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Mortgage Comparison Calculator

One of the most important steps you can take when obtaining a home loan is mortgage rate shopping.

Most home buyers (and those looking to refinance) don’t even bother to do it.

Studies show they only take the time to get a single rate quote from one lender, the first one they speak with.

I get it, it’s not fun to reach out to lenders and run all the numbers and deal with sales pitches.

But it’s the quickest and easiest way to save potentially thousands of dollars or more.

Mortgage Comparison Calculator

Compare 2-5 mortgage offers side by side — monthly payment, points, fees, lender credits, APR, and total cost over your planned holding period — to see which one is actually the better deal once every cost is accounted for.

Loan Details

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Used for all offers being compared — assumes you’re shopping quotes for the same loan amount
yrs
Total cost comparison below is calculated over this horizon

Loan Offer 1

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$
$
A credit toward closing costs, sometimes offered in exchange for a slightly higher rate

Loan Offer 2

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yrs
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$
$

Loan Offer 3

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yrs
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$
$

Loan Offer 4

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yrs
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$
$

Loan Offer 5

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yrs
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$

Side-by-Side Comparison

Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, legal, or tax advice. APR is calculated using the standard Truth in Lending Act method — solving for the rate at which the amount financed (the loan amount, less points and fees entered here, net of any lender credit) equals the present value of the monthly principal-and-interest payments — but real disclosed APR may differ slightly, since actual APR calculations exclude certain third-party fees (like appraisal or title insurance not paid to the lender) that this simplified version doesn’t distinguish from lender fees. When “Finance Costs Into Loan?” is set to Yes, net closing costs (points + fees − lender credit) are added to the loan balance, points are calculated on the original loan amount you entered, and monthly payments are calculated on the larger balance; if an offer’s lender credit exceeds its costs, nothing is financed. “Total Cost Over Horizon” is the interest you pay over your planned holding period plus all points and fees (net of credits), counted exactly once whether you pay them in cash or roll them into the loan. Principal you pay down is not treated as a cost, since it reduces what you owe (or builds equity), and so any balance still owed at the end of your horizon is accounted for on an equal footing across all offers. The “Best Offer by Holding Period” section repeats the same total-cost calculation at 3, 5, and 10 years. It does not include property tax, insurance, HOA, or PMI, since those are typically the same across competing offers on the same property and wouldn’t change which offer is cheaper. The “Becomes Cheaper Than Lowest-Cash Offer After” row shows how long you would need to keep each loan before its total cost (interest plus points and fees) drops below that of the offer with the lowest cash due at closing, using the same calculation as the Total Cost row; it shows “Immediately” if an offer is cheaper from the first month and “Never” if it doesn’t become cheaper. Actual loan terms, fees, and APR depend on your lender, credit profile, and the specific Loan Estimate you receive. Consult a licensed mortgage professional before making any decision.

My mortgage comparison calculator can take some of the guesswork (and legwork) out of the loan comparison process.

Instead of speaking with lenders and comparing Loan Estimates (LEs) manually, you can enter the key details of each one into this calculator.

[Searching for a home loan? See your options with dozens of lenders fast.]

The things to focus on are obviously the mortgage rate (always top of mind) and the lender fees.

Lender fees include things like the loan origination fee, processing and underwriting fees, and discount points.

Different lenders charge different fees. And you might get offers where they charge one of the items above but not the other.

You might even come across a lender that charges you zero in fees thanks to a lender credit, which is an option that is also incorporated into the calculator.

There will also be third-party fees for things like title insurance, escrow, taxes, homeowners insurance, etc. But those aren’t the focus because they’re typically not a core part of the loan offer. And don't differ from bank to bank.

How to Use the Mortgage Comparison Calculator

First, you enter your loan amount and how long you plan to keep the loan.

This is another key consideration when rate shopping because the expected tenure in the home or loan can greatly alter the math.

For example, if you plan to stay in the home/loan for an entire 30 years, the lowest interest rate possible will save you the most money, even if it costs money upfront.

Conversely, if you think the property is a short-term hold, maybe only three years, the upfront costs matter more since they take time to be recouped via a lower monthly payment.

So think hard about how long the mortgage will actually be held.

From there you can compare up to five loan offers, or as little as two, side by side.

Simply enter how many offers you want to compare and then move onto the Loan Offer sections.

In this section you can name each lender (e.g. Citi or Rocket or Chase) or just enter Lender A, B, C, etc.

You’ll need to enter the rate quote for each (interest rate), the loan term (30 years most common), the discount points (if applicable), and the other closing costs.

The discount points are really important because there are a lot of mortgage lenders out there that will offer a “low rate” but charge you two points at the same time.

For example, they’ll say hey, we can get you a rate of 5.99% on your $500,000 loan, but you have to pay $10,000 at closing. Ouch!

Meanwhile, a different lender might offer a slightly higher rate of say 6.25% with just one point or even less!

Finally, there is the lender credit box, which is the opposite of points. You get credit from the lender for accepting a slightly higher interest rate.

For example, a lender might credit you $3,000 toward closing costs for a rate of 6.5%. That way you pay nothing out of pocket, nor is anything rolled into the loan.

Speaking of, make sure nothing is rolled into the loan amount, otherwise you need to adjust that option accordingly.

Some lenders will make an offer look more attractive by “hiding” these costs in the loan amount.

Then the monthly payment only goes up marginally, but you’re paying interest on those costs for as long as you hold the loan.

Not to mention your outstanding loan amount will be larger when it comes time to sell or refinance.

You can specify if these costs are paid in cash or financed (added to the loan balance).

Once you’ve filled in all the information on your loan offers, the calculator will show you which offer is best based on your expected hold time.

So if you select seven years, it’ll tell you which loan offer is the cheapest in terms of total costs (interest + fees) during that time.

This should make it easier to determine which loan offer is best, as it’s not always the lowest mortgage rate that wins.

You can also use this as a negotiating tool and go back to the lender with the less desirable offer and ask them to make it even better!

Colin Robertson
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