I am new to the APR win calculator, and I am having some issues
here is what I am trying to verify
my loan : Payment $5,159.62 X 35 then 1 balloon of $663,915.65
Amount financed $717,116.59
Finance charge $127,385.76
Disclosed APR 6.042
loan was a refi and was funded and interest collected from 10-15-2010 to 11-01-2010 so I figured 17 odd days, but I apparently am not entering something correctly for the second stream, the ballon payment, I am unsure what to put in the unit block or the stream block, what I had been trying was 1 payment $663,915.65 and 0 and 0, what part am I doing wrong

It would be 36 and 0.

can you explain to me why it is 36 and 0 so I can understand how this works

The balloon payment will take place on the 36th month.

1. Use the "calendar" to calculate the correct unit periods. 1st entry is the loan date the second entry in the 1st payment date. Using the calendar will automatically complete the unit periods for you.
2. First payment stream will be $5,159.62 X 35
3. Second payment stream will be $663,915.65 x 1

Also be sure you are checking the secured by real estate box.

jmysray1- You have two questions on the table:
1. what are you doing wrong (with APRWIN)?, and
2. how does this (the "Fed calendar") work?

Welcome to Appendix J of Reg. Z!

All the mathematical equations and calendar procedures for closed-end credit APR calculations are found in Appendix J. APRWIN was created so bank examiners can test APRs without understanding Appendix J. At the banking industry's request, OCC released APRWIN for general use.

Dan offers good advice for making this no harder than necessary. If you simply use the automatic calendar features of APRWIN, you'll make out fine. When you feed in the date of consummation and the beginning dates of the two streams of payments, APRWIN will calculate the following unit period values:
Stream 1: 1 U/P + 17 odd days
Stream 2: 36 U/P + 17 odd days

If you really want to know how the "Fed calendar" works, the answers are found in Paragraphs (b)(2) through (5) of Appendix J. CAUTION. This is the Bermuda Triangle of Reg. Z--curious bankers wander in and are never seen again!

For our purposes, we can skip ahead to Paragraph (5)(ii)-
If the unit-period is a month, the number of full unit-periods between 2 dates shall be the number of months measured back from the later date. The remaining fraction of a unit-period shall be the number of days measured forward from the earlier date to the beginning of the first full unit-period, divided by 30.

Notice how you start out by counting backwards? This is why most folks never return!

Kidding aside, you're now two steps away from understanding how it works & how you get 36 + 17 as the U/P values for the due date of your balloon payment. You didn't give us the date of the balloon, but if consummation is 10/15/10, it should be 11/1/13. In order to measure the elapsed time (in monthly Unit Periods) from "the later date" (11/1/13) to "the earlier date" (10/15/10), you count off the dates: 11/1/13 back to 10/1/13 is one month, 10/1/13 back to 9/1/13 is a second month, etc. You will run out of whole months when you count back from 12/1/10 to 11/1/10. At this point, your counter shows 36 units. The finishing step is to count forward from "the earlier date" (10/15/10) to the beginning of the first full unit period (11/1/10)--17 days. And...that's how it works!

Please help--I'm trying to use the APRWIN for an adjustable rate mtg and I must doing something wrong.

If it's a 5 yr arm--what values to you enter in the second payment string?

I tried entering what the maximum payment could be after the rate adjusts, but ended up way off.

Please advise---i'm sooooooooo confused.

Since we cannot forecast what the rate will be in 5 years, you would enter the payment amount of current index plus margin, subject to the maximum allowed for caps.

Example. Note rate 5.00%

Current Index = 0.75%, Margin = 3.00% Payment on TIL for 2nd payment stream based on a rate of 0.75%+ 3.00% = 3.75%

1st @ 5.00%
2nd @ 3.75%

Read the OSC to Section 226.17(c)(1), #8 and #10.

Thanks Southern and Richard, now it's finally starting to make some sense. I appreciate your help.

The key to generating the disclosable payment schedule is to pretend that the index value freezes at the level you know at the time the disclosures are calculated. If the index can't change, then the steps in the TIL payment schedule are driven by the other rate change terms of the ARM note: floors, caps, ceilings, etc.

A few reminders:
1. Regardless of the current rules for disclosing payment schedules, you MUST calculate (and retain) the full payment schedule discussed in Comments 8 & 10. The TOP, FC, and APR cannot be calculated unless you know the full payment schedule.

2. Mortgage insurance premiums and other contractual requirements may have to be "layered" over the P&I schedule required by Comments 8 & 10. Additional loan terms of this type will affect the TOP, FC and APR.

3. The payment schedule discussed in Comments 8 & 10 has nothing to do with the "program disclosures" required by Section 226.19(b).

4. Since the disclosable payment schedule is an estimate, the borrower will most-likely pay different amounts - beginning at the time of the first rate/payment change.

Hello:

Can anyone provide insight as to why the odd days interest is added to both the first AND last payment stream?

APRWIN doesn't add interest to anything. The unit period information relates to the additional time--not the interest the borrower pays to get it.

sorry I meant the odd days, not the odd days interest

Appendix J of Regulation Z is the basis for most of the calculations performed by APRWIN. It requires us to measure elapsed time beginning on the date of each payment and counting backwards to the date of consummation. When the unit period (time base) is a month, we count backward month by month from each future date to the same day(s) in the preceding month(s). It's important to note that we are not counting the time forward from payment to payment. Instead, we always count from the future payment due dates backwards all the way to the date of consummation.

An example is probably the best way to illustrate. For simplicity, let's create a loan with two monthly payments--due on 7/16/14 and 8/16/14. If the loan closes on 6/1/14, we count backwards one full month from 7/16 to 6/16. Next, Appendix J tells us to count the odd days by counting forward from 6/1 to 6/16 (15 odd days.) That makes the elapsed time from consummation to the first payment 1 unit period (month) plus 15 odd days. For the second payment, we count backwards from 8/16 to 7/16 to 6/16) and then count forward from 6/1 to 6/16. The result is 2 unit periods plus 15 odd days.

APRWIN allows you to enter the whole unit periods and odd days if you know them. If you use the built-in calendar, it functions just like the example above. When you enter a second payment stream, APRWIN gives you three choices for the unit period values:
1. key in precalculated values,
2. use the built in calendar, or
3. default to one unit period of time from the end of one payment stream to the beginning of the next.

I have a question in regards to APRWIN. Whenever I try to use it, I get an error message, so yesterday I went to the OCC website to see if there had been any updates, etc. Mine was the most current version. I went to download it again, and at the very bottom it states 'Please note that the APRWIN calculation is not currently supported on Windows Vista'. Are there any VISTA users out here and what do you do? Is there a way around it? Any help would be appreciated. Thank you.