When applying for a loan, beside interest, it is not uncommon for the lenders to charge additional fees or points. Considering all the extra charges, the real APR will be higher than the APR given by the lenders. The following two calculators give out the real APR with fees and points considered. It helps to understand the real cost of the loan and compare loans from different lenders with different fee and APR structure, such as comparing no-closing-cost mortgage with mortgage at a lower rate with upfront closing cost.
General APR Calculator
Real APR: 6.335%
|Upfront Out-of-Pocket Fees||$1,500.00|
|Payment Every Month||$1,110.21|
|Total of 120 Payments||$133,224.60|
|All Payments and Fees||$134,724.60|
Mortgage APR Calculator
Use the calculator below for mortgage loan in the United States.
Real APR: 4.608%
|Total of 360 Payments||$364,813.42|
|All Payments and Fees||$366,313.42|
Beside the purchase price, buying a house in U.S. normally involves closing cost, typically 2-5% of the purchase price. The fees charged by lenders are one big portion of the closing cost. If the down payment is less than 20% of the property value, the lender normally will require the borrower to purchase PMI insurance until the loan-to-value ratio (LTV) reach 80%.