Lenders quote both the note rate and the APR. A loan with a lower rate but more points and fees can have a higher APR. The APR assumes you keep the loan for the full term.
How to use the Mortgage Rate Calculator
- Loan balance
- Mortgage term
- Mortgage rate
- Mortgage points (% of loan)
- Up-front fees
- Annual fee
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the loan balance, term, rate, points, up-front fees and any annual fee.
Tips
- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.
Common mistakes to avoid
- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.
Inputs explained
| Field | What to enter |
|---|---|
| Loan balance | Amount in your currency |
| Mortgage term | Units: years, months |
| Mortgage rate | In % |
| Mortgage points (% of loan) | In % |
| Up-front fees | Amount in your currency |
| Annual fee | Amount in your currency |
What each result means
- Monthly payment = pmt([Mortgage rate]÷1200, [Mortgage term], [Loan balance])
- Adjusted mortgage rate (APR) = rate([Mortgage term], 0 – [Monthly payment] – [Annual fee]÷12, [Loan balance] – [Loan balance]×[Mortgage points (% of loan)]÷100 – [Up-front fees])×1200
- Paid interest = [Monthly payment]×[Mortgage term] – [Loan balance]
- Total payments (incl. points and fees) = [Monthly payment]×[Mortgage term] + [Loan balance]×[Mortgage points (% of loan)]÷100 + [Up-front fees] + [Annual fee]×[Mortgage term]÷12
Example values
How the main result changes when Loan balance changes and everything else stays at the example values above:
| Loan balance | Monthly payment |
|---|---|
| 175,000 | 1,106.12 |
| 262,500 | 1,659.18 |
| 350,000 | 2,212.24 |
| 437,500 | 2,765.3 |
| 525,000 | 3,318.36 |
| 700,000 | 4,424.48 |
Formula
Monthly payment = pmt(rate ÷ 12, months, balance)APR = rate i such that balance − points − fees = Σ payments ÷ (1 + i/12)^kAnnual fees are added to the effective costWorked example
Inputs — Loan balance: $350,000; Mortgage term: 30 years; Mortgage rate: 6.5 %; Mortgage points (% of loan): 1 %; Up-front fees: $4,000; Annual fee: $0.
Results — Monthly payment = $2,212.24; Adjusted mortgage rate (APR) = 6.71 %; Paid interest = $446,405.71; Total payments (incl. points and fees) = $803,905.71.
Frequently asked questions
What is the difference between the mortgage rate and APR?
APR includes points and fees, spread over the loan term.
Why does the APR assume the full term?
It's a standard measure; if you sell early, fees cost more per year.
What is a good mortgage rate?
Compare with current averages for your credit score and loan type.
What formula does the Mortgage Rate Calculator use?
Monthly payment = pmt(rate ÷ 12, months, balance).