I need to manually calculate an apr on a loan where the origination fee has changed during the term of the loan.
2006-09-29 02:53:07 · 4 answers · asked by katand75 1 in Business & Finance ➔ Credit
What state are you in? The origination fee should never change over the term of a loan...I believe that is a RESPA violation. Sorry Derrick, but the origination DOES affect the APR, as it is a cost of financing.
2006-09-29 02:58:37 · answer #1 · answered by naughty_mattress_monkey 4 · 0⤊ 0⤋
The apr is expression of the beneficial amount of the loan. You need a financial calculator or a mortgage web sight to get it right. For example $100,000 loan at 6% for 30 years has a monthly payment of $599.55 of Principal and interest. If there were $6,000 in cost of the loan the apr would be 6.59%. This is $94,000 loan with a 599.55 payment over 30 years. The origination fee in a mortgage is tax deductible over the term of the note as it is a prepayment of interest.
Hope this helps
2006-09-29 03:35:02 · answer #2 · answered by golferwhoworks 7 · 0⤊ 1⤋
the origination fee should not effect your apr
2006-09-29 02:54:34 · answer #3 · answered by Anonymous · 0⤊ 1⤋
example I have $604,000 loan amount with 30years fixed rate with 5%note rate, 1%point, 1.5% other cost what will be my APR?
2016-05-24 06:24:57 · answer #4 · answered by Simoun 1 · 0⤊ 0⤋