Errata....
On Jan 11, 1:19*am, I wrote:
I must say that I do not know how any lending institution that uses
actual/360 (none that I know of) computes the regular monthly payment.
Please forgive the incessant posts. But a google search stumbled
across
http://www.askarcs.com/loan_programs/definitions.asp , which
states: the "monthly loan payments are the same for both methods".
Thus, PNC ARCS, at least, "one of America's leading commercial
lenders", computes the regular payment for an actual/360 loan using
the same 30/360 PMT() formula that I posted previously.
ARCS explains: "This leaves the loan balance 1-2% higher than a
30/360 10-year loan with the same payment". I don't know how they
figured that. For a $100,000 loan at 6%, the balance and last payment
for an actual/360 loan is about 64.5%(!)higher than for a 30/360 loan
with the same monthly payments. I suspect that instead of "loan
balance", they meant either the total payments or total interest,
which 0.5% and 2.2% higher respectively.
I had presumed that the regular payments were different for 30/360 and
actual/360 loans of the same terms (otherwise), and my presumption
seemed to be confirmed by the calculator at
http://www.cmdatabase.com/calcact360.html
.
However, I cannot find anything out about CMDataBase.com, other than
it is a "Commercial Real Estate Finance reference website".
Since PNC ARCS is a lender and CMDataBase.com does not appear to be, I
would trust ARCS. However, perhaps there is simply no standard in the
(US) industry for computing the regular payment for actual/360 loans.
HTH.