Mortgage Comparison Calculator

By Tibor Pal, PhD candidate
Last updated: Sep 07, 2021

If you even wondered how to decide which mortgage is better, our mortgage comparison calculator is here to help you solve such a problem and choose the best deal. It is always beneficial to shop around for different options when you are about to take a home loan.

For example, you can check which is better: a 30 or 15 year mortgage? Accordingly, by using this mortgage loan comparison calculator you can contrast two house loans with a summary table and a chart where you can follow the progressions of interest and principal balances. In addition, you can check the payment schedule of the given mortgages.

Read on, as we introduce this mortgage comparison tool and answer to some practical questions regarding this topic.

If you consider refinancing your mortgage loan, check our mortgage refinance calculator.

How to compare mortgage deals?

There are three crucial factors you need to take into account when comparing mortgage deals:

  • Annual Percentage Rate (APR) - Since APR incorporates all costs of the loan besides the interest in a percentage form, it is an excellent way to compare the cost of mortgages.
  • Payment - The money you need to devote to your monthly mortgage payment is crucial as it can affect your budgets significantly.
  • Term - The number of years of payment obligation is also essential. Note, that the later you pay off the mortgage, the longer the amortization term, which implies higher interest charges.

The mortgage comparison calculator. Which mortgage is better?

To run the mortgage comparison calculator, you need to specify the following parameters for two mortgage loans:

1. Specifications

  • Loan amount - To check which mortgage is better, enter either the remaining balance or, in the case of a new loan, give the original loan value.
  • Payment frequency - Here, you can switch from a monthly schedule to an accelerated weekly or accelerated bi-weekly mortgage payments.
  • Mortgage term - The remaining or original loan term.
  • Interest rate - Yearly rate of interest or APR.
  • Mortgage points - Upfront payment as a percentage of the loan amount.
  • Upfront fee - Additional upfront payment.
  • Compounding frequency - Available in the advanced mode of the mortgage comparison calculator.
  • Due date - The closest date when the monthly payment is due. Also available in the advanced mode.

2. Payment summary

After setting all parameters, you will immediately see the results in a summary table where you can read and compare the results for the two mortgages and decide easily which mortgage is better. Since you can check and compare the APRs of the loans, you can use the tool as a mortgage rate comparison calculator as well.

3. Balances and schedules

You can also follow the progression of the mortgage balances in a dynamic chart and amortization table with extra payments. This will allow you to check which mortgage is better. Select the presentation of the results you like the most and our mortgage loan comparison calculator will estimate everything in no time.

Mortgage comparison tool disclaimer

You should consider the mortgage loan comparison calculator as a model for financial approximation. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are, despite our best effort, not exhaustive.

For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracy, we are always pleased to receive useful feedback and advice.

FAQ

Which is better 30 or 15 year mortgage?

Since a 15-year mortgage has a shorter amortization term, its overall interest cost is lower than a mortgage with a 30 years term, all other things being equal. However, its monthly payment is considerably higher, so it depends on your monthly budget which one is better for you.

One way to check it is to use a mortgage comparison tool available online.

How to choose a mortgage lender?

Before you choose a mortgage lender, take your time and shop around the mortgage market. To choose the most favorable, you need to be familiar with your financial possibilities as well. Finally, use any mortgage rate comparison calculator to check the main characteristics of the selected loans.

How to find the best mortgage rate?

To get the best rates, you need a very good or an exceptional credit score. Therefore, it is always advisable to improve your credit score before applying for a mortgage.

How much upfront fee is one mortgage percent of a $100,000 mortgage?

The one percent upfront fee of a $100,000 mortgage is $1,000.

Upfront fee is the percentage of the loan amount that you might need to pay when you apply for a mortgage. Note, that an additional upfront payment of another amount may be also needed.

Tibor Pal, PhD candidate
Mortgage #1
Loan amount
$
Payment frequency
Accelerated weekly
Mortgage term
yrs
Interest rate
%
Mortgage points
%
Upfront fee
$
Mortgage #2
Loan amount
$
Payment frequency
Monthly
Mortgage term
yrs
Interest rate
%
Mortgage points
%
Upfront fee
$
Comparison summary
Mortgage #1Mortgage #2Difference
Principal$300,000.00$300,000.00$0.00
APR6.847%7.652%0.805%
Payment$851.61 weekly$3,561.05 monthly-$129.26 per month
Term9 years10 years1 year
Upfront expenses$4,000.00$2,000.00-$2,000.00
Total interest$95,394.83$127,326.37$31,931.54
Total payments$399,394.83$429,326.37$29,931.54
Display
Chart of balances
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