Use this APR Calculator to learn the hidden APR charges

The rate is what you're shopping for; the APR is the price!

These rates are advertised by other lenders but you need to check the APR to understand the price. Most advertisers plan on you not understanding the APR.

If you are being quoted a 4.300% 30 Year Fixed Rate loan for $417,000 with 4.900% APR, the APR Fees amount would be $28,172 plus other Closing Costs.

We can offer you a 4.25% rate with a 4.408% APR which means that the APR charges would be $7,726. You get a lower rate and save about $20,000 plus you get our Guarantee. Do you understand that the APR is the price?

You don't pay us and you get a Free Rebate, so our APR is lower than the rate.
Click here to check our Guaranteed low rates with the lowest APR

To check the charges hidden in an APR, change the Other Fees amount on this calculator until the APR approximates the advertised or quoted APR.

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Advertisement sources:
Fox TV Network; Los Angeles 05/12/2009
4.25% 30 Year Rate. 4.504% APR CashCall.com

Amerisave.com, 05/05/09.
4.125% rate 4.527% APR 30 Year Fixed Rate
4.000% rate 4.526% APR 15 Year Fised Rate

Yahoo, 4/22/2009. Search term: current mortgage rates
4.3% 30 Year Mortgage Rates Direct Lender. Close in 10 days. PreApproved In Minutes. 4.9%APR. www. amerisave.com

Yahoo, 4/23/2009. Search term: current mortgage rates
Fixed Refinance Rates 4.25% 15 Yr APR 4.67%. All Time Lows. 30 Year Fixed @ 4.75% (4.95%APR). www. HomeMortgageMatch.com

Definitions

Annual Percentage Rate (APR)
A standard calculation designed to help borrowers compare different loan options. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.

Other fees to include
Any other fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.

Mortgage amount
Original or expected balance for your mortgage.

Term in years
The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Interest rate
Annual interest rate for this mortgage.

Monthly payment
Monthly principal and interest payment (PI).

Total payments
Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal.

Total interest
Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal.

Loan origination percent
The percent of your loan charged as a loan origination fee. For example, a 1% fee on a $120,000 loan would cost $1,200.

Points paid
Total number of "points" purchased to reduce your mortgage's interest rate. Each "point" costs 1% of your loan amount.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.