• Note Rate: The actual interest rate on your loan note. This determines how much interest you are charged every month.
• Discount Points: Upfront fees paid to lower your interest rate. 1 point = 1% of the loan amount.
• Lender Credits: A rebate from the lender to cover your closing costs, usually in exchange for a slightly higher interest rate.
• 2-1 Buydown: A temporary subsidy. Your payment is calculated at 2% below the note rate for Year 1, and 1% below for Year 2. The difference is paid upfront (cost) at closing.
• Effective APR (Hold Period): The Annual Percentage Rate calculated specifically for the time you own the loan. It accounts for upfront fees spread over just your hold period (e.g., 5 years) rather than the full 30 years.
• Equity Built: The amount of principal you have paid off during the time you held the loan.

Included in calculations: Principal & Interest payments, lender charges (points, fees, buydown costs), lender credits, and loan payoff.

Not included (unless added): Property taxes, homeowners insurance, HOA dues, title fees, or recording fees. The "Optional Monthly Add-on" field allows you to manually include a flat amount for taxes/insurance to see a realistic monthly cash flow.