See how fees and points raise borrowing costs. Review monthly payment, financed amount, and APR. Use detailed inputs to compare mortgage offers with clarity.
Enter pricing, fees, credits, and escrow details. The tool estimates payment, amount financed, APR, and early amortization trends.
| Field | Example Value |
|---|---|
| Home Price | $400,000 |
| Down Payment | 20% |
| Note Interest Rate | 6.75% |
| Loan Term | 30 years |
| Origination Fee | $1,800 |
| Discount Points | 1.00% |
| Underwriting Fee | $995 |
| Processing Fee | $795 |
| Lender Credits | $1,200 |
| Annual Property Tax | $4,800 |
| Annual Insurance | $1,800 |
1. Base loan amount = Home price − Down payment.
2. Gross loan amount = Base loan amount + Financed closing costs.
3. Discount points cost = Gross loan amount × Points %.
4. Upfront finance charges = Origination fee + points + lender fees + prepaid finance charges − lender credits.
5. Amount financed = Gross loan amount − Upfront finance charges.
6. Principal and interest payment uses the standard amortization formula:
Payment = P × [r / (1 − (1 + r)^−n)]
Here, P is gross loan amount, r is periodic note rate, and n is total number of payments.
7. APR is solved by finding the periodic rate that makes the present value of scheduled payments equal the amount financed.
8. Effective APR = (1 + periodic APR rate)^(payments per year) − 1.
Mortgage APR estimates the full yearly borrowing cost. It includes the note rate plus certain prepaid finance charges and sometimes required mortgage insurance.
APR is often higher because it includes points, origination charges, underwriting fees, processing fees, and similar lender costs beyond the simple note rate.
Property taxes are usually part of escrow and housing payment budgeting, but they are not generally treated as finance charges for APR calculation.
Yes. Lender credits reduce upfront finance charges, which can increase the amount financed and lower the calculated APR result.
Discount points are optional prepaid charges paid to reduce the note rate. One point typically equals one percent of the loan amount.
This version works best for fixed-rate comparisons. Adjustable loans need rate change assumptions and future payment resets for stronger APR modeling.
Financing closing costs increases the principal used for payment calculation. That affects payment size, total interest, and the estimated APR.
No. It is an educational estimate. Official loan disclosures from your lender should be used for final decisions and compliance review.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.