Mortgage APR Calculator
This Mortgage APR Calculator helps you estimate the true annual percentage rate (APR) on your mortgage, including interest, fees, and discount points, giving a complete picture of your loan cost.
Mortgage Annual Percentage Rate (APR) Estimator
Mortgage APR Approximation Formula
\[
APR \approx \frac{(R \times L) + F + (L \times \frac{Points}{100})}{L} \times 100
\]
Where:
- $$APR$$ = Annual Percentage Rate (as a percentage)
- $$R$$ = Nominal interest rate (as decimal)
- $$L$$ = Loan amount
- $$F$$ = Fees and closing costs
- $$Points$$ = Discount points paid (percentage of loan)
The Mortgage APR Calculator estimates the true cost of borrowing by including not only the interest rate but also fees and discount points. It provides a more accurate comparison between different mortgage offers and helps borrowers make informed decisions.