1. In the Actual Amount Borrowed column, calculate the actual amount you will borrow by subtracting the points and fees from the loan value.
2. To take these fees into account, the lender is required by law to disclose the APR (the annual percentage rate of interest) of the loan being charged. However, banks can calculate APR in different ways, including or excluding different fees. To calculate an actual annual interest rate being charged on this loan (APR), use the actual amount borrowed (Step 4) as the present value of the loan, the monthly payment (Step 3) and the corresponding loan duration.
3. In the Payment and Balloon column, use the nominal interest rate and loan value (from column G), to determine the monthly loan payment if you altered the loan to include a $15,000 balloon payment at the end of the loan.

Loan Analysis Worksheet Purchase Price Number of Compounding Periods/ye 4 Optional Balloon Payment $ 15,000 Loan Value Actual Monthly Amount Payment Borrowe APR Payment with Balloon Nominal Option Down Interest Duratio # Payment Ratelyr n (yrs) 1 19% 4.91% 30 2 11% 5.26% 30 3 5% 5.75% 30 4 0% 6.25% 30 5 19% 4.75% 30 6 9% 5.50% 15 7 5% 6.50% 15 Points 3 2 3 3 1 0 0 Fees 375 375 275 0 0 350 350 Private loan (1) annual rate: Private loan (2) duration: CD value enough for down payment: Loan Analysis Worksheet Purchase Price Number of Compounding Periods/ye 4 Optional Balloon Payment $ 15,000 Loan Value Actual Monthly Amount Payment Borrowe APR Payment with Balloon Nominal Option Down Interest Duratio # Payment Ratelyr n (yrs) 1 19% 4.91% 30 2 11% 5.26% 30 3 5% 5.75% 30 4 0% 6.25% 30 5 19% 4.75% 30 6 9% 5.50% 15 7 5% 6.50% 15 Points 3 2 3 3 1 0 0 Fees 375 375 275 0 0 350 350 Private loan (1) annual rate: Private loan (2) duration: CD value enough for down payment