Good morning. Can anyone direct me to a good software tool that I can use for the initial calculation of APRs and Finance Charges for ARMs. I'm still currently using my 20+ year old HP 12-C.
Also, I'm having difficulty backing into the APR and FC on a 5.08/5.08 ARM that has already been originated. Yes, the Note and Program Disclosure state that the rate will not change for the initial 61 months and will change every 61 months after that. Payment change will correlate to rate change.
Index value was 2.48 with a margin of 2.75 with a calculated rate of 5.23 rounded to 5.25%. Loan was for $300K with 4% initial note rate with 30 year term. I calculated an initial stream of $1,432.24 for my first 61 payments. After amortizing the first 61 payments I was left with a principal of $270,815 from which I then calculated a payment of $1,625.48 for the remaining 299 payments based on the 5.25 fully indexed rate.
The significant variance between my calcs and those on the CD are leading me to second guess my methodology. My calcs are coming in at much less than those on the CD so everything disclosed appears materially overstated. Any thoughts? Hope everyone is safe and sound.