46 — MORTGAGE QUALIFIER PLUS ®Prepaid/Odd-Days Interest and APRFind the monthly payment on a $100,000 loan at 8.25% annualinterest and 30-year term. Then, find the amount of odd-days inter-est, or “prepaid” interest due, if the escrow closes on 7/21/03 andthe first payment is due 8/1/03.STEPS KEYSTROKES DISPLAYClear calculator o o 0.00Enter loan amount 1 0 0 ) l 100,000.00Enter interest 8 • 2 5 ˆ 8.25Enter term 3 0 T 30.00Find monthly P&I payment p “run” 751.27Find days between escrow closing anddate of 1st payment 8 : 1 : 0 3 – 7 : 2 1: 0 3 = 11.00Find the prepaid interestdue at closing s : 252.08**Note: This is based on a 360-day year, as most banks use this method for comput-ing prepaid interest.— DO NOT CLEAR CALCULATOR —Now, without clearing the calculator, add the prepaid interest to theloan's points and fees if they are equal to 1.5% and $500, respec-tively. Then find the Annual Percentage Rate (APR), based on theseclosing costs.STEPS KEYSTROKES DISPLAYStore the prepaid interestin memory μ 252.08Find Loan Costs:Recall loan amount ® l 100,000.00Find point cost x 1 • 5 % = 1,500.00Add fees + 5 0 0 = 2,000.00Add prepaid intereststored in memory + ® μ = 2,252.08Find APR for this loan s ˆ “run” 8.50Clear All s x “All Cleared” 0.00
