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True Cost Solver

Mortgage APR & Interest Rate Calculator

Calculate the true Annual Percentage Rate (APR) of your home loan. Factor in upfront discount points and lender origination fees.

Base Loan & Setup Charges

True Loan APR

6.618%

Base Monthly P&I Payment: $1,896.20
Upfront Discount Points Cost: $3,000.00
Other Upfront Lender Fees: $4,500.00
Total Payments (30-Yr): $682,633.20

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Interest Rate vs. APR: What's the Difference?

When shopping for a home loan, you will see two numbers displayed by banks: the Interest Rate and the Annual Percentage Rate (APR). Many home buyers mistakenly believe these figures are identical:

  • Interest Rate: The annual cost to borrow the principal balance. This rate determines your monthly Principal & Interest (P&I) payment.
  • Annual Percentage Rate (APR): The true annual cost of borrowing when including upfront fees. APR incorporates your base interest rate plus discount points, broker fees, and lender origination fees.

By law, APR provides a standardized metric to compare lender offers. A lender offering a 6.25% interest rate with high upfront fees may have a higher APR than a lender offering a 6.50% interest rate with zero upfront fees.

🔗 Compare lender fees directly: Top Rated Mortgage Lenders Table