The effective APR for the loan is 84.69%.
How to solve
To calculate the effective APR, we need to consider the origination fees and the monthly compounding of interest.
Step 1: Calculate the origination fees
Origination fees = 4% x $350,000 = $14,000
Step 2: Calculate the loan amount after origination fees
Loan amount = $350,000 - $14,000 = $336,000
Step 3: Calculate the monthly interest rate
Nominal rate = 6% per year = 0.5% per month
Step 4: Calculate the total number of payments
Number of payments = 30 years x 12 months/year = 360 months
Step 5: Calculate the monthly payment using the loan amount, interest rate, and number of payments
Monthly payment = $336,000 x (0.005 / (1 - (1 + 0.005)^-360)) = $1,726.64
Step 6: Calculate the total amount paid over the life of the loan
Total amount paid = Monthly payment x Number of payments = $1,726.64 x 360 months = $621,590.40
Step 7: Calculate the effective APR
Effective APR = (Total amount paid - Loan amount) / Loan amount * 100%
Effective APR = ($621,590.40 - $336,000) / $336,000 x 100% = 84.69%
Therefore, the effective APR for the loan is 84.69%.