Find qualifying loan amt. Find non-restricting L/A Display actual qual. ratios Display stored ratios [Set] [+] [Qual 1] [Qual 1] [Qual 1] [Qual 1] Display Pro On “run” 184,492.74 “run” 226,921.30 INC 22.76 – 36.00 28.00 – 36.
Steps Keystrokes Enter down payment Enter annual income Enter monthly debts Set annual prop. tax rate Set annual prop. ins. rate Set annual mortg. ins. rate Recall interest Recall term Display qual. ratios Find qualifying loan amt. Find Price 20,000 [Dn Pmt] 68,000 [Inc] 750 [Debt] 1 [Tax] .5 [Ins] .25 [Mtg Ins] [Rcl] [Int] [Rcl] [Term] [Qual 1] [Qual 1] [Price] Display 20,000.00 68,000.00 750.00 1.00 0.50 0.25 7.50 30.00 28.00 – 36.00 “run” 149,695.67 169,695.
Steps Keystrokes Clear calculator Enter annual income Enter monthly debts Enter monthly hous. exp. Enter interest Enter term Find Qual 1 stored ratios Find Qual 1 qualif. loan Find Qual 1 P & I payment Find Qual 1 total payment [On/C] [On/C] 36,000 [Inc] 500 [Debt] 50 [Exp] 7.25 [Int] 30 [Term] [Qual 1] [Qual 1] [Pmt] [Pmt] Display 0.00 36,00.00 500.00 50.00 7.25 30.00 28.00 – 36.00 “run” 77,692.53 530.00 580.
Solving for Actual Qualifying Ratios with Borrower & Property Data A buyer who makes $85,000 annually and has $1,000 in longterm monthly debts 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.
APPENDIX Calculator Information The following default settings are built in to this calculator. Performing an All-Clear — [Set] [x] — will return your calculator to these original settings. • 12 Periods per Year • Month Offset of January (1) • Two Fixed Decimal Places • ARM Ratios = 1.00 : 1.
Reset Key If your calculator should ever “lock up,” press Reset—a small hole located below the [Set] key—to perform a total reset. Battery Your calculator is powered by a single 3-Volt Lithium CR-2032 battery. This should last upwards of 3,000 hours of actual use. Should the display become very dim or erratic, replace the battery. Note: Please use caution when disposing of your old batteries, as they contain hazardous chemicals.
WARRANTY Warranty Repair Service — U.S.A. Calculated Industries, Inc. (“CI”) 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, CI at its option will either repair (using new or remanufactured parts) or replace (with a new or remanufactured calculator) the product at no charge.
Repair Service — Outside the U.S.A. To obtain warranty or non-warranty repair service for goods purchased outside the U.S., contact the dealer through which you initially purchased the product. If you cannot reasonably have the product repaired in your area, you may contact CI to obtain current product repair information and charges, including freight and duties.
Legal Notes Software copyrighted and licensed to Calculated Industries, Inc., by Real Estate Master Technologies, LLC, 1999. User’s Guide copyrighted by Calculated Industries, Inc., 1999. QUALIFIER PLUS® and CALCULATED INDUSTRIES® are registered trademarks of Calculated Industries, Inc. ALL RIGHTS RESERVED Looking For New Ideas Calculated Industries, a leading manufacturer of special function calculators and digital measuring instruments, is always looking for new product ideas in these areas.
