When searching for a mortgage, (for example, on bankrate.com) you are usually given a list, with each mortgage offer including (details made up):

APR     = 3.6%
RATE    = 3.5%
Term    = 15 Years
$/Month = $1,500
Points  = 1.0
Fees    = $1,200

What I'm trying to understand is a whether the final payable amount ($1,500*12*15=$270,000) includes only originally-specified principal and interest on it? Or does it also include the fees? And the cost of Points? Or are fees and points in addition to $270,000 listed in the offer?

  • I'm assuming such a format is standard; but if not; i'm fine if the answer is specific to bankrate.com
    – user2932
    Dec 6, 2017 at 0:12
  • 3
    Usually points & fees are paid up front, at least in my (admittedly limited) experience, although they can be included if you raise the mortgage amount. E.g. if you're putting $100K on the house, your total mortgage would be $102.2K. So the default here would likely be to pay $2200 up front, and have a $100K mortgage.
    – jamesqf
    Dec 6, 2017 at 2:34
  • 3
    Please provide an actual example including nominal loan amount, instead of "details made up". It is easy (for someone who understands the relevant formulas) to determine the answer to your question based on the actual numbers.
    – Jasper
    Dec 6, 2017 at 5:26

1 Answer 1


In general, the rate is used for the calculation, and the APR is the rate adjusted for any fees or other relevant items that affect the rate.

With a set of actual numbers, you can answer this question simply by entering the information (using rate) into any standard mortgage calculator. You should get the exact same monthly payment (to the penny). You should know how much you are borrowing, and then look at the amount of the loan. If the loan amount is higher, they are adding some (or all) fees into the total mortgage amount. As for points, they should be already included in the final rate.

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