Calculating Mortgage APR...

Anyone had any experience?

[woldie]

Hi,

I've got this daunting task of calculating the APR of a mortgage, I've had a look at some JavaScript, and it looks very complex.

Has anyone had any experience in calculating the APR of mortgage, I have done everything of what is required but need to calculate the APR.

This is what I have calculated, these are exmple figures

Property value £250,000
Net Mortgage Advance £102,150
Total Mortgage Advance £102,150
Term 25 Years
Total Amount Payable £205,960.81
Repayment type Repayment

Basis of Rate Variable Rate
Initial Interest Rate 6.45%
Initial Rate Period 25 Years
APR %?

Initial Monthly Payment £686.54

Any ideas would be greatly received?

Thanks

[coopster]

Are you looking for a formula?

[woldie]

Hi Coopster,

Not quite, but I have found a class in which it calculates the APR, by giving some values i.e. loan amount, years, rate, and fees, it seems to work okay, but believe you me the JavaScript I was given, looks very unpleasant to read.

So I'm hoping this is the thing I'm looking for otherwise I'll be shouting again on this forum...

[Allie_Mae]

Woldie,

I am a mortgage broker, and I can tell you it would be impossible to calculate the APR correctly based on those figures.

You need an exact breakdown of the costs that are involved. Simply saying they are x amount won't do it.