How this Loan Comparison Mortgage Calculator Works

Enter the loan amount, interest rate, and repayment term (length of loan) for two loans you're considering.

A screen pops up showing the total monthly Principle & Interest (P&I) payment, the total of all payments for the entire loan term, and the total amount of interest you would pay for the entire loan term.

If you want to compare more than two mortgage loans, click "start over."

How Comparing Loans Can Help

Let's say you're trying to decide whether to buy a home with a low down payment and a 30 year repayment term, or if you should make an additional $25,000 down payment and reduce the loan term to 15 years. The first loan amount is $250,000, with an interest rate of 5.50% for a term of 30 years. The second loan amount is $225,000, at a rate of 5.25%, repaid over 15 years. (This is a simplified example, and doesn't include lender charges and other costs).

Your monthly payment for the 30 year loan would be $1419.47; for the 15 year loan, it would be $1808.72. .

Assuming you would take the full 30 year term to pay off the first loan, you would pay a total of $511,010.10 for P&I payments. If you used the entire 15 year term to pay off the second loan, you would pay a total of $325,570.47 in P&I payments.

If you utilized the full repayment term for each loan, you would pay $261,010.10 in interest for the 30 year loan and $100,570.47 for the 15 year loan.This amounts to a potential savings of $160,439.63 if you can afford the higher payments and make an additional down payment of $25,000.

The loan comparison calculator assists in determining how much you can borrow to achieve an affordable payment, or if borrowing more over a longer term can meet your needs. Using different calculator tools can help you get the maximum benefits from refinancing or a new mortgage.

If you're using this calculator now, you're already halfway to getting the best deal - examining the different options available to you, and within your own budgetary constraints. You should also be comparing lenders to find the best deal.

Enter Your Financial Information

Gross Monthly Pay: Your household income before taxes and deductions.

Loan Term: The number of years you'll have to repay your mortgage.

Annual Percentage Rate (APR): Enter the estimated mortgage interest rate.

Local Property Tax Rate: You can obtain this information from the local property tax collector's office or website. Enter the percentage rate (not the dollar amount) in the calculator.

Money Available for Down Payment and Closing Costs: The amount of cash you have to pay toward these expenses.

Other Monthly Obligations: Include recurring installment payments, including credit cards, auto payments, personal and education loans.

Click the "calculate" button, and check the results.

Home Purchase or Refinance: Can You Prequalify?

Home Value / Purchase Price: The maximum amount you prequalify for, based on the information provided.

Total Cash Paid at Closing: The amount you're contributing for closing costs and a down payment.

Cash Applied to Closing Costs: An estimate of closing costs.

Cash Applied to Down Payment: What's left of your cash contribution is used for a down payment.

Monthly Housing Expenses

Mortgage Payment: The amount of the principal and interest payment based on the amount you qualify to borrow and the interest rate you've entered.

Property Taxes: The estimated monthly amount of property taxes. If you're putting less than 20% down, this amount will be added to your mortgage payment.

Mortgage Insurance: A down payment of less than 20% of the purchase price will require mortgage insurance, which will be added to your mortgage payment.

Hazard Insurance: As with taxes and mortgage insurance, this will be added to your mortgage payment if you borrow more than 80% of your home's purchase price.

Total Housing Expense: This amount generally shouldn't exceed 28% of your gross income if you want to prequalify.

Other Monthly Expenses: The amount you entered for other monthly payment obligations.

Total Monthly Expenses: The sum of your total monthly housing payment and other monthly expenses. It generally exceed 36% of your gross monthly income for pre-qualification purposes.

These figures are guidelines. Those with spotless credit, lots of assets, or a very stable job history might qualify for more financing. Conversely, those with credit problems or minimal assets may qualify for less. We recommend that you speak directly with lenders to determine what is right for your situation.