Mortgage Loan Comparison Calculator

Mortgage Loan Comparison Calculator

Which mortgage is right for your home loan needs?

This calculator helps you compare mortgages and determine which home loan is right for you.

 

Asterisk (*) indicates required fields.

TipLoan Amount - Enter the amount you plan to finance. For example, if you are buying a $300,000 home with a 20% down payment, your loan amount would be $240,000.
TipHow many years do you plan to keep this mortgage? - There are up-front costs associated with buying a home. The longer you are in the home, the more time you have to recoup these costs. By providing this information, the calculator can determine which loan allows you to recoup these costs more quickly.
 
Loan 1
Loan 2
TipInterest Rate - Enter the interest rate that you will pay on each loan.
TipTerm of loan - Enter the term you desire for each loan.
TipDiscount Points - Discount points are paid upfront to obtain a lower interest rate. Typically, one point equals 1% of the loan amount and will lower your interest rate by .25 percent.
TipOrigination fees - A fee commonly charged by a lender for processing a loan application. The origination fee may be presented in the form of points or a dollar amount. Each point is equal to 1% of the loan amount (e.g. two points on a $100,000 mortgage would cost $2,000)."
TipClosing costs - Closing costs include appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge, and other costs assessed at settlement. The closing costs usually are about 2% to 6% of the mortgage amount.
ARM Loan Adjustments
Loan 1
Loan 2
TipIs this an adjustable-rate mortgage? - Select if one of the loans you are comparing is an adjustable rate mortgage.
TipLength of initial rate term - The number of months until your first rate adjustment. For example, on a 5/1 hybrid ARM with a 30-year amortization period, your first rate adjustment will take place after five years (or 60 months). You would therefore choose "60."
TipIndex - An interest rate based on the returns of investments such as U.S. Treasury securities. To determine rates for adjustable rate mortgages, lenders start with a particular index rate and then add a margin to get the final rate. As the index changes, so does the rate on your ARM. If you don't know your index, ask your lender.
TipMargin - The amount a lender adds to an index rate to establish the interest rate on an adjustable rate mortgage. The index and the margin added together will equal the rate you pay. You can find average margins on www.freddiemac.com, or you can ask your lender what your margin is.
TipExpected amount of index adjustment - Estimate how much you think your interest rate will increase or decrease at your first adjustment period. Make sure you use a negative sign in front of the value for a decrease in the rate. For example, if you think after your initial period that interest rates will fall .5 percent, enter "-.5."
TipLifetime interest rate cap - This is the highest interest rate possible under an adjustable rate mortgage. Also called an "interest rate ceiling," it's calculated by adding the number of percentage points your rate can increase to your initial interest rate. Input the sum of these values here.
Monthly payment amount is principal and interest only. It does not include taxes, homeowners insurance, or private mortgage insurance. If you are comparing an adjustable rate mortgage, this calculator allows you to estimate the change in your monthly payment for your first adjustment period only, as it can be difficult to accurately predict interest rates further out.

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