Mortgage Comparison — Which Loan Offer Is Better?
Compare two mortgage offers side by side. See total cost difference monthly payment difference and which loan saves you more over the full term.
When shopping for a mortgage comparing offers from different lenders can save you tens of thousands of dollars. A 0.25% rate difference on a $400000 mortgage saves $20000-$25000 over 30 years. But rates are not the only factor: closing costs points origination fees and PMI requirements all affect the true cost. Our calculator compares the total cost of two offers so you can make the right choice.
Calculate Now
Mortgage Calculator
Key Information
| Parameter | Details |
|---|---|
| Rate Comparison Impact | 0.25% saves $20000-$25000 on $400K |
| Closing Costs Range | $3000 - $10000 |
| Points | 1 point = 1% of loan (reduces rate ~0.25%) |
| APR vs Rate | APR includes fees for true cost comparison |
Compare mortgage offers
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
How to compare two mortgage offers?
Look beyond the interest rate. Compare: APR (includes all fees) total closing costs monthly payment total interest over the loan life and any PMI requirements. A loan at 6.75% with $3000 closing costs may be cheaper than 6.50% with $8000 in closing costs and points. Calculate the break-even point: $5000 extra costs / $50 monthly savings = 100 months (8.3 years) to recoup.
Should I pay points to lower my rate?
Points (prepaid interest) cost 1% of the loan amount and typically reduce your rate by 0.25%. On a $400000 loan: 1 point costs $4000 and saves approximately $60/month. Break-even: $4000 / $60 = 67 months (5.6 years). If you plan to stay in the home more than 6 years points are usually worth it. If you might sell or refinance within 5 years skip the points.
Fixed vs adjustable rate mortgage?
Fixed rate: payment certainty for the full term. Currently higher than adjustable rates. Best if you plan to stay 7+ years. Adjustable rate (ARM): lower initial rate for 5-7 years then adjusts with market. 5/1 ARM might offer 0.5-1% lower rate initially. Best if you plan to sell or refinance within the fixed period. The initial savings can be significant: 0.75% lower on $400000 = $250/month for the first 5 years.
Related Calculators
Last updated: March 2026