Please use this calculator to compare up to three mortgage lender programs at one time. Keep in mind that the interest rate is not the only item you need to focus on. Starting with the interest rate, ask the mortgage broker for both the “Interest Rate” and the “APR”. The important number for this calculator is the “interest rate”.
The APR contains the interest cost over the term of the loan and the lending costs rolled in. While this is an accurate representation of the cost of paying off the loan in for example 30 years, it does not permit direct comparison between one lender and another.
The actual interest rate has no costs included. You will want them to provide the costs so you can compare them. One of the most popular bait and switch techniques is providing a lower rate e.g. 1/4 point and charging much higher costs. This calculator will help you compare the entire package.
You are encouraged to read this article about buying discount points to lower the interest rate. There are additional calculators included in the article.
This site along with LoganAndersonllc.com are provided for your use. Please read blog articles and use our other calculators on this site which is where we provide more detailed information to our clients. Visit the LoganAndersonLLC site to search for properties and read more blog articles.