Mortgage offer comparison
Compare the same loan amount over the same timeline. Separate the payment, borrowing cost, and debt left behind.
Work with your numbers
Starting figures are examples, not current market rates or personal advice. All monetary inputs are U.S. dollars. Inputs stay in this browser.
Offer B has lower borrowing costs
$1,185Illustrative estimate from the inputs above. No taxes or investment outcomes are guaranteed.
- Comparison horizon
- 5 years
- Five-year borrowing costs: A / B
- $104,097 / $102,912
No cost crossover within this comparison window.
Cash paid reconciles to principal repaid plus borrowing costsScroll horizontally on small screens.
| Money trail | Offer A | Offer B |
|---|---|---|
| Monthly principal + interest | $1,970 | $2,023 |
| Net fees and points upfront | $7,200 | $2,000 |
| Interest through horizon | $96,897 | $100,912 |
| Mortgage insurance through horizon | $0 | $0 |
| Borrowing cost = fees + interest + insurance | $104,097 | $102,912 |
| Total cash paid | $125,418 | $123,357 |
| Principal repaid (not an expense) | $21,321 | $20,445 |
| Remaining debt | $298,679 | $299,555 |
| Cash paid − principal repaid | $104,097 | $102,912 |
How the numbers reconcile
- Points = quoted loan amount × points percentage. Net upfront loan costs = fees + points − lender credits.
- Borrowing cost = net upfront loan costs + interest + mortgage insurance. Principal payments reduce debt; they are not a borrowing expense.
- Cash paid = upfront loan costs + payments. Cash paid minus principal repaid reconciles to borrowing cost. The five-year comparison is shown separately from your chosen horizon.
A worked reference case
At 0% interest, a $120,000 loan over 10 years costs $1,000 per month. After one year, $12,000 of principal is repaid and $108,000 remains. A $2,000 fee makes borrowing cost $2,000—not $14,000.
Assumptions and limits
Fixed-rate, fully amortizing loans only. All costs are paid upfront, not financed. Mortgage insurance stays at the entered amount while the loan is outstanding. Enter all borrowing-related fees, without duplicating points. Excludes common taxes, insurance, down payment, prepaids, escrow deposits, investment return, tax benefits and APR calculation. Compare APR and lock dates on the actual Loan Estimates too.
Source checked October 6, 2026: CFPB: comparing Loan Estimates. Sources inform the definitions; starting figures are illustrative inputs, not sourced market quotes.
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