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.
Enter how much you want to borrow under Loan amount.
Type in your mortgage term in years under the Loan terms field.
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.
Hit Calculate.
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
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.
Anna Serio is a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY.
Cornerstone Home Lending offers a standard list of mortgage loans with some portfolio options, but you have to contact a loan officer for rates and fees.
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Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
