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APR Calculator

Discover What Your Mortgage Really Costs You!

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DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or
it's applicability to your financial situation.  Please consult your own financial advisor.
Definitions

 

Annual Percentage Rate (APR)
A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.
Loan amount
Original or expected balance for your loan.
Interest rate
Annual interest rate for this loan.
Term in years
The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.
Monthly payment
Monthly principal and interest payment (P&I).
Loan origination percent
The percent of your loan charged as a loan origination fee. For example, a 1% fee on a $120,000 loan would cost $1,200.
Discount "Points"
Total number of "points" purchased to reduce your mortgage's interest rate. Each "point" costs 1% of your loan amount.
Other fees
Any other fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest. 
 
There are various ways that companies compute APR. Mortgage Loan Fees may include Appraisal, Credit Report, Processing, Document Preparation, Administration, Underwriting, Flood Certificate, Tax Service, Wire Transfer, and other fees.

 

 


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