A 30-year fully amortizing 3/1 ARM for $500,000 has an initial rate of 4% and a margin of 2%. There are no caps or teaser rates. The variable and fixed fees are 2% and $3,000, respectively.

If the underlying index values at dates 0, 1, 2, 3, and 4 are 1%, 1.5%, 2%, 3.5%, and 4%, respectively, and then stay at 4.5% through year 30, what is the regulation Z required APR for the loan?