Compare Mortgage Offers: Fixed-Rate Loan Calculator
Compare two fixed-rate mortgage offers on equal amounts over each full term, counting upfront cash fees and quoted insurance for the months you enter.
What This Calculator Does
See what two loan offers really cost in cash, each over its own full term. Both have to be fixed-rate, fully amortizing and for the same principal. Upfront fees you pay in cash count, and so does a flat monthly mortgage insurance premium for the early payments you specify. Principal and interest show apart from your first payment with insurance. A gap within $1 reads as close here, not as identical offers.
Who Is This For
It's built for borrowers and real estate professionals weighing comparable lender quotes. It works only from the rates, loan terms, mortgage insurance details and upfront cash fees that you type in. It won't show that you're approved or can afford the loan, or which offer wins if you sell or refinance sooner than planned.
How It Works
Start with the loan amount, which stays the same for A and B. For each offer, enter its fixed annual note rate and its term in years. Add the upfront costs you pay in cash. Then comes the monthly mortgage insurance you'd pay, along with how many early payments it covers. No extra monthly premium? Put 0 in both insurance fields, but only once you've confirmed that. Side by side, the results show principal and interest, the opening payment with insurance included, and each loan's total over its full term. Every gap is an A-minus-B figure, signed + or −.
Frequently Asked Questions
What costs go into the comparison, and why can terms differ?
Scheduled principal and interest over each loan's full amortization, the upfront cash fees you entered, and the flat monthly mortgage insurance you pay for the first K payments, while the shared principal counts once. Different terms are on purpose. Nothing here assumes both loans are paid off on the same date, and later payments aren't discounted to present value. Property tax, homeowners insurance and association dues are left out. So are income-tax benefits and any other cost of owning.
Can mortgage insurance flip which loan is cheaper?
Yes. Take a hypothetical $400,000 loan. Loan A is 6.5% for 30 years with no fees, so principal and interest come to about $910,177.95. Loan B is 6.6% for 30 years with no extra mortgage insurance, about $919,668.70. Now add A's quoted $150 premium for the first 96 payments, which adds $14,400, and A's total climbs to about $924,577.95. B is now cheaper by about $4,909.26 before rounding for display. The first payment with insurance is about $2,678.27 for A against $2,554.64 for B. These are sample figures, not market premiums, and that payment count is not a period set by law for cancellation.
Does a lower monthly payment mean you pay less in total over the full term?
No. Say you borrow $400,000. Loan A runs 30 years at 6.5% with $2,000 in cash fees; Loan B runs 15 years at 6% with $4,000 in fees. Neither carries monthly insurance here. A's principal and interest comes to about $2,528.27 a month, B's about $3,375.43. Over the full term, A costs about $912,177.95 against $611,576.92 for B. The smaller payment buys a bigger total. Whether you can carry the higher payment, and what paying later is worth to you, are separate questions.
Which field takes upfront fees and lender-paid insurance?
Upfront covers loan costs you truly pay in cash, each entered once; nothing financed goes here. Paying your mortgage insurance in cash as a lump sum? It goes in this field once, and you shouldn't also invent a monthly premium for it. Third-party charges your quotes tie to the loan belong here as well. Escrow money you'll get back stays out, as does anything you'd be counting twice. When the lender covers the insurance through the rate, enter 0 for your extra premium only after you've confirmed it. Unequal loan amounts, financed fees or credits that don't line up call for a separate, comparable analysis.
What does the number of insurance payments tell me?
It's K, the number of early scheduled payments that carry a fixed monthly premium you pay. When a premium applies, K ranges from 1 to 12 times the number of years in the term. Without an extra premium, set both the amount and the count to 0. The count doesn't apply an appraisal or loan-to-value rule. It doesn't calculate cancellation or promise when insurance ends. Premiums that decline, start later or vary fall outside this simple model. And the first payment with insurance is neither your permanent payment nor your total housing cost.
What does within $1 mean here?
It means the tool won't name a cheaper loan. A or B is flagged lower only when the exact full-term gap is more than $1. A gap of $0.99 reads as close, and so does a gap of exactly $1; at $1.01 it no longer does. The gap still shows with its + or − sign, and A − B carries a plus whenever A is the pricier loan. Even so, a close result isn't proof the loans are identical or exactly equal, that you're approved, or that you clear any universal finance threshold. The $1 test runs before display rounding.
May I use a 0% rate or put 0 for insurance?
Yes, both work, either as plain math or as a what-if quote; neither is a comment on market rates. At 0%, principal and interest add up to the principal alone, so interest is exactly 0. You still pay any cash fees and the insurance you quoted. For example, $120,000 works out to $1,000 monthly across 10 years, or roughly $333.33 over 30 years, and either way you repay $120,000 before fees and insurance. A blank field isn't a confirmed zero, and a zero principal leaves nothing to compare.
How do rounding and left-out features change the result?
The ranking runs on exact figures, not displayed ones. Amounts keep their cents and rates take up to four decimals, and each loan is ranked on its exact payment, interest and full-term cost. Displayed totals and a separately rounded gap can end up a cent apart. Rebuilding the outcome from rounded monthly figures will mislead you. Nor is this a servicer statement. It doesn't compute APR, NPV or break-even. Early payoff, equity and variable rates aren't handled either. Income tax and loan approval are outside it too. Should you sell or refinance ahead of the term's end, or expect a different payment stream, run a separate analysis.