Mortgage Comparison Calculator
Comparing mortgage offers requires looking beyond the interest rate. A lower rate with higher fees can cost more than a slightly higher rate with lower fees — depending on how long you keep the loan. This calculator shows the true cost of each offer at your planned holding period.
Enter your loan amount, then details for two loan offers to see monthly payments, total costs, APR, and which loan wins at your holding period. Weighing a 15-year against a 30-year? Give the loans different terms, or load the example below.
| Metric | Loan A | Loan B | Difference |
|---|
How to Actually Compare Mortgage Offers
The interest rate is the starting point, not the end point. Two lenders quoting 6.5% may have very different origination fees, discount points, and lender credits. The only apples-to-apples comparison is total cost over your planned holding period — not just the monthly payment or the rate alone.
Rate vs. Fees: The Core Tradeoff
Lenders constantly trade off between rate and fees. A lower rate typically comes with higher upfront fees (origination charges, discount points). A higher rate may come with a lender credit that reduces or eliminates closing costs. The right choice depends on how long you plan to keep the loan. If you refinance or sell in 3 years, the low-rate/high-fee option rarely makes sense. If you keep the loan for 15 years, a lower rate with $5,000 in fees could save $30,000 in total interest.
| Scenario | Rate | Fees | Monthly | Better if hold… |
|---|---|---|---|---|
| Low rate, high fees | 6.375% | $8,000 | $1,996 | 7+ years |
| Mid rate, mid fees | 6.625% | $4,000 | $2,050 | 4–7 years |
| High rate, no fees | 6.875% | $0 | $2,101 | Under 3 years |
15-Year vs. 30-Year: Same Loan, Different Term
The most common comparison isn't between lenders at all — it is between terms. A 15-year mortgage usually carries a rate 0.5–0.75 points lower than a 30-year, and it charges that rate for half as long, so total interest falls dramatically. The price is a much higher monthly payment. Load the example above (or enter 30 and 15 in the two Term fields) to see both loans side by side.
| Metric | 30-Year | 15-Year |
|---|---|---|
| Monthly payment (P&I) | $2,661 | $3,484 |
| Total interest | $558,000 | $227,000 |
| Balance left after 10 years | $343,000 | $178,000 |
| Interest saved by the 15-year | — | $331,000 |
The 15-year costs $823 a month more — nearly $9,900 a year — which is the real question: whether that payment fits comfortably without crowding out an emergency fund or retirement saving. A middle path is to take the 30-year and voluntarily pay the 15-year amount. In this example, paying $3,484 a month on the 30-year at 7.0% clears it in about 16 years with roughly $264,000 of interest — about $36,000 more than the true 15-year, but you can drop back to the $2,661 minimum if money gets tight. A shorter term is especially valuable if you want the mortgage gone before you retire: a payment that disappears at retirement is income your savings no longer have to produce.
APR: The Standardized Comparison
APR (Annual Percentage Rate) converts both the rate and fees into a single standardized percentage, allowing direct comparison across different fee structures. The APR is always ≥ the interest rate. A loan with 6.5% rate and $8,000 in fees on a $320,000 loan has an APR of about 6.75%. A loan with 6.875% rate and $0 fees has an APR of 6.875%. On a 30-year hold, the first loan is slightly better. On a 5-year hold, the second loan is better because you never recoup the upfront fee savings.
For the full closing cost breakdown of each offer, use the Closing Costs Calculator. For the decision of whether to buy points specifically, the Mortgage Points Calculator shows the exact breakeven for any points scenario. For more context on comparing offers, read our guide on how to compare mortgage offers.
Frequently Asked Questions
What is APR vs. interest rate on a mortgage?
The interest rate is the cost to borrow principal, expressed annually. APR is broader — it includes the rate plus fees (origination, points, mortgage insurance) expressed as an annual percentage. For comparing offers with different fee structures, APR is more useful. A lower interest rate with high origination fees can have a higher APR than a slightly higher rate with no fees.
When is a lower interest rate with points worth it?
When the monthly savings recoup the upfront fee cost before you sell or refinance. Breakeven = Upfront Cost ÷ Monthly Savings. Paying $4,000 for a rate that saves $80/month breaks even at 50 months (4.2 years). If you'll keep the loan 5+ years, buying points wins. Under 4 years, the higher rate with lower fees is typically better.
Should I choose a 15-year or 30-year mortgage?
15-year offers a lower rate and dramatically less total interest but ~40% higher monthly payment. On a $320K loan, 15yr at 6.2% costs ~$2,730/mo vs. $2,085/mo for 30yr at 6.8%. Total interest: ~$171K vs. ~$431K. The 15-year saves $260K but requires $7,740/yr more. If you can afford it and plan to stay long-term, the 15-year often wins on total cost.
What if I take a 30-year mortgage but pay the 15-year amount?
You get close to a 15-year payoff while keeping the lower 30-year minimum as a safety valve. On $400,000, paying the 15-year payment of $3,484 on a 30-year loan at 7.0% pays it off in about 16 years with roughly $264,000 of interest, versus $227,000 on a true 15-year at 6.5%. The extra cost is the higher 30-year rate; the benefit is flexibility if your income varies.
How do I compare Loan Estimates from different lenders?
Focus on Section A (Origination Charges) — this is the most negotiable and where lenders differ most. Compare APR, not just rate. Look at total closing costs on page 2. Never compare just the monthly payment. Use a calculator with your expected holding period to see total cost of each loan — including upfront fees amortized over how long you'll actually keep it.
What is a no-closing-cost mortgage?
Closing costs rolled into a higher interest rate (lender-paid) or added to the loan balance. You need less cash at closing, but the monthly payment is higher. The math: if the extra monthly cost from the higher rate exceeds the closing costs you saved within your holding period, you'd have been better off paying closing costs upfront. Typically makes sense if you plan to sell or refinance within 3–5 years.
Related Calculators
Sources & method
This calculator implements the standard amortization formula, with the cost components the CFPB documents for US mortgages.
Source: CFPB — Buying a house (verified 4 September 2026)
APR is found the way Regulation Z describes it: the rate at which the loan's payments equal the amount financed (loan amount minus upfront fees). Total cost at your holding period = upfront fees + interest paid over that period; the balance still owed is shown separately because it is equity, not cost.
Not financial or tax advice. This is an educational estimator. It does not know your full situation, and tax rules change. Akshaya Panda, who builds and verifies these tools, is an engineer — not a financial adviser, accountant, or tax professional. Before acting on a result that matters, check it with someone licensed to advise you.