APR Mortgage Calculator

Name: APR Mortgage Calculator
Brand: Leader Bank

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.

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By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.

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APR Mortgage Calculator | Leader Bank

*indicates required.

Loan information:

Mortgage amount:*This entry is required.Enter an amount between $0 and $250,000,000

Term in years:*This entry is required.

Interest rate:*This entry is required.Enter an amount between 0% and 50%

Monthly payment:

Report amortization:

Report amortization

Annually

Monthly

Closing Costs: $0.00

Loan APR 0%

**FIG_GRAPHTITLE** Stacked Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Total Payments KJE1
KJE2

**FIG_GRAPHTITLE** Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Principal Balance by Year

Definitions

Mortgage amount

Original or expected balance for your mortgage. Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately). Any interest paid on first or second mortgages over this amount is not tax-deductible. Home equity loans are limited to $100,000 or the amount of equity you have in your home. Our calculator limits your interest deduction to the interest payment that would be paid on a $1,000,000 mortgage.

Interest rate

Annual interest rate for this mortgage.

Term in years

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Monthly payment

Monthly principal and interest payment (PI).

Loan origination percent

The percent of your loan charged as a loan origination fee. For example, a 1% fee on a $120,000 loan would cost $1,200.

Discount points

Total number of "points" purchased to reduce your mortgage's interest rate. Each "point" costs 1% of your loan amount. As long as the points paid are not a broker's commission, they are considered tax-deductible in the year that they were paid.

Other fees

Any other fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.

Annual Percentage Rate (APR)

A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a 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.

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.

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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.