🏠 Compare Mortgage Options Calculator FREE - Which Loan Saves You More?

When comparing mortgages, prioritize these factors in order:

1. Total cost over loan lifetime: Including interest and fees
2. Monthly payment affordability: Ensure it fits your budget
3. Interest rate and APR: Lower rates save money long-term
4. Closing costs: Can significantly impact your upfront costs
5. Loan features: Prepayment penalties, rate locks, etc.

Not necessarily. While a lower monthly payment improves cash flow, consider:

• Total interest paid: Longer loans typically cost more over time
• Equity building: Higher payments build equity faster
• Financial flexibility: Lower payments provide more flexibility
• Investment opportunities: Extra cash could be invested elsewhere

Choose based on your overall financial strategy and goals.

A 0.25% difference in interest rate can have a significant impact:

Even small rate differences compound significantly over the loan term.

Paying points (discount points) can make sense if:

• You plan to stay in the home long-term: Need time to recoup the upfront cost
• You have extra cash available: Don't compromise your emergency fund
• The break-even period is reasonable: Typically 5-7 years or less
• You won't miss investment opportunities: Consider alternative uses for the cash

Use our calculator to compare scenarios with and without points to determine if it's worth it for your situation.

When comparing ARM vs fixed-rate mortgages:

Consider ARMs if: You plan to move or refinance before the rate adjusts, rates are expected to fall, or you need lower initial payments.

Choose fixed-rate if: You plan to stay long-term, prefer payment predictability, or rates are expected to rise.

Include all upfront costs in your comparison:

Some lenders offer "no closing cost" loans but typically charge higher interest rates. Compare the total cost over your expected loan term to determine the better option.

Refinancing typically makes sense when:

• New rate is at least 0.5-1% lower than current rate
• Break-even period is 2-3 years or less
• You plan to stay in the home beyond break-even
• You want to switch loan terms (30-year to 15-year)
• You want to eliminate PMI or access equity

Calculate: Monthly savings × months = total savings. Compare to closing costs to find break-even point.

Use our calculator above to compare your current mortgage vs potential refinance options!

Bottom Line: FHA is often better for first-time buyers with limited down payment. Conventional is better for those with 20%+ down payment.

First-Time Buyer Comparison Checklist:

1. Get pre-approved with 3-5 lenders - Compare rates, fees, and service
2. Compare loan programs: FHA, VA, USDA, conventional, first-time buyer programs
3. Evaluate down payment options: 3%, 5%, 10%, 20% scenarios
4. Calculate total monthly payment: Principal + Interest + Taxes + Insurance + PMI
5. Factor in closing costs: Can be 2-5% of loan amount
6. Consider long-term plans: How long will you stay in the home?

Pro Tips:

• Don't just compare interest rates - look at APR
• Ask about first-time buyer incentives and grants
• Consider rate locks during your home search
• Factor in potential PMI removal timeline