"Jeff" wrote:
what does the 12 * 7 represent?

7 for the term of the loan in years. 12 for the number of payments per
year, assumed to be monthly.

I used 12*12 in the PMT formula because you had said "payments amortized
over 12 years".


----- original message -----

On Apr 8, 2:42 am, "Joe User" <joeu2004 wrote:
I wrote:
"Jeff" wrote:
The answer is ~7.02.
[....]
However, my result is only about 6.61%.

If you tell me the source of your expectation, I might be able to explain
why you might never get the expected result.

----- original message -----

"Joe User" <joeu2004 wrote in message

...



"Jeff" wrote:
I need to calculate an APR for a mortgage with a
balloon payment.

I (and Fred) can certainly help you with that. But I wonder if you have
omitted or misstated some critical information.

For example, are payments monthly? Is there any downpayment, or is
$100,000 the amount of the loan? Also, what is the jurisdiction of the
loan: US; Canada?

Assuming monthly payments and a loan of $100,000, and assuming a US
loan,
here is how I would do the calculation.

Payment in A2:
=round(pmt(6.5%/12, 12*12, -100000),2)

Note: Although rounding is necessary for real-world loan computation,
many people do not do it, including loan officers who are providing a
quote, not the actual loan contract.

Balloon payment in A3:
=round(fv(6.5%/12,12*7,A2,-100000),2)

APR:
=12*RATE(12*7,A2,-(100000-500),A3)

However, my result is only about 6.61%.

----- original message -----

"Jeff" wrote in message
...
I need to calculate an APR for a mortgage with a balloon payment.
I've tried oodles of combinations of RATE(), PMT(), FV(). An example
might be a $100,000 home, $500 in loan fees financed in the mortgage,
an annual rate of 6.5%, 7 year term, payments amortized over 12
years. The answer is ~7.02. Help!