None of the loans are given away 'for free' - borrowing money always costs you something. Processing fees, origination fees, appraisal - all of these will costs you something, but these fees aren't included in the loan amount. Therefore, an APR of the loan is somehow bigger than advertised rate. Find the real APR with this calculator.
Input
Financial Analysis
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Downpayment
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$25,000.00
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Amount Financed
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$225,000.00
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Monthly Payment
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$1,403.71
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Points Value
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$2,500.00
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Origination Value
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$1,250.00
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Other Loan Fees
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$1,000.00
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Total Closing Cost
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$4,750.00
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Actual APR
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6.580%
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