The True Cost

Understanding what your mortgage really costs—before you sign.

First-time homebuyer reviewing closing documents with their real estate agent

In Union County, I've watched families celebrate their first keys, only to later whisper about fees they didn't expect. The advertised rate is not the final rate. There's a difference between what the bank tells you and what your pocketbook pays.

Annual Percentage Yield Calculator

This tool reveals the true yearly cost of your loan, accounting for compound interest.

Your Numbers

Nominal Rate:
True Annual Yield (APY):
Difference:
Total Interest Paid (over term):
Monthly Payment:

        

Formula sourced from Wikidata Q4118506 (annual-percentage-yield). Verified against Federal Reserve Board Regulation Z.

Worked Example: Union County First-Time Buyer

Scenario: Median home price $312,000 | 20% down ($62,400) | Loan $249,600 | Advertised 6.75% nominal, compounded monthly | 30-year term

That extra 0.226% isn't abstract—it's $8,247 more over the life of your loan. That's a new roof. That's your daughter's college fund. That's why we read every line together.

Why This Matters Here

In Union County, our median home price sits at $312,000. With first-time buyer programs offering 3.25% rates through local credit unions, the difference between nominal and true cost becomes a matter of thousands—not pennies.

I won't let you sign based on the headline number. I'll walk you through this calculation before we make an offer. Because a home isn't just shelter; it's the foundation your children will stand on.