Mortgage Comparison Calculator
Compare two fixed-rate mortgage offers by payment, upfront costs, interest, remaining balance, and break-even timing.
Loan Details
Option A
Option B
Option A Summary
- Monthly Payment
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- Interest Paid
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- Balance After Period
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- Total Cost To Payoff
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Option B Summary
- Monthly Payment
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- Interest Paid
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- Balance After Period
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- Total Cost To Payoff
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Recommendation
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Calculation Steps
Understanding Mortgage Comparisons
A lower rate is not always the lower-cost offer once upfront costs and time horizon are included.
Monthly Payment
Monthly payment compares principal, interest, and monthly fees. It is useful for cash flow, but it is not the full cost of a mortgage offer.
Closing Costs
Closing costs are upfront cash or rolled costs. A lower-rate offer with higher closing costs may need months or years to break even.
Comparison Period
The comparison period is the time you expect to keep the loan. Short horizons make upfront costs more important; longer horizons make interest more important.
Mortgage Comparison Examples
Use these scenarios before choosing between loan estimates.
Lower rate, higher points
Compare the cheaper monthly payment against the extra closing cost to see whether the lower rate pays back before you sell or refinance.
15-year vs 30-year
A shorter term usually has a higher payment but much lower interest and a faster balance decline.
Lender fee comparison
Add monthly servicing or insurance-related fees to avoid choosing a lower rate with higher recurring costs.
Mortgage Comparison Calculator FAQ
Common questions about closing costs, break-even timing, holding periods, and loan fees.
Why compare mortgages over a time horizon?
Many borrowers move, refinance, or pay off a loan before the full term. Comparing over a realistic holding period can be more useful than only comparing total 30-year cost.
How do closing costs affect the comparison?
Higher closing costs can offset a lower interest rate. The calculator includes upfront costs so you can see when a cheaper monthly payment actually breaks even.
What should monthly fees include?
Use this field for recurring loan-specific costs that differ between offers, such as servicing fees or required monthly charges. Do not include normal utilities or maintenance.
What does break-even mean?
Break-even is the point where the lower ongoing cost of one option catches up with its higher upfront cost. Before that point, the other option may be cheaper.
Does this compare adjustable-rate mortgages?
No. This page is designed for fixed-rate comparisons. Adjustable-rate loans need separate assumptions for rate resets and future payments.