Is there a fast/quick way to solve for Effective Interest? My sister is getting a 5% 350k mortgage. However it requires 13k (3.7%)up front it fees so the interest rate should be much higher… In actually it’s not a 5% rate.
PV = (350k - 17k) PMT = PMT on a 350k mortgage at 5% (I get 1879 on 30 y mortgage) N = number of payments until paid off (I assumed 30 years) FV = 0 i = solve I get 5.44%
Plus the APR will be disclosed by law.