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#98088 - 07/17/03 04:28 PM APR Help
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
I've checked some of the other posts but couldn't come across this. My understanding is that the OCC APR software is unable to verify the the APR when you have variable payments. My loan is a variable rate loan and there are 11 interest only payments that could vary depending upon the interest rate increasing. Does anyone have a suggestion on how I could do this? Unfortunately I don't have Richard's calculator. Thank you.

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#98089 - 07/17/03 04:41 PM Re: APR Help
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
By saying the payments are "variable", do you mean they will only change if the index changes? If that's the only issue, base your APR on the interest payments you calculate at the index value in effect at the time the disclosures are being prepared.

On the other hand, if the schedule is something like "principal payments of $100 per month plus interest at xx%", then every payment is different & you have to load them all.
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#98090 - 07/17/03 05:42 PM Re: APR Help
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
Yes, the payments change when the index changes. I would like to check this in APR WIN. The note has 11 interest only payments varing from $xxx.xx to $xxx.xx with a balloon at the end. I wasn't sure how to do this in APR WIN and am not sure which payment stream to use.

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#98091 - 07/17/03 06:44 PM Re: APR Help
Lori_Ohio Offline
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Lori_Ohio
Joined: Jul 2003
Posts: 1
Ohio
have you gone into the calander portion of the occ, and put your payment date of your first regular payment?? Is this a construction perm. loan? If so, did you mark that option?? It will give you the right options in the calander.

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#98092 - 07/17/03 07:22 PM Re: APR Help
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
You will need to have the amounts of all the payments in order to compute the APR. As Lori points out, if this is a multiple advance construction loan, then you will need to use the program that estimates CST interest and the APR.
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#98093 - 07/17/03 07:47 PM Re: APR Help
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
It is not a construction loan. My document says that there are 11 interest payments varying from $403.42 to $377.39 with 1 payment of $100,390.41. The note states that if the interest rate increases 1.0% in 3 months, then the payments would increase by $82.19 to $79.45. What I need to know is can I verify this in APR WIN based on the information I have? If not, is there another method (like Excel) and if I do it that way how do I set up the formulas?

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#98094 - 07/17/03 07:55 PM Re: APR Help
KSalberta Offline
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KSalberta
Joined: Jan 2003
Posts: 150
GA
You have to enter all the different payment streams. Do you have access to the amortization schedule? I've never tried one like this in APRWIN, but I bet you could enter each payment singly and do it.

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#98095 - 07/17/03 07:55 PM Re: APR Help
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
You can't verify the Total of Payments, Finance Charge, or APR unless you know the dollar amounts of all the payments. (Ignore the variable rate hypothetical example.) It's not too tough to figure the amounts of interest payments for months with different numbers of days, but the first payment period may have extra (or short) days. After that, it's payment = loan_amount X daily_rate X #_days_this_month
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#98096 - 07/17/03 09:51 PM Re: APR Help
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
Thanks everyone! I think it worked out. I did a small Excel spreadsheet to get the payments and then plugged those into APR WIN. On this loan my APR was off by .0002 but my FC and TP were to the penny! Another loan I tested this way was off by a few cents but perhaps taking into account rounding, etc. by our platform this should be close enough. I feel like I learned something so today was a good day!

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