APR calculator
Estimate the annual percentage rate from note rate and prepaid finance charges using the actuarial method.
One point = 1.00% of loan amount.
Lender-paid MI, processing, underwriting, etc.
APR (estimate)
6.740%
0.115 above note rate.
Monthly P&I payment
$2,721
Total prepaid finance charges
$5,000
Discount points cost: $0
Estimate only. The disclosed APR on the Loan Estimate is computed by your LOS from the binding fee set.
The calculator solves for the rate that equates the present value of monthly P&I payments to the loan amount minus prepaid finance charges (origination, discount points, lender-paid MI estimate, other). The binding APR on the Loan Estimate is computed by your LOS from the disclosed fee set; this calculator is suitable for shopping conversations.
The spread between APR and note rate quantifies the cost of fees over the loan's life. A larger spread typically means more fees per dollar borrowed.