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Mortgage comparison calculator

Easily compare two home loan offers to find the cheapest option.

The difference between a few decimal points on interest or a few dollars in fees can quickly add up over the life of a loan. Get started using a mortgage comparison calculator to see which offer is more manageable — even if that means opting for a higher interest rate or more fees.

How to use this mortgage comparison calculator

To get an accurate result, fill in all the fields.

  1. Enter how much you want to borrow under Loan amount.
  2. Type in your mortgage term in years under the Loan terms field.
  3. Enter the loan’s interest rate in the Interest rate field. Note that your monthly mortgage payments will vary depending on your interest rate, taxes, private mortgage insurance and other related fees. If you have this information available, enter the annual percentage rate (APR), which is the total cost of a loan and includes fees.
  4. Hit Calculate.
  5. Review your results.

The results will show you how much you can expect to pay for each mortgage over the life of the loan. But when comparing mortgages, it’s a good idea to compare all the specifics.

How to compare mortgages

Compare the following information to see how two mortgages stack up against each other:

  • Loan lengths. The length of the loan determines how long you have to repay the loan and will affect the interest rate you pay.
  • Mortgage rates. Verify whether interest rates are fixed or adjustable. Also compare APRs to quickly determine the total loan cost. The APR takes into account interest rates and all upfront lender and closing costs.
  • Closing costs and fees. Compare closing costs and fees line by line to see if one mortgage provider is charging any excessive costs and fees that the other is not.
  • Monthly principal and interest payment. Compare how much of your payment will go toward paying down the principal and how much will go toward interest.
  • Down payment requirements. Look at how much each lender requires for a down payment.
  • Points and lender credits. Points lower your interest rate in exchange for paying an upfront fee, while lender credits lower your closing costs in exchange for accepting a higher interest rate.
  • Total monthly costs. These will include your principal and interest, mortgage insurance, property taxes, homeowners insurance and homeowner association dues, if applicable.

Are mortgages sold after they’re originated?

Federal banking laws permit banks and other companies to sell mortgages or transfer the servicing rights to other investors or institutions. In 2019, more than 84% of home-purchase loans were sold after origination.
While consumer consent is not required, the originating company or new services must notify you of the transfer. But even if your mortgage is sold, your mortgage rate, terms and other conditions will not change — these are locked into your contract.

Should I refinance my mortgage for a new one?

Refinancing depends on your unique situation. Generally, you could benefit from refinancing if your credit score has improved, you’ve recently closed other loans in your name or you have a higher salary than when you first took out your loan.
It might not be the right time to refinance if your credit score has recently taken a hit, you’ve been late on loan repayments or you took a pay cut since you took out your loan. It might also be difficult to qualify for more competitive rates and terms if you’ve taken on more debt since borrowing.
How to refinance your mortgage

How can I take out multiple loans at once?

It’s possible to take out multiple loans at once, but it might not be a great idea. You might not qualify for the most competitive rates if you’re currently paying off multiple debts since that affects your debt-to-income ratio (DTI).
You also run the risk of overborrowing by going around a lender’s borrowing limits. This can make it difficult for you to afford your loan repayments and puts you more at risk for default.
Buying a second home with equity

Bottom line

Torn between two home loan offers? Thinking about refinancing? This mortgage comparison calculator can help you decide which is best.
Check out our first-time homebuyer guide for a complete walkthrough on how to borrow for your dream home.

Explore other mortgage calculators

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