Mortgage Rate Comparison Calculator
Compare up to three loan offers side by side — rate, APR, points, and fees — with a break-even analysis.
Compare Offers →Compare Your Loan Offers
Results update as you change any input.
Estimates are for educational purposes only · Not a loan offer
Side-by-Side Comparison
We don't declare a "winner" — the right offer depends on how long you plan to keep the loan and your available upfront cash.
| Compare | Offer A | Offer B |
|---|---|---|
| Interest Rate | 6.75% | 6.25% |
| APR | 6.85% | 6.42% |
| Term | 30 years | 30 years |
| Points | 0 | 1 ($3,600) |
| Lender Fees | $1,500 | $3,000 |
| Total Upfront Cost | $1,500 | $6,600 |
| Monthly P&I | $2,335 | $2,217 |
| Est. Total Interest | $480,583 | $437,969 |
Lowest upfront cost among your offers — used as the comparison baseline below.
$5,100 higher upfront cost, $118/mo lower payment — breaks even in ~43 months.
Total Cost of Each Loan (Upfront + Interest)
Assumes the loan is held for its full term — see the "How Long You Keep the Loan" comparison below for shorter holding periods.
Educational Use Only: Reaixo is not a lender, mortgage broker, financial advisor, or loan originator. Calculations are estimates for informational and educational purposes only and may not include every cost associated with a mortgage. Rates, APRs, fees, taxes, insurance, mortgage insurance, eligibility, and loan terms vary by borrower, property, lender, loan program, and market conditions. Verify all figures and loan terms with a qualified lender and review your official Loan Estimate before making a financial decision.
Interest Rate vs. APR
Interest Rate determines the interest charged on your loan balance — it's what your principal & interest payment is calculated from.
APR is designed to reflect the interest rate plus certain loan costs (like points and some fees), expressed as an annualized rate. It can make offers easier to compare, but a lower APR doesn't automatically mean a better fit — a loan with a lower APR but higher upfront points may not pay off if you don't keep the loan long enough to reach the break-even point.
Use both figures alongside a full review of each lender's official Loan Estimate — not as the only factor in your decision.
The Formula This Calculator Uses
$360,000 loan. Offer A: 6.75%, 0 points, $1,500 fees → P&I ≈ $2,335/mo, $1,500 upfront.
Offer B: 6.25%, 1 point ($3,600), $3,000 fees → P&I ≈ $2,217/mo, $6,600 upfront.
Extra upfront = $6,600 − $1,500 = $5,100 · Monthly savings = $2,335 − $2,217 = $118
Break-even = $5,100 ÷ $118 ≈ 43 months (about 3.6 years).
Why How Long You Keep the Loan Matters
The break-even point only tells half the story — what actually matters is the total cost (upfront cost plus every payment made) over how long you actually keep the loan. Based on your current Offer A and Offer B:
A loan with higher upfront costs can look worse on day one and still cost less overall if you keep it long enough to clear the break-even point — and the reverse is true if you sell or refinance sooner than expected.
Frequently Asked Questions
Should I compare interest rate or APR?
Both matter, but they answer different questions. The interest rate determines the interest charged on the loan balance. The APR is designed to reflect the rate plus certain loan costs, expressed as an annualized figure — useful for comparison, but not a substitute for reviewing the full Loan Estimate.
What is a break-even period?
When one offer has a lower monthly payment but higher upfront costs (points or fees), the break-even period is roughly how many months it takes for the monthly savings to make up for that extra upfront cost. If you expect to keep the loan past the break-even point, the lower-payment offer may save more over time — but that depends on your own plans.
Why doesn't this calculator pick a "best" offer?
The right offer depends on factors this tool can't know — how long you plan to keep the loan, how much upfront cash you have available, and your own risk tolerance. This calculator shows the numbers side by side so you can decide what fits your situation.
What are discount points?
1 point equals 1% of the loan amount, paid upfront in exchange for a lower interest rate. Whether points are worth paying depends on how long you plan to keep the loan relative to the break-even period.
How many lenders should I get quotes from?
Most guidance suggests comparing at least a few lenders — banks, credit unions, and mortgage lenders/brokers can all be worth checking. Request quotes for the same loan amount, type, and lock period, ideally around the same time, since market pricing moves.
Does this include closing costs beyond lender fees?
No — this tool focuses on the rate, APR, points, and lender fees you enter. Title fees, government recording fees, prepaid taxes/insurance, and other third-party closing costs are not included. Use a dedicated closing cost calculator for a fuller picture of cash needed at closing.
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Educational Use Only: Reaixo is not a lender, mortgage broker, financial advisor, or loan originator. Calculations are estimates for informational and educational purposes only and may not include every cost associated with a mortgage. Rates, APRs, fees, taxes, insurance, mortgage insurance, eligibility, and loan terms vary by borrower, property, lender, loan program, and market conditions. Verify all figures and loan terms with a qualified lender and review your official Loan Estimate before making a financial decision.