P
OCKET
R
EFERENCE
G
UIDE
— 30
Prepaid (Odd-Days) Interest and APR,
Including Mortgage Insurance
• Loan: $350,000
• Term: 30 years
• Interest: 6%
• Cost: 1.5 $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
