Compare up to 3 loan offers side by side — monthly payments, total interest, closing costs, and break-even on discount points.
Closing Costs
Closing Costs
Monthly Payment (P&I)
$2,627.72
Monthly Payment (P&I)
$2,528.27
| Metric | Loan A | Loan B |
|---|---|---|
| Loan Amount | $400,000 | $400,000 |
| Interest Rate | 6.875% | 6.5% |
| Term | 30 years | 30 years |
| Monthly P&I | $2,627.72 | $2,528.27 |
| Origination Charges | $1,500 | $1,500 |
| Discount Points | $0 | $4,000 |
| Other Closing Costs | $3,000 | $3,000 |
| Prepaid Items | $2,500 | $2,500 |
| Total Closing Costs | $7,000 | $11,000 |
| Total Interest | $545,977 | $510,178 |
| Total Cost | $952,977 | $921,178 |
The point in time at which paying more upfront (in closing costs / points) becomes cheaper than the lower-cost loan, due to a lower monthly payment.
Loan B breaks even with Loan A after 3 yr 4 mo (month 40). If you keep the loan longer than this, Loan B saves more money.
Closing costs paid on day one, plus principal and interest paid to date. Lines diverge where cost differences compound.
For illustrative/educational purposes only. Figures show principal & interest only — actual costs include taxes, insurance, and other fees. Not financial advice. Consult a qualified mortgage professional.
When you receive Loan Estimates from multiple lenders, comparing them side by side is one of the most impactful steps you can take to save money. The monthly payment is only part of the picture. Two loans with the same interest rate can differ by thousands of dollars due to origination fees, discount points, and other closing costs. This tool helps you see the full cost of each offer over the life of the loan so you can make an apples-to-apples comparison.
Pay close attention to the APR (annual percentage rate), which rolls the interest rate and certain fees into a single number that reflects the true annual cost of borrowing. A loan with a lower interest rate but high upfront fees may actually have a higher APR than a loan with a slightly higher rate and fewer fees. Discount points are an especially important variable: each point typically costs 1% of the loan amount and lowers your rate by about 0.25%. Whether paying points makes sense depends on how long you plan to keep the loan -- the break-even analysis in this tool shows exactly when the upfront cost pays for itself through lower monthly payments.
The CFPB recommends getting quotes from at least three lenders. Research consistently shows that borrowers who compare multiple offers save an average of $1,500 over the life of the loan, and savings can be much larger on jumbo or high-balance loans. Use this tool to enter the numbers from each Loan Estimate and let the math guide your decision.