How do you figure APR?

Could someone please give me an example, preferably using this equation.... If the amount needed is $137500, there are $12,500 in fees for a total loan amount of $150,000 what would the APR be if the interest rate is 5.25% on a 30 year fixed loan?

if you have gotten a good faith estimate from a broker or bank you should have gotten a truth in lending statement it should show APR not all fees are used to figure out APR although 12,500 seems high considering the last loan i did had a closing fees of 12k and we did not charge yield spread!
by lay every good faith estimate must include a truth in lending

shop around!

Yes.



The apr is 5.25, you said so your self.

http://banking.about.com/od/loans/a/calc...

this is a link to a site which explains and gives you the formula. The formula is toward the bottom of the page

go to yahoo finance, you should be able to run any example you need

A 30 year 5.25% loan of $137,500 (with no fees) would require a monthly P&I payment of $759.28

A 30 year 5.25% loan of $137,500 + $12,500 in fees would require a monthly P&I payment of $828.31.

So you are really receiving $137,500 and paying $828.31 P&I per month. That equates to an APR of 6.044%

Not all of the fees are calculated in determining APR; certain fees may be excluded which will yield a lower APR than 6.044%.

I don't know how to calculate the APR directly; rather I calculate the percentage by varying the interest rate on the loan amount to yield the required P&I payment on the loan+fees amount.