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APR Mortgage Calculator
Understanding APR
APR is an acronym for Annual Percentage Rate, and this rate represents the actual cost of a mortgage loan to borrowers including interest rate, closing costs, and other fees. This can be considered a more accurate indication of the actual cost of a mortgage for a borrower than just the interest rate because it takes into account items such as closing costs, discount points, and other fees. Further, if you have an adjustable-rate loan, the APR can take into account potential future increases in your interest rate. All residential lenders are required to disclose both estimated and final APRs for a mortgage loan as part of the application and closing process, and this disclosure can allow borrowers to compare the actual costs of different mortgage loans. Leader Bank has provided the below APR Mortgage Calculator to help you determine what you can expect your APR to be for a potential fixed interest rate mortgage loan, as well as what potential monthly payments would be upon your interest rate and costs.
How Does APR Work?
APR, or Annual Percentage Rate, represents the actual cost of a mortgage loan to borrowers including interest rate, closing costs, and other fees. The total cost of the loan is then expressed as an annual percentage.
How to Calculate APR on a Mortgage
Trying to calculate the APR on your mortgage loan may seem complicated, but luckily our handy calculator above makes it as easy as possible for a fixed rate loan. Simply enter a potential mortgage loan amount, the term of the loan in years, interest rate, and select whether you’d like the report to express amortization in years or months. For closing costs enter the origination fee percentage, any points you expect to pay or have paid, and the amount of any additional fees. Hit “Calculate” and you’ll be able to view a full report detailing the projected APR on your mortgage loan!
What’s the Difference Between APR and Interest Rate on a Mortgage?
There are many factors that go into calculating the true cost of a mortgage loan to borrowers including interest rate, closing costs, and other fees. Most borrowers usually focus on the interest rate when shopping for a home loan – this the rate that your mortgage lender will charge you to buy a home. The interest rate is added to the principal portion of your monthly payment. Interest rates vary based on current economic conditions, your down payment size, discount points, credit score, and other factors.
The calculator tool provided is for informational purposes only and does not reflect any specific mortgage or home equity line of credit offered by Leader Bank or any specific terms that may be available for such products. For information on available Leader Bank products and services, please contact a Leader Bank loan officer directly. Examples of monthly payment amounts shown in calculators does not include taxes, insurance or any condominium or HOA fees applicable; as such your total monthly housing payment would be higher. For any adjustable or variable rate loan examples provided, interest rate may increase after consummation and your fully indexed rate, annual percentage rate and monthly principal and interest rates may be higher.
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