Mortgage Comparison Calculator
Compare different mortgage scenarios side-by-side to find the best option for your needs. Adjust loan terms, interest rates, and down payments to see how they affect your monthly payments and total costs.
Mortgage Comparison
| Metric | Scenario 1 Best | Scenario 2 | Difference (Scenario 1 vs Scenario 2) |
|---|---|---|---|
| Loan Amount | $240,000 | $240,000 | $0 |
| Loan Term | 30 years | 15 years | +15 years |
| Interest Rate | 6.00% | 6.50% | -0.50% |
| Monthly Payment | $0 | $0 | $0 |
| Total Interest | $0 | $0 | $0 |
| Total Cost | $0 | $0 | $0 |
* Difference values show Scenario 1 compared to Scenario 2. Positive values mean Scenario 1 is higher.
- ✓Scenario 1 offers the lowest total cost at $0.
- ℹThe monthly payment difference between Scenario 1 and Scenario 2 is $0 (identical).
- ℹThe total interest paid difference is $0 (identical).
- 💡A 15-year mortgage typically has higher monthly payments but significantly lower total interest compared to a 30-year mortgage.
How to Use the Mortgage Comparison Calculator
Our mortgage comparison calculator allows you to compare up to three different mortgage scenarios side-by-side. Here's how to use it:
- Set up your scenarios: Each scenario represents a different mortgage option. You can adjust the home price, down payment, loan term, and interest rate for each scenario.
- Add or remove scenarios: By default, you'll see two scenarios. You can add a third one or remove existing ones using the buttons provided.
- Compare results: The comparison table shows key metrics like monthly payment, total interest, and total cost for each scenario. The differences between scenarios are highlighted to help you identify the best option.
- Review key insights: The calculator provides key insights based on your scenarios, highlighting important considerations and potential savings.
- Adjust as needed: Feel free to modify your scenarios at any time to explore different options and find the mortgage that best fits your financial situation.
Factors to Consider When Comparing Mortgages
Loan Term
The loan term is the length of time you have to repay the mortgage. Common terms are 15 and 30 years. Shorter terms typically have higher monthly payments but lower total interest costs, while longer terms offer lower monthly payments but higher total interest over the life of the loan.
Interest Rate
Even small differences in interest rates can significantly impact your monthly payment and total interest paid. A lower interest rate can save you thousands of dollars over the life of your loan.
Down Payment
Your down payment affects your loan amount and potentially your interest rate. A down payment of at least 20% typically allows you to avoid private mortgage insurance (PMI), which can add to your monthly costs.
Monthly Payment vs. Total Cost
While a lower monthly payment might seem attractive, it's important to consider the total cost of the loan, including all interest payments. A slightly higher monthly payment might save you significantly in the long run.
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