When this calculation is put into a program called easylender a mortgage
program a annual percentage rate of 4.859% appears how do I create a formula
in excel to match this rate?

"N Harkawat" wrote:

for the first situation the formula is
=RATE(360,-684.03,135000-1770.57)*12

For second situation where the PMT changes after 74th month the Rate
function would not work.

however if copied from cell A2 thru A74 $742.53 and from A75 thru A361
$684.03 and on cell a1 ,$-135000
Then on cell B1 type the following:
=IRR(A1:A361,3%/12)*12

That should give you your average rate of 4.74%

Its cheaper taking the first option of 4.61%





"LD" wrote in message
...
How do i create a formula in Excel to calculate the average percentage
rate
of a 30 year financing period
For example Loan amount 135,000 montly payment amount 684.03 number of
payments 360 intrest rate 4.5% and prepaid finance charge of 1770.57. The
first 74 payments the monthly payment amount will be 742.53 and for the
remaining payments of 286 the monthly note will be 684.03