Calculated Industries Qualifier Plus IIx DT User manual

USER’S

GUIDE

QUALIFIER P

LUS

®

IIx DT

DESKTOP

MODEL 43285

RESIDENTIAL REAL ESTATE FINANCE CALCULATOR

with exclusive buyer qualifying features

REAL ESTATE MASTER

®

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. With the push of a

few buttons, it will solve hundreds of your real estate problems!

■ 3-Way Mortgage Qualifying

■ Instant P&I and PITI Payments

■ Loan/Mortgage Amounts

■ Expanded Tax & Insurance Capabilities

■ Interest Rates & Terms

■ Built-in Sales Price and Down Payment

■ Complete Amortization

■ Remaining Balances/Balloon Payments

■ Bi-Weekly Loans

■ ARM’s with Lifetime Cap

■ Date Math Functions

■ Future Value and Appreciation

■ And much, much more!

It also works as a standard math calculator with memory, percent,

and Auto Shut-Off.

Note to Users of the Qualifier Plus IIx Handheld Model:

The only difference between the Qualifier Plus IIx desktop model

and the Qualifier Plus IIx handheld model, besides the size, are a

few changes in key locations. The desktop model has room for ded-

icated [ARM Cap], [Bal] (Remaining Balance), and [APR] keys, while

the handheld model, due to smaller size, lists these calculations over

other keys as 2nd functions, allowing access via the [Set] key.

1 – User’s Guide

Table of Contents

Getting Started

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Key Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Decimal Place Selection . . . . . . . . . . . . . . . . . . . . . . . .10

Basic Math . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Percentage Calculations . . . . . . . . . . . . . . . . . . . . . . . .11

Date Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Using the Memory Function . . . . . . . . . . . . . . . . . . . . .13

Using the Qualifier Plus

®

IIx DT

Mortgages & Real Estate Loans . . . . . . . . . . . . . . . . . . .14

Non-Monthly Loan & Payments Per Year . . . . . . . . . . . . .16

Sales Price/Down Payment . . . . . . . . . . . . . . . . . . . . . .17

Taxes & Insurance/PITI Payment . . . . . . . . . . . . . . . . . .19

Amortization & Remaining Balance . . . . . . . . . . . . . . . .23

Future Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

Trust Deeds & Discounted Notes . . . . . . . . . . . . . . . . . .29

Annual Percentage Rate (APR) . . . . . . . . . . . . . . . . . . .31

Odd Days Interest & APR . . . . . . . . . . . . . . . . . . . . . . .32

Bi-Weekly Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

Adjustable Rate Mortgages . . . . . . . . . . . . . . . . . . . . . .35

Qualifying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38

Qualifying Examples . . . . . . . . . . . . . . . . . . . . . . . . . .39

Appendix

Calculator Information . . . . . . . . . . . . . . . . . . . . . . . . .46

Limited Warranty . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

2 – Qualifier Plus

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IIx DT

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. Pressing [Set] [M+] will

subtract the displayed value from memory.

[Rcl] Recall — Recalls and displays the contents of

the memory (press [Rcl] [M+]) or financial regis-

ters. Pressing [Rcl] twice in a row displays and

clears the memory.

[Pmt] Payment — Enters or solves for the periodic

principal and interest (P&I) payment. Pressing a

second time in succession calculates PITI

(including property tax, insurance, mortgage

insurance and expenses, if entered).

[FV] Future Value — Enters or solves for the future

value of a financial problem.

G

ETTING

S

TARTED

3 – User’s Guide

[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 inter-

est 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.)

[APR] Annual Percentage Rate — Calculates APR (for

fixed rate loans only) based on the entry of

points and/or non-recurring loan fees paid at

initiation. Cannot be used for ARMS.

[Per]

Period — Used to specify a mortgage component

(Term or Interest) or amortization/remaining bal-

ance value as per period rather than per year. For

example, 360 [Per] [Term] enters 360 periods.

[Price] Sales Price — Enters or calculates a Sales Price

(based on the entries of Loan Amount, or equiv-

alent mortgage components) and Down

Payment. Note: Entered Sales Price values will

not normally change.

[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 sec-

ond press toggles the entered down payment

from dollar figure to percent or vice versa. Any

number under 100 is assumed to be a percent

down payment.

[Amort] Amortization — Finds total interest, principal

and remaining balance. First press enters or

shows range of periods. Second press shows

4 – Qualifier Plus

®

IIx DT

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.

[:] Colon — Used to specify a range for amortiza-

tion or to separate ARM Int: Term and Qualifying

Income: Debt ratios entries. Also used to sepa-

rate values in a date entry.

[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 1 [:] 1 [ARM]. By using the [Set] [ARM]

function, you can easily adjust the rate up or

down to display future payments. (ARM rates are

stored permanently.)

[ARM Cap]

Lifetime Interest Cap (ARMs) — Sets the lifetime

interest cap for ARMs by entering the maximum

interest increase. This is a permanent setting; to

clear, set the cap back to zero (0 [ARM Cap]).

[Tax] Property Tax — Stores and recalls annual prop-

erty tax in either percent or dollar amount. If

entered as a dollar amount, a second press con-

verts 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.

5 – User’s Guide

[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. However, if entered

as a percentage of sales price or loan amount,

these items will automatically be re-calculated

if sales price or loan amount are changed.

[Set] Used to permanently set the number of dis-

played decimal places (see the section on

Decimal Place Selection). Also works with other

keys to set or activate additional functions.

(Think of it as a “shift” key on a typewriter.) It

will perform the function printed above the key

on the calculator’s face. A small boxed “S” will

appear in the upper-left side of your display

when this key has been pressed.

[Set] [÷] Payments per Year — Used to set the number of

payment periods per year. Default value is 12,

for monthly. Note that if you change this setting,

it will remain permanently stored even if you

turn the calculator off. You must perform an All-

Clear ([Set] [x]), or reset to 12 payments per year

(12 [Set] [÷]).

[Set] [x] All-Clear — Clears and resets the calculator to

its default settings and values. Use this only with

caution as it will reset ratios, periods per year,

etc. back to default settings (see the appendix

for a list of these settings).

6 – Qualifier Plus

®

IIx DT

[Set] [+] Pro-Mode — Activates Pro-Mode. An advanced-

user 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. The Pro-Mode

also changes the order that qualifying values are

displayed using the [Qual 1] and [Qual 2] keys,

by showing the lower, or restrictive amount with

the first press, the higher, or non-restrictive

amount with the second press, the buyer’s actu-

al ratios with the third press, and the stored

income and debt ratios with the fourth.

[Set] [–] Change sign — Toggles the sign of the dis-

played value from positive to negative or from

negative to positive.

[Set] [:] Month Offset — Used to set the first month of

payment if other than January. Used for calcu-

lating annual amortization ranges.

[Set] [000] Odd Days Interest — Calculates the pre-paid

interest, or simple interest accumulated (based

on a 360 day year) during the days before the

first loan payment is made using the interest rate

stored in the Interest register.

[Set] [Pmt] Estimated After-Tax Payment — Calculates an

estimated “after-tax” payment if loan variables

and property taxes are entered. You must enter

a tax bracket, then press [Set] [Pmt] to display

the annual tax deduction; second consecutive

press will display the monthly tax deduction;

third press will display the “after-tax” payment.

[Set] [Term] Bi-Weekly mortgage function — Converts regu-

lar monthly loan to bi–weekly. Pressing [Set]

[Term] displays the reduction in term. Second

press of [Term] shows total interest savings.

7 – User’s Guide

Pressing [Set] [Term] again will return and re-cal-

culate 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 quali-

fying. Entered ratios are separated by the Colon

[:] key. For example, income and debt ratios of

28% and 36%, respectively, are entered and

permanently stored as follows: 28 [:] 36 [Qual 1].

Default income and debt ratios for this key are

28% and 36%, respectively. You may change

qualifying ratios, if desired.

2) Calculates the maximum loan amount for

which a buyer may qualify for based on the

stored income and debt qualifying ratios and

the entered:

• term

• interest

• annual income

• monthly debt

— and optional—

• annual tax and insurance

• monthly housing expenses

First press of [Qual 1] displays stored qualifying

ratios; 2nd press calculates the qualifying loan

amount; 3rd press calculates the “non-restrictive”

qualifying loan amount; 4th press calculates the

borrower’s actual income & debt ratios. Note that

the loan amount displayed is the lower, or

“restrictive” of the two possible loan amounts

8 – Qualifier Plus

®

IIx DT

(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).

3) Calculates the annual income required and

allowable monthly debt for a desired loan

amount or sales price based on the stored

income and debt qualifying ratios and the

entered:

• term

• interest

• price (down payment) or loan amount

4) Also finds buyer’s actual income and debt

ratios given both buyer and property data.

First press of [Qual 1] displays stored qualifying

ratios; 2nd press calculates the buyer’s actual

ratios.

[Qual 2] Stores additional (e.g., Government FHA/VA)

Income and Debt ratios and operates identically

to [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 debts.

In addition to Qualifying, the following keys are also involved

in PITI calculations (e.g., they are added to the monthly pay-

ment to calculate the total PITI payment):

[Exp] Expense — Enters monthly housing expenses

(e.g., homeowners’ association dues, mainte-

nance and utilities).

9 – User’s Guide

[Mtg Ins] Mortgage Insurance — Stores and recalls annu-

al mortgage insurance (i.e., Private Mortgage

Insurance) in either percent or dollar amount. If

entered as a dollar amount, a second press con-

verts 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.

Note: Tax & Insurance entered as dollar

amounts will remain fixed, even if sales price

or loan amount is changed.However, if entered

as a percentage of sales price or loan amount,

these items will automatically be re-calculated

if sales price or loan amount are changed.

Decimal Place Selection

With the [Set] key, you have the option of permanently selecting

the number of decimal places displayed. The values are rounded

using conventional 5/4 rounding. You can do this prior to finding

an answer or afterwards.

Press [Set] followed by the number of decimal places you wish to

display:

[Set] 4 0.0000

[Set] 3 0.000

[Set] 2 0.00

[Set] 1 0.0

[Set] 0 0.

To return to the standard two decimal place setting, you must

press [Set] 2, or press [Set] [x] for All-Clear.

10 – Qualifier Plus

®

IIx DT

Basic Math

This calculator uses standard chaining logic which simply means

that you enter your first value, the operator (+, –, x, ÷), the sec-

ond value and then the equals sign (“=”).

A. 3 [+] 2 [=] 5

B. 3 [–] 2 [=] 1

C. 3 [x] 2 [=] 6

D. 3 [÷] 2 [=] 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. 800 [x] 25 [%] [=] 200.00

B. 250 [+] 10 [%] [=] 275.00

C. 25 [–] 50 [%] [=] 12.50

D. 200 [÷] 50 [%] [=] 400.00

11 – User’s Guide

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 fol-

lows: Numerical Month [:], Numerical Day [:], and Numerical Year.

The date function lets you: 1) add a number of days to a date

to find a second date (in the future), 2) subtract a number of days

from a date to find a second date (in the past), and, 3) subtract

one date from another date to find the number of days in

between. For example, if a 45-day escrow begins April 28, 1998,

what is the closing date?

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Enter month 4 [:] 4-

Enter day 28 [:] 4-28-

Enter year 98 4-28-98

Add 45 days [+] 45 [=] 6-12-98

Find the number of days to calculate prepaid interest due at

closing, if the escrow closing date is 10/14/99 and the first

payment is due 11/1/99.

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Enter 1st payment date 11 [:] 1 [:] 99 11-1-99

Subtract closing date to find

number of days [-] 10 [:] 14 [:] 99 [=] 18.00

12 – Qualifier Plus

®

IIx DT

Using the Memory Function

Whenever the [M+] key is pressed, the displayed value will be

added to memory. Other memory functions:

Function Keystrokes

Recall total in memory [Rcl] [M+]

Display & clear memory [Rcl] [Rcl]

Clear memory, no display [Set] [Rcl]

Subtract displayed value from memory [Set] [M+]

Replace memory with displayed value [Set] [Rcl] [M+]

The memory is semi-permanent; it will only be cleared when you:

1) turn off the calculator;

2) press [Rcl] [Rcl];

3) press [Set] [Rcl];

4) press [Set] [x] (all clear).

How to use memory functions:

Steps Keystrokes Display

Enter into memory 355 [M+] 355.

Enter into memory 255 [M+] 255.

Recall total in memory [Rcl] [M+] 610.

Subtract from mem. 745 [Set] [M+] 745.

Recall total in memory [Rcl] [M+] – 135.

Replace memory 50 [Set] [Rcl] [M+] 50.

Recall & clear [Rcl] [Rcl] 50.

M

13 – User’s Guide

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. It is a good practice to press [ON/C] twice after completing

a financial problem to ensure that you have cleared volatile

financial registers.

5. When solving for a financial component, the calculator will

display the word “run” in the display. Solving for interest

may take several seconds (up to 15) while the word “run”

displays.

6. Once you have calculated an answer, for example, a pay-

ment, you can then go back and change any variable and

recalculate your new answer without re-entering all the

other data.

Finding a Monthly Loan Payment

Find the monthly payment on a 30-year loan of $95,500 at

7.75% annual interest rate.

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Enter loan amount 95,500 [L/A] 95,500.00

Enter term 30 [Term] 30.00

Enter interest 7.75 [Int] 7.75

Find monthly payment [Pmt] “run” 684.17

U

SING YOUR

Q

UALIFIER

P

LUS

®

II

X

DT

14 – Qualifier Plus

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IIx DT

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 Display

Clear calculator [On/C] [On/C] 0.00

Enter loan amount 15,000 [L/A] 15,000.00

Enter interest 10 [Int] 10.00

Enter monthly payment 181.01 [Pmt] 181.01

Find term in years [Term] “run” 11.78

Find periodic term [Term] 141.35

Finding the Interest Rate of a Loan

Find the interest rate on a mortgage where the loan amount is

$98,500, term is 30 years and payment is $1,150 a month.

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Enter loan amount 98,500 [L/A] 98,500.00

Enter term 30 [Term] 30.00

Enter monthly payment 1,150 [Pmt] 1,150.00

Find annual interest [Int] “run” 13.78

Find periodic interest [Int] 1.15

Finding a Loan Amount

How much could you borrow if the interest rate was 9.75% on

a 30-year term and you could pay $950 each month?

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Enter interest 9.75 [Int] 9.75

Enter term 30 [Term] 30.00

Enter monthly payment 950 [Pmt] 950.00

Find loan amount [L/A] “run” 110,573.84

15 – User’s Guide

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 exam-

ple, here’s how to set your calculator to four payments per year.

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Enter # of payments/year 4 [Set] [÷] 4.00

To recall the currently stored number of payments:

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Recall # of payments/year [Rcl] [÷] 4.00

IMPORTANT: To return the payments per year to the default value of

12, you must do the following steps (or perform an All-Clear [Set] [x]).

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Enter # of payments/year 12 [Set] [÷] 12.00

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

Clear calculator [On/C] [On/C] 0.00

Set to 4 payments/year 4 [Set] [÷] 4.00

Enter loan amount 15,000 [L/A] 15,000.00

Enter term in years 10 [Term] 10.00

Enter annual interest 12 [Int] 12.00

Find quarterly payment [Pmt] “run” 648.94

Reset to 12 payments/year 12 [Set] [÷] “run” 12.00

16 – Qualifier Plus

®

IIx DT

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 recom-

mended that you always enter the two known values

(Price and Down Payment), then solve for the third (Loan

Amount), before calculating financial values.

2. If a Sales Price has been specifically entered, it will only

change when you enter a new Sales Price or by preceding

the entry of Down Payment or Loan Amount with [Set].

Finding L/A Based on Sales Price & Down Pmt

Find both the loan amount and dollar down payment if the

Sales Price is $175,000 and you’re planning to put 20% down.

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Enter sales price 175,000 [Price] 175,000.00

Enter down payment % 20 [Dn Pmt] 20.00

Find loan amount [L/A] 140,000.00

Display down payment % [Dn Pmt] 20.00

Find down payment [Dn Pmt] 35,000.00

17 – User’s Guide

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 Display

Clear calculator [On/C] [On/C] 0.00

Enter loan amt 125,000 [L/A] 125,000.00

Enter down pmt % 20 [Dn Pmt] 20.00

Find sales price [Price] 156,250.00

Enter term 30 [Term] 30.00

Enter interest 9 [Int] 9.00

Find monthly payment [Pmt] “run” 1,005.78

18 – Qualifier Plus

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IIx DT

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 Pro-

Mode ([Set] [+]) to permanently store Tax & Insurance. (See the

“Pro-Mode” example in the “Qualifying Examples” section.)

If entered as percentages, the Sales Price or Loan Amount can be

changed and tax and insurance will be recalculated automatical-

ly. If entered as dollar amounts, they will need to be re-entered

for a change in Sales Price or Loan Amount to be correct. Entering

a number 10 or less is assumed to be an annual percentage.

IMPORTANT: Both Tax and Property Insurance rates are based on

Sales Price. Mortgage Insurance rate is based on the Loan Amount.

If neither Sales Price nor Down Payment has been entered, the

Sales Price is defaulted to equal the Loan Amount (basically

assuming a 100% loan), in which case the Tax and Insurance rates

will be based on the Loan Amount value entered.

Setting Tax and Insurance Rates

Enter an annual property tax rate of 1%, a property insurance

rate of .25% and a mortgage insurance rate of .15%:

Steps Keystrokes Display

Clear calculator [On/C] [On/C] 0.00

Set tax rate 1 [Tax] 1.00

Set insurance rate .25 [Ins] 0.25

Set mortgage ins. rate .15 [Mtg Ins] 0.15

— DO NOT CLEAR CALCULATOR —

19 – User’s Guide

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