How to use this calculator
A small difference in rate is a large difference in money. On a $400,000 30-year loan, 6.25% instead of 6.75% lowers the payment by about $130 a month and saves more than $45,000 in interest over the life of the loan. Enter two offers — from two lenders, or two options from the same lender — and the calculator shows the payment and total interest for each, with the better figure highlighted.
The lowest rate is not always the cheapest loan. Lenders often sell a lower rate for discount points: one point costs 1% of the loan and typically lowers the rate by about 0.25%. Enter each offer’s closing costs — or its APR from the Loan Estimate — to see the total paid, and in Advanced mode how many months the cheaper payment takes to earn back the extra paid up front. If you expect to sell or refinance before that break-even, the offer with lower costs usually wins.
You can also compare different terms, such as a 15-year against a 30-year. The shorter loan has a higher payment but far less total interest. This calculator is for illustration only; your actual rate and costs depend on credit, down payment, property and program.
For illustration purposes only. Not a rate quote, loan offer, or commitment to lend. Contact us for a personalized quote.