A rate ad shows you a low number in big type — then quietly bakes points and lender fees into the APR. This tool works backward from any ad to reveal exactly how much of your money is hiding inside that APR.
Reverse-engineers points • lender fees • total prepaid finance charges
For anyone rate-shopping who wants to compare offers honestly — not by the sticker rate.
Two lenders can advertise the same rate and cost you thousands of dollars apart. The difference is buried in the APR. Paste the numbers off any advertisement below and watch the real costs stack up.
How the rate climbs into the APR
The advertised rate is just the starting line. Each cost you pay up front pushes the true cost of the loan — the APR — higher.
Where your closing costs actually go
Only some of what you pay at closing counts toward the APR. Here's the split.
The full breakdown
The big number is the note rate — what your payment is actually calculated on. On its own it tells you almost nothing about cost, because it says nothing about what you paid to get it.
To advertise a low rate, a lender charges discount points and origination-type fees up front. This is money out of your pocket at closing — and it's exactly what the note rate hides.
APR spreads those prepaid finance charges back across the loan, producing a rate higher than the sticker. The gap between rate and APR is the pile of costs — this tool measures it in dollars.
Bring me any advertisement or Loan Estimate and I'll show you exactly what you'd be paying to get that rate — and whether it's actually the better deal. No sales pitch, just straight numbers.