Compare Loan Options
Compare two different loan scenarios to find the best option for your situation
A
B
Apply the same extra payment to both loans for fair comparison
Loan Comparison Tips
Compare Total Costs
Look beyond monthly payments. Include closing costs, points, and total interest over the loan term.
Consider Your Timeline
If you plan to move or refinance soon, higher upfront costs for lower rates may not pay off.
Calculate Break-Even Point
Determine how long it takes for a loan with higher upfront costs to become more cost-effective.
Smart Loan Shopping
Making the right loan choice can save you thousands. Here's what to consider:
Loan Shopping Resources
Frequently Asked Questions
What are points and should I pay them?
Points are prepaid interest where 1 point = 1% of the loan amount. Each point typically reduces your rate by 0.25%. Pay points if you plan to stay in the home long enough to recoup the cost through lower monthly payments.
How do closing costs affect my decision?
Closing costs vary significantly between lenders and loan types. Include all upfront costs in your comparison, not just the interest rate. A loan with a slightly higher rate but lower closing costs might be better for your situation.
Should I choose the loan with the lowest monthly payment?
Not necessarily. A lower monthly payment might come with higher total interest costs over the loan term. Consider your cash flow needs, how long you plan to keep the loan, and total cost of borrowing.
What is the difference between APR and interest rate?
Interest rate is the cost of borrowing the principal. APR includes the interest rate plus other loan costs like origination fees, making it a better tool for comparing loans. Always compare APRs when shopping for loans.
Important Disclaimer
This calculator provides estimates for comparison purposes only. Actual loan terms, rates, closing costs, and fees may vary based on your creditworthiness, loan program, lender requirements, and market conditions. Always obtain official loan estimates from lenders for accurate comparisons. This tool should not replace professional financial advice from qualified mortgage professionals.
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