How does DocMagic calculate the APR?
DocMagic has the ability to calculate the APR by either excluding the per diem interest period or extending the loan term by the per diem interest period. Both methods are authorized under Reg. Z Section 226.17(c)(4). DocMagic’s default is to exclude the per diem interest period so that the amount financed is spread over equal intervals. Generally speaking, excluding the per diem interest period generally yields a higher APR that extending the loan term by the per diem interest period, assuming the same loan parameters. If you wish to modify DocMagic’s default for calculating APR (i.e., extending the loan term by the per diem interest period), you may ask any Customer Service Representative, at (800) 649-1362, to make this change for you.
