This tutorial helps you to calculate effective annual interest rate (APR) on a mortgage loan.
Assume the loan amount is 100,000 term 30 years, rate 7%, and closing cost 2,000. The last consists of all lender charges, but not charges for appraisal, credit or other third party services.
Loan Amount (L) = 100000
Rate of Interest (R) = 7% = 0.07
Number of Period (N) = 30 years
Total Closing Costs (F) = 2000
Number of Points Paid = 0
|EMI||= 665.30 ( Click here to calculate EMI )|
|APR||= 7.24 %|
Mortgage APR is 7.24 %