Key takeaways
- Compare total cost, not just the monthly payment.
- Points and fees matter more if you refinance early.
- Shorter terms usually carry lower rates.
How the loan comparison calculator works
We calculate each loan's payment and total interest with the standard amortization formula, then add up-front fees (origination, points) to get the true total cost of borrowing.
Formula
Standard formula. Further reading: CFPB – Buying a house · Investopedia – Amortization
Worked example
$200,000 at 6% for 30 years costs $1,199.10/month; at 5.5% for 15 years it costs $1,634.17/month but saves about $137,000 in interest.
Change any number above and the plain-English explanation updates instantly with your own figures.
Frequently asked questions
Are points worth paying?
Paying points lowers your rate. They pay off if you keep the loan longer than the break-even time (fees ÷ monthly savings).
Should I compare APR or rate?
APR includes fees and is the better quick comparison; this calculator shows both payment and total cost.
Why does a shorter term cost less?
You pay interest for fewer years and shorter terms usually come with lower rates.
Does this assume I keep the loan to the end?
Yes. If you plan to refinance or sell early, up-front fees matter more.
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Results are estimates for educational purposes and are not financial advice.