Use this tool to compare mortgage loans side by side: monthly payment, total interest, and the point where a lower rate pays for itself.
Written by Renzo Johnson, Licensed Mortgage Loan Originator · Last updated: August 2026
- Enter: two or more scenarios with their rate, term, points and mortgage insurance
- See: monthly payment, total interest, and lifetime cost for each
- Find: the break-even month where paying points starts to win
- Interactive calculator coming soon.
Rate alone will not let you compare mortgage loans
Two offers at the same rate can cost thousands apart, because the rate says nothing about what you paid to get it. Points, lender fees and mortgage insurance all sit outside the rate and inside your real cost.
The APR folds most of those into one figure, which makes it a better first comparison than the rate. It is still imperfect, since it assumes you keep the loan for the full term and most people do not.
Break-even is the number that decides it
Paying a point buys a lower rate, so the question is how long the lower payment takes to repay that upfront cost. Divide the upfront cost by the monthly saving and you have the break-even month.
If you expect to sell or refinance before that month arrives, the cheaper closing costs win regardless of how attractive the rate looks. If you expect to stay well past it, the points win.
Mortgage insurance changes the shape
| Loan type | Mortgage insurance | Effect on a comparison |
|---|---|---|
| Conventional | PMI, cancellable at 20% equity | The payment falls partway through the term |
| FHA | MIP, usually for the life of the loan | The payment does not fall, so lifetime cost is higher |
A comparison that stops at the monthly payment misses this entirely. An FHA loan can start cheaper and finish far more expensive. Read FHA versus conventional for where the two cross over.
Next steps
Gather Loan Estimates from each lender on the same day, since pricing moves daily and a stale quote is not a comparison. Then request a personalised quote and we will lay the real scenarios beside each other.