The banking costs of a loan involve more than just interest rates. When applying for a loan, it is common for lenders to charge fees or points in addition to interest. Hence, instead of merely focusing on interest, lenders should pay more attention to the annual percentage rate, or real APR, when considering the actual cost of a mortgage. The following two calculators help reveal the true costs of loans through real APR.
• Module 1 (General APR): Analyzes personal, commercial, auto, and installment loans with custom upfront closing fees, loaned fees, and compounding periods.
• Module 2 (Mortgage APR): Models real estate purchases with down payment equity, discount/origination points, lender closing fees, and PMI insurance.
Calculate the fee-adjusted real APR for installment, auto, personal, or commercial business loans.
6.563%
vs. stated nominal note rate of 6.00%Calculate the true mortgage APR factoring in down payment equity, discount points, closing fees, and PMI.
6.367%
vs. note rate of 6.20%When applying for loans, looking solely at the nominal interest rate can be deceiving. The Annual Percentage Rate (APR) reflects the true annual cost of borrowing by bundling the interest rate with upfront origination fees, discount points, appraisal fees, and documentation charges.
The stated interest percentage that determines your recurring monthly principal and interest installment, ignoring all lender fees and discount points.
The internal rate of return calculated against the net cash proceeds disbursed to the borrower after deducting all out-of-pocket closing costs and discount points.
1 point equals 1% of the loan amount paid upfront to lower the interest rate. The APR calculator reveals whether paying points makes financial sense given your expected holding horizon.
Calculate simple and compound interest across various compounding frequencies.
Compute personal loan monthly installments, insurance, and payoff dates.
Compare existing vs. refinanced loans and calculate break-even periods.
Calculate commercial loan payments, cumulative costs, and real APR.