Mortgage interest rate calculator: Calculate your annual percentage rate (APR)
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Mortgage APR Calculator
This
Mortgage APR (Mortage Rates)
calculator computes the Annual Percentage Rate (APR) for your mortgage. Press the View Report button to generate a full amortization schedule, either by year or by month.
Mortgage APR Calculator - Definitions
Annual Percentage Rate (APR) - A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a mortgage 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 to choose the best loan.
Mortgage amount - Original or expected balance for your mortgage loan.
Term in years - The number of years over which you will repay this mortgage loan. The most common mortgage terms are 15 years and 30 years.
Interest rate - Annual interest rate for this mortgage loan.
Monthly payment - Monthly mortgage loan principal and interest payment (PI).
Total payments - Total of all monthly payments over the full term of the mortgage loan. This total payment amount assumes that there are no prepayments of loan principal.
Total interest - Total of all interest paid over the full term of the mortgage loan. This total interest amount assumes that there are no prepayments of loan principal.
Loan origination percent - The percent of your mortgage 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 annual percentage rate APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.
Mortgage APR (Annual Percentage Rate)
is computed in two steps.
The first step is to calculate an APR (annual percentage rate) payment amount. This is done by adding your closing costs to your mortgage loan amount, and then calculating a new monthly payment at your loan's interest rate. In this case, if you borrowed $100,000.00 plus closing cost of $2,800.00 at 6.250% for 30 years, your APR (annual percentage rate) monthly payment would be $632.96. Notice that this is different than your actual payment of $615.72.
The second step is to calculate an interest rate that produces a monthly payment equal to the APR (annual percentage rate) payment amount. In this case, we calculate the interest rate that would require a $632.96 monthly payment on a mortgage loan of 30 years in the amount of $100,000.00. The result is 6.514% which is the
Mortgage APR (Annual Percentage Rate)
for your mortgage loan.
CalculatorPlus provides free online mortgage loan calculator to calculate adjustable rate mortgage or to determine mortgage approval. In addition, homeowners can use the mortgage calculator insurance to calculate their monthly mortgage payment, or the loan amortization calculator to generate an amortization schedule. These loan calculators and other finance calculator including CD calculator and credit card calculator available on CalculatorPlus can help homeowners and other users make smart personal finance decisions (calculator loan).