Mortgage Rate Calculator

Comprehensive mortgage rate analysis tool. Calculate APR, effective rates, rate impacts, and compare multiple lender scenarios to find the best mortgage deal.

Loan Basics

Loan Amount ($) Loan Term (years)

Rate Scenarios

Base Interest Rate (%) Rate without points or fees Alternative Rate Option (%) Optional: Compare with another rate Points Paid Discount points purchased (1 point = 1% of loan) Rate Reduction Per Point (%) How much rate drops per point

Loan Costs & Fees

Origination Fee ($) Lender's processing fee Application Fee ($) Upfront application cost Processing Fee ($) Administrative processing cost Underwriting Fee ($) Loan evaluation fee Other Lender Fees ($) Additional lender charges

Property Costs (for APR calculation)

Property Taxes ($ annually) Annual property tax amount Homeowners Insurance ($ annually) Annual insurance premium PMI/MIP ($ monthly) Private mortgage insurance

Tax Considerations

Marginal Tax Rate (%) Your highest tax bracket rate State Tax Rate (%) State income tax rate Itemize Deductions? Can you deduct mortgage interest?

Comparison Analysis

Expected Ownership (years) How long you plan to own the home Alternative Investment Return (%) What you could earn elsewhere

Enter loan details and analyze rates.

How it works

This comprehensive calculator analyzes mortgage rates from multiple perspectives: true APR including all costs, after-tax effective rates, payment impacts, and total cost comparisons to help you find the best mortgage deal.

Example

$500K loan at 6.5% with $5,000 fees: True APR = 6.65%. After 22% tax deduction, effective rate = 5.07%. Compare scenarios to find optimal lender.

FAQ

What's the difference between interest rate and APR?

Interest rate is the base cost of borrowing. APR includes the interest rate plus all loan fees, giving you the true annual cost. A lower interest rate isn't always better if fees are high.

How do points affect my effective rate?

Points are prepaid interest that reduce your rate. The calculator shows if the upfront cost is worth the lower monthly payments based on how long you'll keep the loan.

What is after-tax effective rate?

If you itemize deductions, mortgage interest is tax-deductible. Your effective rate is lower than the stated rate by your tax savings, making the true cost of borrowing lower.

How should I compare different lender offers?

Don't just compare rates - compare total APR including all fees. Use the rate sensitivity analysis to see how small rate differences impact your total cost over time.

When do higher fees make sense?

Higher fees can be worth it for significantly lower rates if you're keeping the loan long-term. The calculator shows break-even points and net present value to help you decide.