The APR Calculator helps you to determine the APR or Annual Percentage Rate on your mortgage. Once you calculate the APR, it becomes easier for you to compare the costs of different loans and select the best out of them.
Why to calculate APR
When you're shopping for a mortgage, you need to know what closing costs are involved and how much you need to pay. The APR reflects the cost of taking out a mortgage. This is because we calculate APR taking into account the interest rate as well as the closing costs required for the loan. So, whether it is fixed rate loan or adjustable rate mortgage calculation, you should calculate the APR using APR Calculator and get an idea about the total cost of borrowing.
How APR calculator helps you
When you use the APR calculator to calculate APR, enter closing costs in the box for "Additional Cost". Also, put down the values of the principal, interest rate and loan term in order to calculate APR.
Apart from the APR, the APR Calculator also gives you an amortization sheet with the monthly payments on your mortgage. Also, you have the option to try out various rates of interest and see how the APR changes with each rate change.