Mortgage comparison: which wins?
Type the home price and down payment, then the rate, term, points and fees of two mortgage offers. The mortgage comparison calculator shows each monthly principal and interest, what each costs over the years you keep it, each APR, and which offer costs less.
- The cheaper mortgage saves
- $24,975.02
Mortgage B costs $24,975.02 less over 360 months: $408,142.36 for mortgage A against $383,167.34 for mortgage B.
- Cheaper mortgage
- Mortgage B
- Loan amount
- $320,000.00
- Mortgage A monthly payment
- $2,022.62
- Mortgage B monthly payment
- $1,944.35
- Mortgage A cost
- $408,142.36
- Mortgage B cost
- $383,167.34
- Mortgage A points
- $0.00
- Mortgage B points
- $3,200.00
- Mortgage A interest
- $408,142.36
- Mortgage B interest
- $379,967.34
- Mortgage A APR
- 6.5%
- Mortgage B APR
- 6.22%
- Mortgage A balance left
- $0.00
- Mortgage B balance left
- $0.00
- Months compared
- 360
The cheaper mortgage saves: $24,975.02. Mortgage B costs $24,975.02 less over 360 months: $408,142.36 for mortgage A against $383,167.34 for mortgage B.
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Compares two mortgage offers on the same home: the monthly principal and interest, points, fees and interest over the years you keep the loan, the APR, and which one costs less.
Example with the default inputs (Home price $400,000.00, Down payment $80,000.00, Mortgage A rate 6.5%, Mortgage A term (years) 30, Mortgage A points 0, Mortgage A lender fees $0.00, Mortgage B rate 6.125%, Mortgage B term (years) 30, Mortgage B points 1, Mortgage B lender fees $0.00): Mortgage B costs $24,975.02 less over 360 months: $408,142.36 for mortgage A against $383,167.34 for mortgage B.
Method: Loan L = price − down; for each mortgage: payment = L × r ÷ (1 − (1 + r)^−n), r = rate ÷ 1200, n = years × 12; cost = points × L ÷ 100 + fees + interest paid in the months kept; APR = 1200 × j where the payments at monthly rate j are worth L − points − fees.
- Both mortgages are for the same loan, at a fixed rate, with monthly payments at the end of each month.
- Points and fees are paid in cash at closing; they are not added to the loan.
- The payment is principal and interest only: no property tax, insurance or mortgage insurance.
- The cost over the years kept counts points, fees and interest, not the principal you repay. Type the rates you are offered; no live rates.
Worked examples
Each example is checked against the calculator on every build.
- Home price $400,000.00, Down payment $80,000.00, Mortgage A rate 6.5%, Mortgage A term (years) 30, Mortgage A points $0.00, Mortgage A lender fees $0.00, Mortgage B rate 6.125%, Mortgage B term (years) 30, Mortgage B points $1.00, Mortgage B lender fees $0.00 gives Loan amount $320,000.00, Mortgage A monthly payment $2,022.62, Mortgage B monthly payment $1,944.35, Mortgage B points $3,200.00, Mortgage A cost $408,142.36, Mortgage B cost $383,167.34, Mortgage B APR 6.219702%, Cheaper mortgage Mortgage B.Source: Consumer Financial Protection Bureau, What are (discount) points and lender credits and how do they work? https://www.consumerfinance.gov/ask-cfpb/what-are-discount-points-and-lender-credits-and-how-do-they-work-en-136/ (retrieved 2026-10-05); Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026, Appendix J: annual percentage rate computations for closed-end credit transactions (actuarial method), https://www.consumerfinance.gov/rules-policy/regulations/1026/j/ (retrieved 2026-10-05)
- Home price $400,000.00, Down payment $80,000.00, Mortgage A rate 6.5%, Mortgage A term (years) 30, Mortgage A points $0.00, Mortgage A lender fees $0.00, Mortgage B rate 6.125%, Mortgage B term (years) 30, Mortgage B points $1.00, Mortgage B lender fees $0.00, Years you keep the mortgage 3 gives Mortgage A cost $61,349.41, Mortgage B cost $60,939.50, Mortgage A balance left $308,535.17, Months compared 36.Source: Consumer Financial Protection Bureau, What are (discount) points and lender credits and how do they work? https://www.consumerfinance.gov/ask-cfpb/what-are-discount-points-and-lender-credits-and-how-do-they-work-en-136/ (retrieved 2026-10-05)
- Home price $300,000.00, Down payment $60,000.00, Mortgage A rate 6%, Mortgage A term (years) 15, Mortgage A points $0.00, Mortgage A lender fees $1,500.00, Mortgage B rate 6.75%, Mortgage B term (years) 30, Mortgage B points $0.00, Mortgage B lender fees $1,500.00 gives Mortgage A monthly payment $2,025.26, Mortgage B monthly payment $1,556.64, Mortgage A cost $126,046.15, Mortgage B cost $321,888.76, Mortgage A APR 6.098066%, Mortgage B APR 6.811289%.Source: Consumer Financial Protection Bureau, Regulation Z, 12 CFR 1026, Appendix J: annual percentage rate computations for closed-end credit transactions (actuarial method), https://www.consumerfinance.gov/rules-policy/regulations/1026/j/ (retrieved 2026-10-05)
How it works
The loan L = home price − down payment, in exact decimals. For each mortgage, with a yearly rate R%, a term of Y whole years, P points and lender fees F:
- Points = P × L ÷ 100, in exact decimals. Up-front cost U = points + F.
- Months n = Y × 12. Monthly rate r = R ÷ 1200. Monthly payment (principal and interest) M = L × r ÷ (1 − (1 + r)^−n), or L ÷ n at 0%.
- Months kept k = the years you keep the mortgage × 12, rounded to the nearest whole month (a half month up), but no more than n. Left empty, k = n.
- Balance left after k payments = L × (1 + r)^k − M × ((1 + r)^k − 1) ÷ r (0 when k = n).
- Interest over the months kept = M × k − (L − balance left); for the full term, M × n − L; at 0%, 0.
- Cost = U + interest over the months kept.
- APR = 1200 × j, where M × (1 − (1 + j)^−n) ÷ j = L − U (Regulation Z, Appendix J). With no points or fees the APR is the rate.
- The cheaper mortgage saves = |cost A − cost B|; within half a cent they cost the same. Months compared = the larger months kept.
Rules
- Price $1,000 to $100,000,000; the down payment must be less than the price. Rates 0% to 30%; terms 1 to 40 whole years; points 0 to 10; the up-front cost must be less than the loan; years kept 0.1 to 40.
Worked examples by hand
The default: $400,000 home, $80,000 down, mortgage A at 6.5% with no points, mortgage B at 6.125% with 1 point, both 30 years. L = $320,000. A: M = $2,022.62, interest over 30 years 2,022.62 × 360 − 320,000 = $408,142.36. B: points $3,200, M = $1,944.35, interest $379,967.34, cost $383,167.34; APR 6.220%. B saves $24,975.02.
The same offers kept 3 years. A: interest $61,349.41 (balance left $308,535.17). B: interest $57,739.50 + $3,200 points = $60,939.50. B saves $409.91; the point has just paid for itself.
15 against 30 years on $240,000 with $1,500 fees each. A at 6% for 15 years: M = $2,025.26, cost $126,046.15, APR 6.098%. B at 6.75% for 30 years: M = $1,556.64, cost $321,888.76, APR 6.811%.
Other questions people ask
How do I compare two mortgage offers?
Compare what each costs over the years you expect to keep the loan: points, lender fees and the interest you pay in that time. The CFPB suggests comparing Loan Estimates from several lenders.
Are points worth paying?
Points lower the rate in exchange for cash at closing. They pay off only if you keep the loan long enough. On a $320,000 loan, 1 point ($3,200) for 6.125% instead of 6.5% saves about $78 a month, so it pays for itself in about 3 years.
Is a 15-year mortgage cheaper than a 30-year one?
It costs far less interest but has a higher payment. On $240,000, 6% over 15 years is $2,025.26 a month with $124,546 of interest; 6.75% over 30 years is $1,556.64 with $320,389.
Why is the APR higher than the rate?
The APR counts points and fees as well as interest: it is the yearly rate at which the payments repay the loan minus those costs (Regulation Z, actuarial method).
Does the payment include taxes and insurance?
No. It is principal and interest only. Property tax, homeowners insurance and mortgage insurance are the same or close for both offers on the same home; add them to see your full payment.
Does the calculator use today’s mortgage rates?
No. Type the rates from your Loan Estimates; the site shows no live rates.