Mortgage Comparison Calculator
Compare two mortgage scenarios side by side. See the difference in monthly payments, total interest, and overall cost.
Loan A
Loan B
| Loan A | Loan B | Difference | |
|---|---|---|---|
| Monthly Payment | $2,085 | $2,700 | +$615 |
| Total Interest | $430,629 | $166,070 | -$264,559 |
| Total Cost (incl. fees) | $750,629 | $489,270 | -$261,359 |
| Interest Savings | Loan B saves $264,559 in interest | ||
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Compare actual mortgage offers from multiple lenders in minutes — no credit impact.
Frequently Asked Questions
Should I get a 15-year or 30-year mortgage?
A 15-year mortgage saves you a massive amount in interest but requires higher monthly payments. On a $300,000 loan at 7%, the 30-year payment is $1,996/month with $418,527 in total interest. The 15-year payment is $2,696/month but only $185,586 in total interest — a savings of $232,941. Choose the 15-year if you can comfortably afford the higher payment and still save for retirement. Choose the 30-year if you need the lower payment or want to invest the $700/month difference in the stock market.
How do I compare mortgage offers from different lenders?
Focus on the APR, not just the interest rate. APR includes the rate plus lender fees, points, and mortgage insurance, so it’s the true cost of borrowing. Compare the Loan Estimate form (which lenders must provide within 3 business days of application) side by side. Look at: interest rate, APR, total closing costs, monthly payment, and whether the rate is locked. Apply to 3-5 lenders within a 14-day window — credit bureaus treat multiple mortgage inquiries as one hard pull if done close together.
What are mortgage points and are they worth buying?
One discount point costs 1% of your loan amount and typically reduces your rate by 0.25%. On a $300,000 loan, one point costs $3,000 and saves roughly $50/month. You’d break even in 60 months (5 years). Buy points if you’re certain you’ll keep the loan 5+ years — the longer you stay, the more you save. Don’t buy points if you might refinance or move within 5 years, because you won’t recoup the upfront cost. Lender credits work in reverse — you accept a higher rate in exchange for the lender covering some closing costs.
Is a fixed-rate or adjustable-rate mortgage better?
Fixed-rate mortgages give you payment certainty — your principal and interest never change. ARMs start with lower rates (typically 0.5-1% below fixed rates) but adjust after 5, 7, or 10 years. A 5/1 ARM on $300,000 might save you $150/month for the first 5 years compared to a fixed rate, but could jump significantly at adjustment. Choose an ARM if you’re confident you’ll sell or refinance before the fixed period ends. Choose fixed if you plan to stay long-term and want zero payment surprises.
How much difference does 0.5% in interest rate make?
On a $300,000 30-year loan, a 0.5% rate difference changes your monthly payment by about $90 and your total interest by roughly $32,000 over the life of the loan. Going from 7% to 6.5% drops your payment from $1,996 to $1,896 and saves $32,389 in total interest. That’s why shopping multiple lenders matters — even a small rate improvement adds up to tens of thousands of dollars. Get quotes from at least 3-5 lenders to make sure you’re getting the best available rate for your credit profile.
What credit score do I need for the best mortgage rate?
A 760+ credit score gets you the best conventional mortgage rates. Between 740-759, you’ll pay a slight premium. Below 700, rates start climbing more noticeably — expect to pay 0.25-0.75% more than the best available rate. Below 620, most conventional lenders won’t approve you, though FHA loans go down to 580 (or even 500 with 10% down). Each 20-point credit score band affects your rate. On a $300,000 loan, the difference between a 660 and 760 score can cost $100-$200/month and $40,000-$70,000 over 30 years.