How the Mortgage Comparison Calculator Works
Comparing mortgage offers isn't as simple as picking the lowest rate. One lender offers 6.5% with no points. Another offers 6.125% with 1 point. A third offers 6.25% with half a point and lower lender fees. Which one actually costs you less?
This calculator runs the full amortization math for each offer and shows you the numbers that matter: monthly payment, total interest over the loan term, and — most importantly — total cost over the number of years you plan to stay in the home. That last number is what determines which offer is actually cheapest for your situation.
What the Calculator Compares
- Monthly payment — principal and interest based on each offer's rate and term
- Total interest — what you'd pay over the full loan term if you never refinanced or moved
- Total cost over your stay — monthly payments plus upfront costs (points and lender fees) over the years you plan to keep the mortgage
- Points break-even — how many months of lower payments it takes to recoup the upfront cost of buying points
Why "Years Staying" Changes Everything
Points buy you a lower rate, but they cost money upfront. If you sell or refinance before you break even, you lose money on the deal. The "years staying" input is what makes this calculator different from a simple payment calculator — it tells you which offer wins for your actual timeline, not a hypothetical 30-year hold.