Mortgage Comparison Calculator
Compare up to 3 different mortgage options side-by-side. Analyze rates, terms, payments, and total costs to find the best mortgage for your situation.
Mortgage Comparison
| Metric | Option 1 | Option 2 | Option 3 |
|---|---|---|---|
| Monthly Payment | $0.00 | $0.00 | $0.00 |
| Total Interest | $0 | $0 | $0 |
| Total Cost | $0 | $0 | $0 |
| Break-Even Point | N/A | N/A | N/A |
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Mortgage Comparison Insights
Understanding Points
Discount points lower your interest rate but increase upfront costs. Each point typically costs 1% of your loan amount and may lower your rate by 0.25%.
Consider if you plan to stay long-term
Break-Even Analysis
Calculate how long it takes for the interest savings to offset the upfront costs of points and fees.
Formula: Extra Cost ÷ Monthly Savings
Rate vs. Payment
Lower rates don't always mean lower costs. Consider total interest paid over the life of the loan.
Focus on total cost, not just payment
How to Compare Mortgages Effectively
Comparing mortgages can save you thousands of dollars over the life of your loan. The key is to look beyond the monthly payment and consider the total cost of each option.
Key Factors to Compare
- Interest Rate: The most important factor affecting your total cost
- Points: Upfront costs that lower your rate (good for long-term ownership)
- Fees: Origination fees, appraisal costs, title insurance, etc.
- Term Length: 15-year vs. 30-year loans have very different total costs
- Prepayment Penalties: Fees for paying off the loan early
- Customer Service: Important for the life of your loan
Understanding APR vs. Interest Rate
The interest rate is the cost of borrowing, while APR includes the interest rate plus certain fees. APR gives you a more complete picture of the loan's true cost, especially when comparing loans with different fee structures.
Break-Even Analysis
When comparing loans with points or different fees, calculate the break-even point: how long you'll need to own the home for the interest savings to exceed the upfront costs. If you plan to sell before the break-even point, the lower-fee option may be better.
Loan Types to Compare
Fixed-Rate Mortgages
- Stable payments
- Protection from rate increases
- Higher initial rates
- Good for long-term planning
Adjustable-Rate Mortgages (ARMs)
- Lower initial rates
- Rates can increase over time
- Good for short-term ownership
- More complex to compare
Getting Multiple Quotes
Don't settle for the first mortgage offer you receive. Get quotes from multiple lenders including banks, credit unions, online lenders, and mortgage brokers. Each may have different rates, fees, and terms.
Tip: Use this calculator to compare your mortgage options objectively. Remember that the "best" mortgage depends on your personal situation, how long you plan to own the home, and your risk tolerance. Consider consulting a mortgage professional for personalized advice.