What method does the Real Estate Investment Analysis (REIA) product use to calculate loan interest – 30/360, Actual/360 or Actual/365?
Answer: 30/360
The 30/360 method results in a amount very close to Actual/365 – close as in about $20 for a million dollar loan with a ten-year term.
The Actual/360 method by contrast would produce a difference that might make a difference to you – it would be thousands of dollars on the same million dollar loan.