Difficulty using the FFIEC APR Tool on a HELOC

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Question:

I’m trying to use the official APR Calculator to confirm that the rate on our HELOC disclosure is correct. I’m so confused! Nothing seems to work, can you give me direction?

Answer:

The FFIEC’s APR Tool (which replaced APR-Win) is a fantastic tool to check APR accuracy, but it doesn’t work for every loan situation. It isn’t designed for open-end credit. Open-end lines receive periodic billings statements, and the APR is calculated on each one, based on the daily periodic rate and other applicable finance charges. As a result, on account opening disclosures, the interest rate and APR will typically be the same – no calculator needed!

Want to learn more about APR accuracy on these loans and more? Tune into the upcoming webinar “Yikes! The APR or APY is WRONG…Now What?!” on May 18, 2023!

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Learn more about Rebekah Leonard’s, Yikes! The APR or APY is WRONG…Now What? webinar.