Tools
Loan Comparison
Compare two mortgages side by side: the payment, the interest over the life of each loan, the total cost, and how long extra up-front costs take to pay back.
What the comparison shows
For each loan the payment is the standard level payment on the price less the down payment. Total interest is the sum of the interest in every month of the schedule, and total cost is principal plus interest. A 15-year loan has a higher payment but far less interest; a lower rate bought with points costs money now and saves money every month. When the two loans are for the same amount, the break-even line divides the extra up-front cost by the monthly saving to show how many months you would need to keep the loan for the lower payment to pay for itself. Refinancing or selling before then means you would not recover the cost.