What's my APR

What is an APR?

What's my APRWhen you take out a mortgage loan there are a lot of costs that apply for the processing of that loan. The costs associated vary by lender and situation but generally include the following:

- Administration Fee
- Application Fee
- Private Mortgage Insurance
- Broker Fee
- Audit Fee
- Closing Fee
- Origination points
- Processing Fee
- Credit Reports
- Document preparation
- Underwriting

Not all these fees are required at the time of starting the loan process but are required at different stages. Some of these costs can be high while others are not. However, if the borrower would be asked to pay these fees upfront at the same time, it would simply not be feasible. To make the process easier for all parties involved. The costs of fees associated with the mortgage are converted into an annual percentage rate. This is known as APR.

What do APR calculators do?

Annual Percentage Rate calculators estimate the APR of a loan based on the information submitted. The relevance of this is that a borrower can use the APR to compare the offers of different lenders to estimate how much a loan is costing them from different lenders. Due to the Truth in Lending Act, lenders are required by law to disclose the APRs. By comparing different APRs a borrower can make sound decisions on where they are getting a better deal on their mortgage loan.

To use an APR calculator all you have to do is enter the following information:

- Loan Amount
- Interest Rate
- Loan Term
- Origination Fee