Compare Two Mortgages

Why Compare Mortgages?

Choosing a mortgage is one of the biggest financial decisions you'll make, and the difference between two scenarios can be tens of thousands of dollars over the life of the loan. By comparing side by side, you can see exactly how each variable — loan amount, interest rate, term length, and down payment — affects your monthly budget and total cost. Even a small change, like a 0.25% lower rate or a 5% larger down payment, can save you significantly over 15 or 30 years.

Consider comparing different scenarios when you're deciding between lenders, weighing a 15-year against a 30-year term, evaluating whether a larger down payment is worth depleting savings, or choosing between a fixed-rate and an adjustable-rate mortgage.

How to Use This Calculator

1. Enter the details for your first mortgage scenario (home price, down payment, rate, and term).
2. Enter the details for the second scenario you want to compare against.
3. Click Calculate to see monthly payments, total interest, and total cost side by side.
4. Adjust individual variables to see how each change impacts the overall picture.

The results show your monthly payment breakdown, total interest paid over the life of each loan, and the total cost of each scenario. Use these numbers to decide which option best fits your financial goals — whether that's minimizing monthly payments, reducing total interest, or paying off the loan as fast as possible.

Common Mortgage Comparisons

Here are the most common scenarios borrowers compare:

• 15-year vs 30-year term: A 15-year mortgage has higher monthly payments but saves dramatically on interest. On a $300,000 loan at 6.5%, a 15-year term saves over $150,000 in interest compared to 30 years.
• Fixed-rate vs ARM: A fixed-rate mortgage keeps the same payment for the life of the loan. An ARM starts lower but can adjust upward after the fixed period ends.
• Different down payments: Putting 20% down eliminates PMI and reduces your loan amount, but it may not always be the best use of cash if other investments earn higher returns.
• Rate shopping: Comparing quotes from multiple lenders can reveal meaningful differences. Even 0.125% in rate variation can save thousands over the loan term.

Frequently Asked Questions

Should I choose the mortgage with the lowest monthly payment? Not always. A lower monthly payment often means a longer term or higher rate, which increases total interest paid. Consider both your monthly budget and the total cost over the life of the loan.

How much does a 0.5% rate difference matter? On a $400,000 30-year mortgage, the difference between 6.0% and 6.5% is about $130 per month — roughly $47,000 in total interest over the life of the loan.

Is it worth refinancing to a shorter term? If you can afford the higher monthly payment and plan to stay in the home long enough to recoup closing costs (typically 2-3 years), refinancing from a 30-year to a 15-year mortgage can save substantial interest.

Related Calculators

• Mortgage Calculator — Standard payment calculator with PITI breakdown
• Affordability Calculator — Find out how much house you can afford
• Refinance Calculator — Compare your current loan to a new one
• Mortgage Payoff Calculator — See when you'll be debt-free