Your client is interested in purchasing a $200,000 home. He will purchase this with a $10,000 down payment. The bank is quoting 6.25% on a 30-year mortgage with 1 point and the loan origination fees will cost $350. What is the actual percentage rate (APR)?
In the Mortgage View (available on the menu:
| Variable | Enter |
|---|
| Clear | |
| Loan Type | Conventional |
| Price | 200,000 |
| Down Pmt | 10,000 |
| Down Type | Amount |
| Points% | 1 |
| Fees | 350 |
| Int Rate% | 6.25 |
| Pmt Timing | Monthly |
| Years | 30 |
Compute Payment by scrolling to its variable and choosing Calculate from the menu. The monthly payment is $1,169.86.
On the menu, select Analysis View. The APR calculates automatically. It is 6.363%.
