Interest Rate
Lower rates mean less total interest
Loan Term
Shorter terms = less interest, higher payments
Total Cost
Consider fees and total interest paid
M = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1]
M = Monthly payment
P = Principal (loan amount)
r = Monthly interest rate
n = Total number of payments
Even a small difference in interest rates can result in significant savings over the life of a loan. For example, on a $200,000 mortgage, a 0.5% rate difference could save you over $20,000 in interest over 30 years. This calculator helps you compare multiple loan options side by side to identify the most cost-effective choice.
- Improve your credit score before applying
- Shop around and get quotes from multiple lenders
- Consider shorter loan terms for lower rates
- Make a larger down payment if possible
- Look into points to buy down your rate
Interest rate comparisons are estimates based on entered values. Actual costs may vary based on fees, points, closing costs, and other factors not included in this calculation. Always review the complete loan terms and consult a financial advisor before making lending decisions.