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Mortgage amount |
Original or expected balance for your mortgage. |
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Interest rate |
Annual interest rate for this mortgage. |
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Interest rate after taxes |
Annual effective interest rate after taxes are taken into account. |
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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. |
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Monthly payment |
Monthly principal and interest payment (PI). |
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Federal tax rate |
The marginal federal tax rate you expect to pay. |
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State tax rate |
The marginal state tax rate you expect to pay. |
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Annual Percentage Rate (APR) |
A standard calculation used by lenders. It is 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. |
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APR after taxes |
Annual percentage rate after taxes are taken into account. Unlike your after-tax interest rate the APR after taxes takes closing costs into account. |
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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. |
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Discount points |
Total number of "points" purchased to reduce your mortgage's interest rate. Each "point" costs 1% of you loan amount. |
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Other fees |
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. |
