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# Mortgage APR Calculator

Use this calculator to determine the Annual Percentage Rate (APR) for your mortgage. Press the report button for a full amortization schedule, either by year or by month.

 Mortgage APR Calculator Results

# Your APR is LOAN_APR for this loan.

Annual Percentage Rate (APR) is 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. While APR calculations may vary from lender to lender to a small degree, all lenders must follow the same basic rules.

# APR is computed in two steps

The first step is to calculate an APR payment amount. This is done by adding your closing costs to your loan amount, and then calculating a new monthly payment at your loan's interest rate. In this case, if you borrowed (LOAN_AMOUNT + TOTAL_CLOSING_COSTS) at INTEREST_RATE for TERM years, your APR monthly payment would be LOAN_APR_PAYMENT. Notice that this is different than your actual payment of MONTHLY_PI.

The second step is to calculate what interest rate produces a monthly payment equal to the APR payment amount. In this case, we calculate the interest rate that would require a LOAN_APR_PAYMENT monthly payment on a loan of TERM years in the amount of LOAN_AMOUNT. The result is LOAN_APR which is the APR for your loan.

Note: It is important to point out that the APR for a loan with no fees is always the same as the stated interest rate. If you have a loan where the lender pays you for taking a higher interest rate, your APR for that loan may be lower than the stated interest rate.

# Mortgage Summary

 Mortgage Information Loan amount LOAN_AMOUNT Term TERM years Interest rate INTEREST_RATE Monthly payment MONTHLY_PI Total payments TOTAL_OF_PAYMENTS Total interest INTEREST_PAID

 Closing Costs Origination fee ORIGINATION_FEES_AMT Paid for points DISCOUNT_POINTS_AMT Other fees OTHER_FEES Total closing costs TOTAL_CLOSING_COSTS

Payment schedule

**REPEATING GROUP**

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# 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. Mortgage amount Original or expected balance for your mortgage. 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. Interest rate Annual interest rate for this mortgage. Monthly payment Monthly principal and interest payment (PI). Total payments Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal. Total interest Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal. 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. Points paid Total number of "points" purchased to reduce your mortgage's interest rate. Each "point" costs 1% of your loan amount. Other fees to include 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.

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