Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
TPO Kit
Loan comparison calculator for loan officers.
Up to three options side by side: APR, payment, points and credits, interest and mortgage insurance, total cost over the years the borrower keeps the loan, and both break-evens.
Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
Paying Back the Points
APR counts every closing cost and point as a finance charge unless the lender's fees and points are entered separately.
Estimates from the inputs shown. Not a Loan Estimate or an offer to lend.
Inputs stay in this browser. Usage counts record the tool used and a few rounded figures, such as loan purpose, state and loan-amount band. No names, addresses or exact amounts.
Questions
How is the total cost worked out?
Points and fees, plus the interest and mortgage insurance paid through the years you entered. Principal isn't counted: it's the borrower's own equity. That's why a 15-year loan with a bigger payment can still come out lower.
Why are there two break-evens?
On the payment: the extra upfront cost divided by the monthly payment difference.
On total cost: the month the option that cost more upfront has made up the difference in interest and insurance. It's usually sooner, because a lower rate also pays the balance down faster.
How is the APR worked out?
Every closing cost and point counts as a finance charge unless you enter the lender's fees and points; then only that amount counts. A lender credit lowers the finance charge, never below zero. Monthly mortgage insurance counts until the balance reaches 78% of the home value, or for the full term when no value is entered.
Full closing costs, or just the difference?
Either gives the same comparison, as long as every option is entered the same way. Full closing costs give the right APR.
What does it leave out?
Adjustable rates, since every option is treated as fixed. Taxes, insurance and HOA dues, which don't change between options. Tax deductions, and what the cash kept at closing could earn. Pricing adjustments and eligibility: the rates and points are whatever you enter from your pricing engine. Mortgage insurance stops when the balance reaches 78% of the home value; with no value entered, it runs the whole horizon.
These are estimates from the inputs shown, not a Loan Estimate or an offer to lend.