Mortgage Comparison Calculator
Compare two mortgage options side-by-side to find the best deal
Mortgage Comparison Settings
Mortgage #1
Upfront payment as percentage of loan amount
Additional upfront payment
Mortgage #2
Upfront payment as percentage of loan amount
Additional upfront payment
Comparison Summary
| Metric | Mortgage #1 | Mortgage #2 | Difference |
|---|---|---|---|
| Principal | $300,000 | $300,000 | +$0 |
| APR | 6.620% | 7.560% | +0.940% |
| Payment | $1,896.204 monthly | $2,097.644 monthly | +$201.439 per month |
| Term | 30 years | 30 years | +0 years |
| Upfront Expenses | $4,000 | $2,000 | $2,000 |
| Total Interest | $382,633.465 | $455,151.669 | +$72,518.204 |
| Total Cost | $686,633.465 | $757,151.669 | +$70,518.204 |
Key Insights
💰 Mortgage #2 is cheaper by $70,518.204 over the life of the loan.
📊 Monthly payment difference: +$201.439(Mortgage #2 costs less per month)
📈 APR difference: +0.940%(Mortgage #2 has lower APR)
Quick Comparison
Mortgage #1
APR: 6.620%
Mortgage #2
APR: 7.560%
Recommended
Saves +$70,518.204 total
Comparison Tips
Compare APR instead of just interest rate for true cost
Consider both monthly payment and total cost
Factor in all upfront costs and fees
Shorter terms mean higher payments but less interest
Choose based on your budget and financial goals
Shop around with multiple lenders for best rates
How to Compare Mortgage Deals
Key Factors to Consider
Annual Percentage Rate (APR)
APR incorporates all loan costs including interest, points, and fees. It's the best metric for comparing the true cost of different mortgages.
Monthly Payment
Consider how the monthly payment fits your budget. A lower payment isn't always better if it comes with higher long-term costs.
Loan Term
Shorter terms mean higher monthly payments but significantly less interest paid over the life of the loan.
Understanding Costs
Mortgage Points
Each point costs 1% of the loan amount and typically reduces your interest rate by 0.25%. Calculate if the upfront cost is worth the monthly savings.
Upfront Fees
Include all closing costs, origination fees, and other upfront expenses when comparing total loan costs.
Total Interest
Look at the total interest paid over the life of the loan, not just the interest rate. This shows the true long-term cost.
Making the Right Choice
Choose Mortgage #1 if:
- Lower total cost over loan term
- Lower APR despite higher fees
- Monthly payment fits your budget
- You plan to stay in the home long-term
Choose Mortgage #2 if:
- Lower monthly payment needed
- Less upfront cash required
- Better terms for your situation
- You might refinance or move soon