Mortgage Comparison Calculator

Category: Mortgage and Real Estate
- April 23, 2025
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Compare different mortgage options side by side to help determine which loan best fits your needs. This calculator shows monthly payments, total interest, and other key metrics for up to three different mortgage scenarios.

Property Details

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$
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Mortgage 1
Mortgage 2
Mortgage 3
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years
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$
points
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years
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$
points
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years
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years
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points

Additional Options

Understanding Mortgage Options

When choosing a mortgage, it's important to understand how different options impact your monthly payment and total cost over the life of the loan. Here are some key considerations:

Fixed-Rate vs. Adjustable-Rate Mortgages (ARMs)
  • Fixed-Rate: Interest rate remains constant for the entire loan term. Provides payment stability and predictability.
  • Adjustable-Rate: Interest rate is fixed for an initial period, then adjusts periodically based on market indexes. ARMs typically offer lower initial rates but carry the risk of rate increases later.
Loan Term Considerations
  • 30-Year Loans: Lower monthly payments but significantly more interest paid over the life of the loan.
  • 15-Year Loans: Higher monthly payments but substantial interest savings and faster equity building.
  • Other Terms: 10, 20, or 25-year terms offer different balances between monthly payment amount and total interest paid.
Other Mortgage Cost Factors
  • Private Mortgage Insurance (PMI): Required when down payment is less than 20%. Can add significantly to monthly payments.
  • Property Taxes & Insurance: Often included in monthly mortgage payments through an escrow account.
  • Points: Upfront fees paid to lower the interest rate (1 point = 1% of loan amount).
  • Closing Costs: Various fees for loan processing, appraisals, title insurance, etc.
Monthly Mortgage Payment Formula:
\( M = P \cdot \frac{r(1 + r)^n}{(1 + r)^n - 1} \)
Where:
  • M = monthly mortgage payment
  • P = loan amount (principal)
  • r = monthly interest rate (annual rate ÷ 12)
  • n = total number of payments (loan term in years × 12)

What is the Mortgage Comparison Calculator?

The Mortgage Comparison Calculator is a helpful mortgage payment tool that lets you compare up to three different mortgage scenarios side by side. It provides an in-depth look at monthly mortgage costs, total interest paid, and the complete loan amortization over time.

Whether you're a first-time buyer or exploring home financing options, this calculator offers clear insights into how different loan terms, interest rates, and fees affect your total costs. It supports both fixed-rate and adjustable-rate mortgages (ARMs), helping you make an informed choice.

How to Use the Calculator

To use the Mortgage Comparison Calculator effectively, follow these steps:

  • Enter the home price and your expected down payment.
  • Adjust property tax, insurance, and HOA fees to reflect your location.
  • For each loan option (Mortgage 1, 2, 3):
    • Set the loan term, interest rate, and PMI rate.
    • Select the loan type — fixed or adjustable — and input any ARM-specific details.
  • Click “Compare Mortgages” to view the results.

You’ll see a breakdown of monthly payments, principal and interest split, total costs, and a detailed amortization schedule. You can toggle views to explore monthly payment details, a loan payoff schedule, and even switch between yearly and monthly views.

Why Use a Mortgage Comparison Calculator?

This tool helps you understand your options by answering key questions like:

  • How much will I pay per month with each mortgage?
  • What’s the total cost of ownership over the life of the loan?
  • What’s my monthly mortgage interest breakdown?
  • Will a shorter term save me interest?

It acts as a home financing planner by visualizing differences in mortgage cost estimates. This makes it easier to compare rates, terms, and upfront costs like points and closing fees.

Common Questions (FAQ)

What is PMI?

PMI stands for Private Mortgage Insurance. It's usually required if your down payment is less than 20% of the home's value. This tool includes PMI in your calculations if applicable.

What’s the difference between fixed and adjustable-rate loans?

  • Fixed-rate loans have the same interest rate for the entire loan term. Monthly payments remain constant.
  • Adjustable-rate loans (ARMs) start with a lower interest rate that changes after an initial period. This may reduce early payments but increase future costs.

What does the amortization schedule show?

It shows how each monthly payment is split between principal and interest. Over time, you’ll pay more toward the loan balance and less in interest.

Does this calculator include taxes and insurance?

Yes. You can include annual property tax and home insurance costs to get a full view of your monthly mortgage breakdown.

What happens if I make extra payments?

Extra payments are not currently calculated, but using a separate mortgage overpayment tool can help estimate savings from paying off your mortgage faster.

Who Is This Calculator For?

This is ideal for:

  • Anyone planning to buy a home and comparing home loan estimates.
  • Homeowners considering refinancing using a refinance savings tool.
  • Buyers weighing fixed vs ARM options with a mortgage comparison tool.
  • Anyone who wants a clear, visual view of their loan repayment timeline.

Get the Most Out of Your Mortgage

Making the right decision on your home loan can save you tens of thousands of dollars. This calculator provides the home financing insights you need to move forward with confidence.

Use it as your go-to monthly mortgage planner or a house financing guide to help you decide which loan works best for your budget and future plans.