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Mortgage Interest Calculator

Using a mortgage interest calculator, can help you understand the total loan costs involved in obtaining a mortgage. 

So just below you will find a helpful mortgage calculator to better understand your APR and thus compute your effective interest rate on a mortgage. 

All mortgages have upfront loan costs which will come from your good faith estimate. Simply take the numbers from your good faith estimate and put them in this calculator. 

Once you have done this it will compute your actual APR. 

In the first box under Mortgage Loan Amount enter the total amount of your mortgage. 

Now in the second box, take your Quoted Interest Rate and put it in here. 

In the third box you will enter your Mortgage Loan Term in the number of years. For example if you had a 30 year mortgage you would put that in here. 

If you are paying discount Points, it is usually calculated on a percentage basis. For example you may be paying, 8 points. This represents 1% of your mortgage amount. It is not likely that you would be paying points. I do not suggest it. 

Now calculate all the Other Closing Costs and enter that total figure in the last box. 

Click the orange button Compute APR to see the total cost of your mortgage. 

What you will see in the boxes below is your Principal and Interest Payment, your Total Points and Other Closing Costs, giving you an Effective Loan Amount

Now your monthly payment is recalculated based on the effective loan amount. So this mortgage interest rate calculator gives you the actual APR. Keep in mind that this is not your interest rate that you will be paying, but it is a way to help you shop for loans based on the APR. 

The higher the APR, the more expensive your loan is. So when shopping for a mortgage, use this mortgage interest rate calculator to determine the best option for you.

How is this calculator helpful? Your goal is to get the lowest APR possible. So, when you are in the market for a mortgage, it is worthwhile to figure the total cost of the loan.

The APR does this for you by combining the interest rate with any points and fees paid. Now you can compare that with other Good Faith Estimates to see which has the best offer.

Mortgage Interest Calculator

Mortgage Interest Calculator
This calculator will compute the effective interest rate of a mortgage when upfront loan costs are included.

Mortgage loan amount:
Quoted interest rate (%):
Mortgage loan term (# years):
Points (%):
Other closing costs to include:
Principal and interest payment:
Total of points and other closing costs:
Effective loan amount:
Monthly payment on effective loan amount:
But loan amount is really only:
Therefore, the APR is really this amount:

If you need help estimating your mortgage closing costs, check out this FREE closing costs calculator by clicking here.


Leave Mortgage Interest Calculator and return to Mortgage Calculators main page.

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