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MORTGAGE CALCULATOR
COVENANT MORTGAGE
Although each individual home financing package has its own variety of features, the concept of a mortgage is really quite simple: a mortgage is a loan made to help you finance a home. Your lender advances you a certain amount of money, which you repay over a specified period.Rates, Points & Loan FeesThe total cost of your mortgage is determined by a number of different factors, most notably the interest rate, discount points, and loan fees. The expenses that contribute to the cost of your loan can be expressed as the annual percentage rate (APR).
Interest Rate refers to the percentage of your outstanding loan balance that you pay the lender each month as part of the cost of borrowing money. Your interest rate will be based on the current overall rate environment, as well as your financial profile and the specific features of your loan.
Discount Points allow you to “buy down” your interest rate at closing. One point equals 1% of your loan amount, and the more points you pay, the lower your interest rate will be, and the less you will have to pay each month. How much your rate will decrease with each discount point you pay will depend on the specific features of your loan.
Loan Fees are up-front charges to cover the cost of originating, processing, and closing your loan, among other things. An origination point is a loan fee that equals 1% of your loan amount.
When considering loan pricing, keep in mind that rates, points and fees should be considered together. The interest rate alone only tells part of the story.