Interest Rate Comparison Calculator

Understanding Mortgage Rate Comparison

When shopping for a mortgage, comparing offers from different lenders is crucial. A seemingly small difference in interest rates can result in savings or costs of tens of thousands over the life of your loan. This calculator helps you make an informed decision by comparing the true cost of different mortgage offers.

Did You Know?

A difference of just 0.5% in interest rate on a €300,000 30-year mortgage could mean a difference of over €30,000 in total interest paid!

Key Terms to Understand

Interest Rate

The basic rate charged on your loan, expressed as a percentage

APR (Annual Percentage Rate)

The total yearly cost including interest rate and fees, giving you the true cost of the loan

Discount Points

Fees paid upfront to lower your interest rate (1 point = 1% of loan amount)

Closing Costs

Additional fees charged by the lender to process and close your loan

What to Look For

Compare APRs

APR is often more important than the base interest rate as it includes fees

Consider Total Costs

Look at both upfront costs and long-term interest payments

Evaluate Points vs. Rate

Determine if paying points for a lower rate makes financial sense

How to Use This Comparison Tool

1

Gather Your Loan Offers

Before using this calculator, collect the following from each lender:

  • Interest rate offered
  • All closing costs and fees
  • Any discount points required or offered
  • Loan terms (duration)
2

Enter Basic Loan Information

Input the following details:

  • Total loan amount you're seeking
  • Desired loan term (usually 15 or 30 years)
3

Input Lender Offers

For each lender offer, enter:

  • Lender name for easy reference
  • Interest rate they're offering
  • Total closing costs and fees
  • Any discount points being charged
4

Analyze the Results

The calculator will show you:

  • Monthly payments for each offer
  • Total interest paid over the loan term
  • APR for each offer
  • Total cost comparison including all fees
  • Visual charts to help you compare offers

Important Tips

  • ⚠️Make sure all quotes are from the same day, as rates change daily
  • ⚠️Ask lenders to provide a Loan Estimate form for accurate fee comparison
  • ⚠️Consider how long you plan to stay in the home when evaluating points vs. rate tradeoffs

Compare Offers

Lender Offers

Offer 1

Offer 2