Calculated Industries 3405 - Prepaid (Odd-Days) Interest and APR, Including Mortgage Insurance

POCKET REFERENCE GUIDE — 30
Prepaid (Odd-Days) Interest and APR,
Including Mortgage Insurance
• Loan: $350,000
• Term: 30 years
• Interest: 6%
• Cost: 1.5 points + $750
• Mortgage insurance (MI): $2,200/year
• Escrow Closes: 7/21/03
• 1st Payment Due: 8/1/03
STEPS KEYSTROKES DISPLAY
Clear o o 0.00
Enter loan 3 5 0 ) l
350,000.00
Enter term 3 0 T 30.00
Enter interest 6 ˆ 6.00
Find P&I
payment p 2,098.43
Enter MI 2 2 0 0 s I
2,200.00
Find days between escrow
closing and date of 1st
payment 8 : 1 : 0 3 – 7 :
2 1 : 0 3 = 11.00
Find prepaid interest/ODI* due
at closing s : 641.67
Store prepaid interest
in Memory µ M 641.67
*This is based on a 360-day year, as most banks
use this method for computing prepaid interest.
(Cont’d)
3405PRG-E-B 1/9/04 8:45 AM Page 30