Use a rate of 3.95% for a 30 year term. This is the APR. Assume you are making a down payment of 10%, so you will borrow 90% of the purchase price you selected.
1. Calculate the monthly principal and interest (P&I) payment required if the loan is financed over a typical 30 year repayment term.
2. Now, recalculate the payment based on a repayment term of 20 years. Use the 30 year rate—the rates are often the same or very similar for these loan terms.