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This APR Calculator helps you discover what your fixed-rate mortgage loan is really costing you.
What is Annual Percentage Rate (APR)?
A figure which attempts to reflect the total cost of a loan, expressed as a yearly rate. Because the APR takes the total cost of credit into account, it can never be lower, and is almost higher than the stated note rate or advertised rate. Within reason, the APR allows you to compare different fixed-rate mortgage terms based on the total cost.
Loan
A sum of borrowed money (principal) that is generally repaid with interest.
Closing Costs
The total costs and fees associated with closing. Includes one-time non-recurring fees and charges for inspections and other services, and (usually) initial escrows for recurring costs such as property taxes and insurance.
Point
A point is equal to 1 percent of the mortgage. One point on a $100,000 mortgage would be $1,000, for example. Discount points are simply interest that is paid up-front. Most lenders offer mortgages with several combinations of points and interest rates; generally, more points means a lower interest rate, less points means a higher rate.
DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or its applicability to your financial situation. Please consult your own financial advisor.
Related: Learn the difference between interest rate and APR and What APR Can't Tell You