Loan Comparison Calculator

Comparing offers the right way

Two offers at the same rate can cost thousands apart. What matters is the total you pay over the time you actually hold the loan, upfront cost and monthly cost together.

Rate, APR, and points

The rate sets the payment. APR folds most lender fees into one yearly figure, which beats comparing rate alone but still assumes you keep the loan the full term. Points are prepaid interest that buys a lower rate.

Hold the assumptions steady

Compare quotes priced on the same day, for the same loan amount, term, and lock period. Rates move daily, so a quote from last week is not comparable to one from today.

Separate the loan from the escrow

Taxes and insurance are the same house no matter which lender you pick. If one estimate looks cheaper, check whether it simply plugged in lower escrow figures.

Mortgage insurance changes the math

Conventional PMI can be cancelled at 20% equity. FHA mortgage insurance often lasts the life of the loan when you put less than 10% down. Two loans with identical rates diverge sharply once one of them drops the premium.

Frequently asked questions

How do I compare two mortgage offers?

Compare the monthly payment and the total cost, which is payments over the term plus upfront points and fees.

Is a lower rate always cheaper?

Not if it comes with higher points and fees. Compare total cost, not just the rate.

Should I buy points?

Only if you keep the loan past the break-even, which is the point cost divided by the monthly saving. That is often five to eight years.

What is the Loan Estimate?

A standardized three-page form every lender must provide. Page two lists fees in the same order on every offer, which makes it the cleanest way to compare.

Does applying with several lenders hurt my score?

Mortgage inquiries made inside a short shopping window count as one for scoring purposes.