How this calculator works
Each offer gets its own amortization schedule. Lifetime cost is total interest plus fees and points. When one loan has higher fees but a lower payment, the fee difference divided by the payment difference shows how many months it takes to come out ahead.
Worked example
With the example values below: Loan B costs less overall, $26,316 (difference in interest plus fees). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Loan A | |
| Loan amount | $350,000 |
| Rate | 6.5% |
| Term | 30 years |
| Fees & points | $3,000 |
| Loan B | |
| Loan amount | $350,000 |
| Rate | 6.125% |
| Term | 30 years |
| Fees & points | $7,500 |
Compare offers on the same basis
Mortgage offers can look similar on rate and still cost very different amounts. To compare them fairly, request Loan Estimates on the same day, for the same loan amount, term and lock period. The Loan Estimate is a standard three-page form, so you can line up the same boxes on each one.
Look at the rate, the APR, the total of origination charges and points in section A, and the cash to close. The APR folds most lender fees into a yearly rate, but it assumes you keep the loan for its full term, which few people do.
Rate vs. fees: finding the break-even
A lower rate often comes with higher fees or points. If Loan B costs $4,500 more upfront but saves $85 a month, it takes about 53 months to come out ahead. Keep the loan longer than that and Loan B wins; sell or refinance sooner and Loan A wins.
The calculator shows each loan's payment, total interest and lifetime cost, and works out the months to recoup any extra fees.
What else to compare
- Loan type: fixed versus adjustable, and how an ARM's rate can change after the fixed period.
- Mortgage insurance: conventional PMI versus FHA MIP can change the true monthly cost.
- Rate lock: length, cost and whether there's a float-down option if rates fall.
- Prepayment penalties: rare on standard mortgages, but check.
- Lender service: responsiveness and closing track record matter in a competitive market.
Using your comparison to negotiate
Lenders often match or beat a competing Loan Estimate, especially on origination fees. Share the lowest offer with your preferred lender and ask whether they can improve it. When you're weighing whether to pay for a lower rate, the mortgage points calculator gives the same break-even view for a single loan.
Frequently asked questions
How do I compare two mortgage offers?
Get Loan Estimates for the same amount and term on the same day. Compare the rate, APR, origination charges and points, and cash to close, then work out how long it takes a lower rate to repay any higher fees.
Is the APR the best way to compare mortgages?
It's a useful starting point because it includes most lender fees, but it assumes you keep the loan for its full term. If you'll likely move or refinance in a few years, a lower-fee loan may be cheaper even with a higher APR.
How many lenders should I get quotes from?
At least three. Studies by the CFPB and Freddie Mac have found that borrowers who compare several offers often save thousands over the life of the loan.
Does shopping for a mortgage hurt my credit?
Very little. Credit scoring models treat multiple mortgage inquiries within a short window, typically 14 to 45 days, as a single inquiry.
What is a Loan Estimate?
A standard three-page form lenders must give you within three business days of applying. It shows the rate, payment, closing costs and key loan features, in the same format for every lender.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.