Interest Cost financial definition of Interest Cost. Interest Cost finance term by the Free Online Dictionary.

Interest Cost (IC)

A comprehensive and time-adjusted measure of loan cost to the borrower.

IC on a Mortgage: IC is what economists call an “internal rate or return.” It takes account of all payments made by the borrower over the life of the loan relative to the cash received up front. On a mortgage, the cash received up front is the loan amount less all upfront fees paid by the borrower. On an ARM, IC captures the effect of interest rate changes on the monthly payment and the balance, but future rate changes must be assumed.

Formula: IC is (i) in the formula below:

L - F = P₁ + P₂/(1 + i)2 +… (P_n + B_n)/(1 + i)n
Where:

L = Loan amount

F = Points and all other upfront fees paid by the borrower P = Monthly payment

n = Month when the balance is prepaid in full

Bn = Balance in month n

IC Versus APR: IC differs from APR in the following ways: IC is measured over any time horizon, whereas APR assumes that all loans run to term. IC may be measured after taxes whereas APR is always measured before taxes. On an ARM, IC can be calculated on any interest rate scenario whereas APR always uses a no-change scenario.

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Adjustable Rate Mortgage annual percentage rate bond pool contingent takedown option Cumulative Interest Funded Liability Late Fees Mortgage Shopping Net Interest Cost private mortgage insurance refinance Total Annual Loan Costs Total Interest Payments True interest cost Truth in Lending Utility Bond	Further, some refinanced loans, while having lower initial payments, may end up larger interest costs over the life of the loan period. Cash Out and No Closing Cost by jitesh mohan / Advertising, marketing, public relations community Evaluating a mortgage loan with various tenures can give you an idea about you the amount you can save in interest costs over the full term of the loan, and a mortgage calculator can provide you these facts and figures. Online Mortgage Calculators ? Know All About Your Existing or New ... by Lorne Wilkinson / Finance and Investment community It can also be calculated by adding depreciation, interest costs and taxes to the net earnings. The value of firms by Money Today (New Delhi, India)	Interes compuesto Interes exacto Interes fijo Interes simple Interes sobre 360 dias Intereses atrasados Intereses devengados Intereses por pagar Interesse Interesse aggiuntivo Interesse assicurabile Interesse composto Interesse costituito Interesse esatto Interesse futuro Interesse indiviso Interesse ordinario Interesse semplice Interessi fittizi Interessi in via di maturazione interest Interest Accrual Period Interest Adjustment Interest and Dividend Tax Compliance Act Interest Bearing Interest Cost Interest Coverage Interest Coverage Ratio Interest Coverage Test Interest Dates Interest Deduction interest deductions Interest Due Interest During Construction Interest Equalization Tax Interest Expense Interest in Arrears interest in property Interest on interest Interest Only Strip Interest Payable Interest Payment Interest payments interest rate Interest Rate Adjustment Period Interest Rate Agreement Interest Rate Anchor interest rate cap Interest Rate Ceiling Interest Rate Decrease Cap Interest Rate Floor	Interest Accrual Period Interest Adjusted Cost Interest Adjusted Costs interest adjustment Interest Adjustments Interest and Dividend Tax Compliance Act Interest and Dividend Tax Compliance Act of 1983 Interest and Fees During Construction Interest and Sinking Interest Based Agreement Process Interest Based Conflict Management Interest Bearing Interest Bearing Interest Bearing Account Interest Bearing Checking Account Interest Bearing Debt Interest Bearing Deposit Interest Bearing Eligible Liabilities Interest Bearing Eligible Liabilities Interest Bearing Eligible Liability Interest Bearing Gift Card Interest Buy-Down Interest Campaign interest certificate Interest Charge Domestic International Sales Corporation Interest Charge Domestic International Sales Corporations Interest Cost Interest Cover interest coverage Interest coverage ratio Interest coverage ratio Interest Coverage Ratios Interest coverage test Interest Date interest dates Interest deduction interest deductions Interest Due Interest during construction Interest during construction Interest during construction Interest during construction Interest Equalization Tax Interest Equalization Taxes interest expense interest expense Interest Expenses Interest Expenses Interest for money Interest Free Interest Free Interest Free Credit Interest Free Educational Loan interest group interest group interest group interest group

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References in periodicals archive

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Adjustable Rate Mortgage
annual percentage rate
bond pool
contingent takedown option
Cumulative Interest
Funded Liability
Late Fees
Mortgage Shopping
Net Interest Cost
private mortgage insurance
refinance
Total Annual Loan Costs
Total Interest Payments
True interest cost
Truth in Lending
Utility Bond

Further, some refinanced loans, while having lower initial payments, may end up larger interest costs over the life of the loan period.

Cash Out and No Closing Cost by jitesh mohan / Advertising, marketing, public relations community

Evaluating a mortgage loan with various tenures can give you an idea about you the amount you can save in interest costs over the full term of the loan, and a mortgage calculator can provide you these facts and figures.

Online Mortgage Calculators ? Know All About Your Existing or New ... by Lorne Wilkinson / Finance and Investment community

It can also be calculated by adding depreciation, interest costs and taxes to the net earnings.

The value of firms by Money Today (New Delhi, India)

Interes sobre 360 dias