Mortgage APR Calculator
Calculate the real cost of a mortgage by factoring in discount points, origination fees, PMI, and prepaid interest to reveal the APR and total cost.
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APR vs Interest Rate
Note Rate
6.500%
Your quoted interest rate. Monthly payment (principal & interest) remains $1,896.
Annual Percentage Rate (APR)
6.672%
Includes points, origination, fees, and prepaid costs.
APR vs Rate Difference
+0.172%
Low fees compared to rate.
Amount Financed
$294,699
Loan amount minus upfront finance charges ($5,301 in fees).
Finance Charge Breakdown
Total finance charges counted toward APR: $5,301. Fees excluded from APR (record keeping, escrow, etc.) should not be added here unless requested.
Loan Details
Closing Costs Included in APR
Mortgage Insurance & Prepaid Interest
Lifetime Cost Overview
If you keep this mortgage for the full 30-year term, you will pay $687,935 in total (principal, interest, mortgage insurance, and finance charges). The effective APR if you expect to keep the loan for 7 years is 0.000%.
APR Playbook
When APR Jumps
- More than 0.50% above rate? Ask for itemized fees.
- Compare with no-point offers to see breakeven savings.
- Shop at least 3 lenders; APR exposes hidden costs.
Points vs No Points
- Divide points cost by monthly savings to find breakeven months.
- If refinancing or moving before breakeven, skip the points.
- APR helps confirm if lower rate actually wins long term.
Know What’s Included
- APR must include lender charges, points, and mortgage insurance premiums.
- Appraisal, title, escrow, and taxes usually excluded—compare separately.
- Always ask for the Loan Estimate (LE) and Closing Disclosure (CD).
Tip: Compare Using the Same Loan Type
Only compare APRs on identical loan products (same loan amount, term, rate type, and points). Use effective APR if you expect to refinance or sell earlier than the full loan term.
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⚠️ Important Disclaimer
This Mortgage APR Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.