You can use this mortgage APR calculator to estimate the effective annual interest rate on a loan. The calculator uses the quoted annual interest rate, in combination with the fees charged, to figure out an effective monthly payment on the loan. Based on that new payment, the APR on the mortgage can be determined.
Calculator Definitions
The variables used in our online calculator are defined in detail below, including how to interpret the results.
Total Home Loan Amount ($)
The total amount of money borrowed for this mortgage, also referred to as the principal on the loan.
Annual Interest Rate (%)
This is the annual interest rate on the mortgage. This is not the APR, which we are going to calculate in this example.
Number of Points Paid
This is the number of points you are required to pay to obtain this mortgage.
Term of the Loan (Years)
This is the number of years over which the mortgage will be paid. The most common mortgage terms are 15, 20, and 30 years.
Application / Processing Fees ($)
Many times, financial institutions charge mortgage application fees. If that applies to this loan, then enter the amount here.
Other Fees / Costs ($)
If you had any other fees associated with the mortgage, such as origination fees, enter that amount here.
Total Mortgage Fees ($)
This is the total of the application and other fees, which you have previously entered.
Monthly Payment ($ / Month)
This is the monthly mortgage payment for the loan itself, not including mortgage insurance or property taxes, which are sometimes included with your mortgage payment.
Effective Monthly Payment ($ / Month)
This is the effective monthly mortgage payment, which includes all of the fees / points and puts them back into the principal of the mortgage. This is not the amount you would actually pay each month, but the value is used to compute the effective APR.
Calculated APR (%)
This is the calculated APR on the loan, taking into consideration the points paid and all the fees associated with the mortgage.
Mortgage APR Calculator
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.
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