Compare three different mortgages to determine the one that’s right for you
Determining which mortgage provides you with the best value is more than simply comparing monthly payments.
The mortgage comparison calculator will provide the monthly payments, fees and other costs associated with getting a new mortgage. By comparing these important variables for three different mortgages, you can select the mortgage that works best for your situation.
The annual percentage rate (APR) takes into account all factors to help you compare different loan options on an equal basis.
How to Use the Mortgage Comparison
- Enter your information in the fields below (See the definitions below the calculator for more information on each field.
- Once you have entered all information and selected your options, press the View Report button for a comparison of three different mortgages.
Definitions
- Mortgage amount
- Original amount or expected balance for the mortgage
- Interest rate
- Annual interest rate for the mortgage.
- Mortgage amortization
- The number of years over which you will repay this mortgage. The most common amortization periods are 20 years and 25 years.
- Fees
- Any fees that should be included in the annual percentage rate (APR) calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.
- Mortgage payment
- Principal and interest payment (P&I) per period. Calculated using semi-annual compounding of interest.
- Equivalent monthly payment
- The sum of periodic payments for a year divided by 12 months.
- Accelerated weekly and bi-weekly payments
- Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month.
- We calculate an accelerated weekly payment by taking your normal monthly payment and dividing it by four. Since you pay 52 weekly payments, by the end of a year you have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan’s principal. The effect can save you thousands in interest and take years off of your mortgage.
The accelerated bi-weekly payment is calculated by dividing your monthly payment by two. You then make 26 bi-weekly payments. Similar to the accelerated weekly payments you are in effect paying an additional monthly payment per year.
- Annual percentage rate (APR)
- The APR can help you compare different loan options on an equal basis. It’s a standard calculation used by lenders.
- For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value.
- APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different amortizations. All mortgages calculated with this calculator use semi-annual compounding. All APR calculations use annual compounding of interest.
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Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
