How do closing costs impact the interest rate (APR)?
If you choose to finance your closing costs, the monthly loan payments will be higher than if you had paid the closing costs out-of-pocket. In order to help borrowers compare loans, lenders use a standard calculation called annual percentage rates (APR) which takes into account the closing costs. Use this calculator to itemize the closing costs and to compare loans with different rates, fees or terms.
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Borrowing Guide
- How much home can I afford?
- Should I pay extra points for a lower interest rate?
- How do closing costs impact the interest rate (APR)?
- What are the tax savings generated by my mortgage?
- Should I convert to a bi-weekly payment schedule?
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