Discover the better option between loans.

In addition to the calculated monthly payments, annual percentage rate (APR) offers a good apples-to-apples comparison between loans. APR takes into account the varying discount points, closing costs and fees that are typically added into the loan amount and financed over the term of the loan. If the fees are paid "out-of-pocket" then the APR will be the same as the stated interest rate. Use this calculator to help determine the best loan option for you.

Loan Assumptions

Item	Loan 1	Loan 2	Loan 3
Original loan amount	$
Term
Annual interest rate	%
Original loan amount		$
Term
Annual interest rate		%
Original loan amount			$
Term
Annual interest rate			%

Traditional Closing Costs

Advanced options 15

Item	Loan 1	Loan 2	Loan 3
Discount points	$
Origination fee	$
Lender fees (processing/underwriting)	$
Title insurance	$
Other fees and costs	$
Discount points		$
Origination fee		$
Lender fees (processing/underwriting)		$
Title insurance		$
Other fees and costs		$
Discount points			$
Origination fee			$
Lender fees (processing/underwriting)			$
Title insurance			$
Other fees and costs			$

Enter your values and select Calculate.

The APR for each loan is the figure worth trusting most when comparing offers, because it folds the interest rate together with points and closing costs into a single annualized cost. A loan with a lower stated rate but higher fees can end up with a higher APR than one with a slightly higher rate and fewer fees — that's the whole point of running this side by side.

The two inputs that move each loan's numbers the most are the interest rate and the discount points. A small change in rate compounds over the full term, and points are an upfront cost that only pays off if you keep the loan long enough to recoup it through the lower rate. Origination fees, title insurance, and other closing costs matter too, but usually less than those two.

This comparison doesn't account for property taxes, homeowners insurance, mortgage insurance, or how long you actually plan to keep the loan or the home — all of which affect which option is truly cheapest for you. It also assumes the rates and fees you entered are the ones you'll actually be offered at closing, which can shift until your rate is locked.

Use this as a starting point for a conversation with your lender or a broker, not a final answer. If you get a revised loan estimate, or rates move, it's worth plugging the new numbers back in and checking whether the ranking of these three loans changes.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.