Compare up to 5 loan offers side by side. See total cost breakdowns, true APR vs advertised rate, amortization schedules, points break-even, ARM rate shock simulator, equity buildup race, and affordability stress test. 100% free, no signup.
| Metric | Loan A | Loan B |
|---|---|---|
| Monthly Payment | $2,212 | $2,155 |
| Total Interest | $446,406 | $425,804 |
| Total Cost | $804,906 | $785,804 |
| True APR | 6.74% | 6.53% |
| DTI Ratio | 22.12% | 21.55% |
| Total Fees | $8,500 | $10,000 |
| Payoff Date | Apr 2056 | Apr 2056 |
| Principal Crossover | Month 233 | Month 228 |
Start by entering your loan offers — you can compare up to 5 loans at once. For each loan, enter the amount, interest rate, term in years, and loan type (fixed rate or adjustable). Click "Fees & Points" to add origination fees, discount points, closing costs, and PMI if applicable. These hidden costs often make the difference between a good and bad deal.
The calculator instantly computes the total cost of each loan including all interest, fees, and PMI over the full term. The winner is declared based on lowest total cost — not lowest monthly payment, which can be misleading. The comparison matrix shows every metric side by side with winners highlighted in green.
For a deeper analysis, use the toggle panels: the stacked cost bar shows exactly how much goes to principal, interest, and fees; the payment timeline reveals ARM rate adjustments over time; and the equity race chart shows which loan builds wealth fastest. Try the 6 presets to see common comparison scenarios instantly.
When shopping for loans, the advertised interest rate is only part of the picture. The Annual Percentage Rate (APR) includes all fees, points, and charges amortized over the life of the loan. A loan advertising 6.25% might have an APR of 6.52% after accounting for $8,000 in origination fees and points — that 0.27% gap represents thousands of dollars in additional cost.
This calculator computes the true APR for each loan using a binary search algorithm that accounts for all upfront costs. The Hidden Fee Decoder panel breaks down each loan's APR gap, showing you the daily cost of fees and the total lifetime impact of the difference between advertised rate and true APR.
Always compare APR to APR, not rate to rate. A loan with a higher advertised rate but lower fees can cost less overall than a "low rate" loan loaded with points and fees. This is especially true if you plan to sell or refinance within 5-7 years, since the upfront costs haven't had time to amortize.
Mortgage discount points are upfront fees paid to reduce your interest rate. Each point costs 1% of the loan amount and typically reduces the rate by about 0.25%. On a $350,000 loan, one point costs $3,500 and might save $64/month. The break-even point — when cumulative savings equal the upfront cost — is about 55 months (4.6 years) in this example.
The Points Break-Even panel in this calculator shows exact break-even timing and net savings based on your planned ownership period. If you are staying 10+ years, points are usually a strong investment. If selling or refinancing within 3-4 years, skip them — you won't recoup the cost. The sweet spot is typically a 5-7 year holding period where the decision depends on the specific numbers.
Also consider the opportunity cost: the money spent on points could be invested elsewhere. If your expected investment return exceeds the effective return from points, investing the difference may be smarter.
Adjustable Rate Mortgages (ARMs) start with a lower "teaser" rate for a fixed period — 5 years for a 5/1 ARM, 7 years for a 7/1, or 10 years for a 10/1. After this period, the rate adjusts annually based on a market index plus a margin (typically 2.75%). Rate adjustments are capped per year (usually 2%) and over the life of the loan (usually 5% above the initial rate).
The ARM Rate Shock Simulator lets you model what happens when rates adjust. You might save $312/month during the fixed period, but at year 6, your payment could jump $591/month or more. The simulator shows the exact crossover point where the ARM's initial savings are consumed by higher payments.
ARMs make sense when: you are confident you will sell or refinance before the adjustment period, the rate difference is large enough to justify the risk, or you have financial flexibility to absorb payment increases. Fixed rates make sense when: you plan to stay long-term, want payment certainty, or rates are historically low.
Bi-weekly mortgage payments are one of the simplest ways to save money on your loan. Instead of making 12 monthly payments per year, you make 26 half-payments. Since 26 halves equal 13 full payments, you effectively make one extra payment per year — without any noticeable increase in your biweekly cash outflow.
On a $350,000 mortgage at 6.5% for 30 years, switching to bi-weekly payments saves approximately $34,000-$40,000 in interest and pays off the loan 4-5 years early. The savings come from reducing the principal slightly faster, which reduces the interest charged on subsequent payments — a compounding effect.
Not all mortgage servicers offer official bi-weekly programs (some charge fees for this). A free alternative: make one extra principal-only payment per year, or add 1/12th of your monthly payment to each regular payment. The mathematical effect is identical.
Enter each loan's details into the calculator and focus on total cost over the loan's life — not just the monthly payment or advertised rate. Check true APR which includes all fees, review the amortization schedule, and use the comparison matrix to see winners highlighted per metric.
The interest rate is the annual borrowing cost. The APR includes the rate plus all fees, points, and charges spread over the loan term. APR is always equal to or higher than the rate and provides a more accurate picture of total cost. Always compare APR to APR when evaluating offers.
It depends on how long you plan to keep the loan. Calculate the break-even point by dividing the points cost by the monthly savings. If you will stay past break-even, points save money. Typical break-even is 3-5 years. If selling or refinancing sooner, skip points.
Fixed rates provide certainty; ARMs offer lower initial rates but carry adjustment risk. Choose an ARM if you will sell before the fixed period ends. Choose fixed if you are staying long-term or want predictable payments. Use the ARM Rate Shock Simulator to see the worst-case scenario.
Making 26 half-payments per year equals 13 monthly payments instead of 12. This one extra payment per year typically saves $30,000-$40,000 in interest and shortens a 30-year mortgage by 4-5 years, with no change in your biweekly cash flow.
Most lenders want front-end DTI (housing only) under 28% and back-end DTI (all debts) under 36%. FHA allows up to 43%. Lower DTI means more financial flexibility and better loan terms. Use the Affordability Stress Test to see how rate changes affect your DTI.