Compare Mortgage Offers
Mortgage Loan Comparison Calculator
Compare two mortgage offers using the same home price and down payment. Enter each loan's interest rate, term, discount points, and lender fees to compare monthly payment, interest, remaining balance, and financing cost over the years you expect to keep the mortgage.
Last reviewed: September 1, 2026
Mortgage Loan Comparison Calculator
Compare two mortgage offers by rate, term, points, lender fees, monthly payment, and long-term cost.
Property & Loan Amount
Your Loan Comparison Results
Loan B has the lower estimated financing cost over 7 years by about $4,531. This horizon comparison includes upfront points/cash lender fees, interest paid, and estimated PMI. It excludes principal because principal becomes equity rather than a financing cost.
See If You Can Get Pre-Approved
You have an estimated mortgage result. Continue to pre-approval to explore mortgage options for your home-buying scenario.
Checking options does not change your calculator estimate. Loan availability, rates, and eligibility depend on lender and borrower qualifications.
| Comparison | Loan A | Loan B |
|---|---|---|
| Interest rate | 6.500% | 6.125% |
| Loan term | 30 years | 30 years |
| Financed amount | $400,000 | $400,000 |
| Monthly P&I | $2,528 | $2,430 |
| Estimated all-in payment | $3,178 | $3,080 |
| Discount points | $0 | $4,000 |
| Cash lender fees | $3,500 | $5,500 |
| Financed lender fees | $0 | $0 |
| Total interest | $510,178 | $474,959 |
| Estimated total PMI | $0 | $0 |
| Fee-adjusted APR proxy | 1200.000% | 1200.000% |
| Scheduled payoff | 30 years | 30 years |
| Comparison | Loan A | Loan B |
|---|---|---|
| Remaining balance | $361,665 | $359,352 |
| Principal repaid | $38,335 | $40,648 |
| Interest paid | $174,040 | $163,509 |
| Estimated PMI paid | $0 | $0 |
| P&I payments made | $212,375 | $204,157 |
| Financing cost through horizon | $177,540 | $173,009 |
Important Loan Comparison Assumptions
Results are estimates for educational planning. The calculator compares two mortgage offers using the inputs shown and does not reproduce a lender's official APR calculation or Loan Estimate. The fee-adjusted APR proxy is an approximation based on entered points and lender fees. Taxes, insurance, HOA dues, mortgage insurance, prepaid items, credits, and other closing costs can differ in an actual transaction.
Compare Mortgage Rates
Compare Current Mortgage Offers
After comparing your loan scenarios, review current mortgage offers from participating lenders.
What should you compare between mortgage offers?
The lowest advertised interest rate is not automatically the lowest cost mortgage. Two offers can have different rates, terms, discount points, lender fees, financed costs, mortgage insurance, and monthly payments. The most useful comparison depends partly on how long you expect to keep the loan.
This calculator is designed around that decision. It uses the same home price and down payment for both scenarios, then lets you change the loan-specific pricing so the results are easier to compare on an apples-to-apples basis.
Rate vs. points vs. lender fees
A mortgage with a lower rate can require more cash at closing if the lender charges discount points or higher origination fees. Another loan may have a higher rate but lower upfront cost. Which option costs less can change depending on how long you keep the mortgage.
Interest rate
Affects the scheduled principal-and-interest payment and how much interest accrues over time.
Discount points
Upfront charges expressed as a percentage of the loan amount and typically paid to obtain a particular rate.
Other lender fees
Origination or lender charges entered separately from discount points.
Loan term
Changes both the required payment and the length of time interest can accrue.
Why your expected time in the loan matters
Lifetime cost is useful, but many borrowers sell, refinance, or pay off a mortgage before the scheduled end of the term. A loan that looks cheaper over 30 years may not be cheaper if you expect to refinance or move after five or seven years.
The comparison-horizon input lets you evaluate financing costs through the year you select. The calculator adds cash-paid points and lender fees to the interest and estimated PMI paid through that horizon. Principal is not counted as a financing cost because it reduces the balance and becomes home equity.
Monthly payment is important, but it is not the whole comparison
A lower monthly payment can improve affordability and cash-flow flexibility, but it can also result from a longer repayment term or a larger amount of financed fees. Review the monthly payment together with the remaining balance, interest paid, and upfront cost.
The calculator therefore identifies the lower monthly-payment loan separately from the lower-cost loan over your selected horizon. Those do not have to be the same mortgage.
What does the fee-adjusted APR proxy mean?
The calculator includes an estimated fee-adjusted APR proxy to help illustrate how points and lender fees can change the effective cost of borrowing. It is not intended to reproduce the APR disclosed by a lender.
Official APR calculations follow specific disclosure rules about which finance charges are included and how they are timed. Use the lender's Loan Estimate and Closing Disclosure when comparing official APR figures.
How to compare two Loan Estimates
Use the same loan amount and transaction assumptions
Compare offers for the same property, down payment, occupancy, loan type, and similar lock period whenever possible.
Enter each interest rate and term
Do not assume the loans have the same rate or repayment period.
Enter points separately from other lender fees
This helps distinguish the cost of buying down the rate from other loan charges.
Set a realistic comparison horizon
Use the number of years you reasonably expect to keep the mortgage before selling, refinancing, or paying it off.
Review payment, cost, and remaining balance together
The best loan for monthly cash flow may differ from the one with the lowest financing cost over your planned horizon.
Discount points and break-even thinking
When one loan charges more upfront in exchange for a lower rate, the relevant question is how long the monthly or interest savings take to recover that additional upfront cost. This is often described as a break-even period.
Break-even is useful but should not be the only factor. Remaining balance, mortgage insurance, financed fees, tax considerations, and the likelihood of refinancing or selling can also affect the decision. For a dedicated analysis of discount points, use the Mortgage Points Calculator.
Frequently asked questions
Should I choose the mortgage with the lowest interest rate?
Not automatically. A lower rate may come with more points or lender fees. Compare the complete loan offer and the cost over the period you expect to keep the mortgage.
Should I compare APR or interest rate?
Review both. The interest rate drives scheduled interest, while lender-disclosed APR incorporates certain finance charges under disclosure rules. Also compare actual cash required at closing and the loan terms.
What is the best comparison period?
Use a realistic estimate of how long you expect to keep the mortgage. If you expect to sell or refinance in seven years, a seven-year comparison can be more relevant than lifetime cost alone.
Do financed lender fees increase the mortgage payment?
Yes in this calculator. When lender fees are financed, they are added to the modeled loan balance, which increases the amount being amortized.
Does the calculator include every closing cost?
No. It focuses on discount points and lender fees for comparing loan pricing. Prepaid taxes, insurance, escrow deposits, title charges, government fees, credits, and other transaction costs may also matter.
Can I use this calculator to compare a refinance with my current mortgage?
The calculator is primarily designed for comparing two mortgage offers. A refinance decision should also account for your existing loan balance, remaining term, new closing costs, and the time needed to recover those costs.
Methodology and related calculators
MortgagePaymentCalculator.io is published by Family Brands LLC. Calculator results are estimates for educational and planning purposes and are not mortgage offers, approvals, or lender quotes.