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Understanding The Truth In Lending Act And How It Will Protect You, The Consumer
By Ethan Deville
People looking to purchase a new home, or looking to refinance their current home often have concerns about the fine print of their mortgage contract and how that fine print will affect the final Read more...
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Understanding Annual Percentage Rate (apr) Mortgage Calculators
By Dennis Estrada
APR stands for Annual Percentage Rate. Basically, it means the true cost of borrowing. This includes the interest rate plus all additional cost. Additional Cost usually includes points, pre-paid interest rate, loan processing fee, underwriting fee, document preparation fee, insurance, loan application fee, closing fee, and title fee.
APR remains controversial as each lender calculates differently. Lenders, bankers, brokers, and borrowers easily get confuse on calculation. By law, the lender must provide or disclose the APR to the borrower or mortgagor.
Steps to calculate annual percentage rate (APR)
- Sum up all the additional cost.
- Calculate the monthly payment.
- Calculate the APR using the total additional cost and monthly payment.
Monthly payments
Suppose the lender lends $250,000 with 6.5% interest rate, 2 discount points, and $1,200 additional cost on 30 year mortgage, the regular monthly payment equals $1,580.17. Payment equals [P(1 + r)nr]/[(1 + r)n - 1] where P means principal, r means interest rate, and n means number of period. With discount points and additional cost included, your effective monthly payment equals $1619.36. Effective Payment equals [(P + a + (P * d))(1 + r)nr]/[(1 + r)n - 1] where P means principal, a means additional cost, d means discount points, r means interest rate, and n means number of period.
Annual Percentage Rate (APR)
Now, the Annual Percentage Rate calculations equals to 6.75%. APR equals [(a + (P * d)) / (P - a - (P * d))] * 10 + r where P means principal, a means
California Mortgage Refinancing - California Refinance Rates
Avail the benefits of California mortgage refinancing. Also find how to secure best California home mortgage refinance rates which helps you find the best mortgage solution for your home financing needs to fit every situation.
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California Adjustable Rate Mortgage Loans: ARM Loans CA
In California adjustable rate mortgage loan (ARM) programs, the risk of fluctuating interest rates is shared equally between the borrower and the lender.
California Bad Credit Mortgage Loans
Bad credit OK! Find California mortgage loans to purchase your home, consolidate your debts-even save you from the edges of bankruptcy-and get yourself on the path to financial freedom.
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California FHA home loan is the best way to finance your home. Find how to secure best terms on California FHA home loans with a reliable lender.
Additional
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The Subprime Mortgage Situation
By Armand Glans
The subprime mortgage situation is hitting the credit market in the US and the house mortgage loans are once again in focus where the credit squeeze might go towards a credit crunch. If we going Read more...
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What Is A 2nd Mortgage?
By Kiesha Seaton
A 2nd mortgage refers to a secured loan taken on a property, which has already been used as a security in a loan once before. It refers to the second loan in sequence, as it is subordinate to the Read more...
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California Mortgage Refinancing - California Refinance Rates
Avail the benefits of California mortgage refinancing. Also find how to secure best California home mortgage refinance rates which helps you find the best mortgage solution for your home financing needs to fit every situation.California Home Mortgage Loan Refinance : California Home Loan Refinance
Lowest rates available on California home loan mortgage refinance and refinance your mortgage while rates are low. Get California Home Interest Loan Refinance quotes online.California Adjustable Rate Mortgage Loans: ARM Loans CA
In California adjustable rate mortgage loan (ARM) programs, the risk of fluctuating interest rates is shared equally between the borrower and the lender.California Bad Credit Mortgage Loans
Bad credit OK! Find California mortgage loans to purchase your home, consolidate your debts-even save you from the edges of bankruptcy-and get yourself on the path to financial freedom.California FHA Loans : California FHA Home Loans
California FHA home loan is the best way to finance your home. Find how to secure best terms on California FHA home loans with a reliable lender.
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