Mortgage

Annual Percentage Rate Calculator

Loan Balance:

Interest Rate:

Period:

Points:

Mortgage Ins:

APR:

 

Definitions:

Loan Balance - The initial loan amount you wish to finance.

Interest Rate - The stated interest rate on the loan.

Period - This is the length of the loan, which you can specify in years or months.

Points - The points specified in the mortgage program. If you are borrowing $100,000 and you have been quoted 2 points, then you will pay $2,000 in Points when you close the loan. This can be paid in cash at closing or can sometimes be added onto the loan.

Mortgage Ins - The total cost of mortgage insurance, or the sum of all your monthly insurance payments. Mortgage insurance is almost never found with private mortgages. In our view it is a type of "hidden" extra interest rate. You pay it  for putting down a small down payment, which increases the lenders risk. Recent legislation requires that the lender cancels mortgage insurance after your loan balance has reached a certain level.

APR - The annual percentage rate (APR) which takes into account  the interest rate, points and mortgage insurance.