Odd Days Interest & APR
Odd days interest is the “prepaid” interest
accumulated from the date of escrow
closing to the first payment date. It is
based on straight simple interest calculat-
ed for a 360-day year, using the entered
interest rate value. This interest is calcu-
lated at funding time, and is included in
the total cost of the loan, for calculating
the Annual Percentage Rate (APR). In
solving for odd days interest, you must
enter the following: 1) the loan amount
2) the annual interest and, 3) the number
of days from escrow closing to the date
of the first payment.
Finding ODI and APR
Find the monthly payment on a $100,000
loan at 8.5% annual interest and 30 year
term. Next, find the amount of odd days
interest, or “prepaid” interest due, if
escrow closes on 7/21/98 and the first
payment is due 8/1/98.
Steps/Keystrokes
Display
1. Clear calculator:
[On/C] [On/C]
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User’s Guide — 39
