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Loan Comparison Calculator

Compare multiple loan or mortgage options side by side. Analyze interest rates, points, loan terms, and closing costs to find the best deal for your situation.

Loan Options

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Best Options

Lowest Monthly PaymentLoan Option 2$1,580/mo
Lowest Cost (7 Years)Loan Option 2$141,484
Lowest Total InterestLoan Option 3$148,209

Full Comparison

LoanMonthly PaymentUpfront CostsTotal InterestCost (7 yrs)
Loan Option 1
7% / 30yr
$1,663$5,000$348,772$144,714
Loan Option 2
6.5% / 30yr
$1,580$8,750$318,861$141,484
Loan Option 3
6.75% / 15yr
$2,212$4,000$148,209$189,831

After 7 Years

LoanPrincipal PaidInterest PaidRemaining BalanceEquity Built
Loan Option 1$22,131$117,582$227,8698.9%
Loan Option 2$23,959$108,775$226,0419.6%
Loan Option 3$86,245$99,586$163,75534.5%

Points Break-Even Analysis

LoanPoints CostMonthly SavingsBreak-EvenWorth It?
Loan Option 2$3,750$833.8 years✓ Yes

Loan Comparison Tips

Understanding Points

Points are upfront fees to lower your rate. 1 point = 1% of loan amount. They make sense if you'll keep the loan long enough to recoup the cost through lower payments.

15 vs 30 Year

15-year loans have higher payments but much lower total interest. A $250,000 loan at 6.5% costs $319,000 total over 15 years vs $569,000 over 30 years.

How Long Will You Stay?

If you'll move or refinance within 5-7 years, focus on lower upfront costs over lower rates. Points rarely pay off for short-term loans.

Frequently Asked Questions

How do I compare loan offers?

Compare loans by looking at:

  • Monthly payment: What you pay each month
  • Total interest: Total interest over the loan's life
  • Upfront costs: Points + closing costs
  • Total cost: If you sell or refinance early

The "best" loan depends on how long you'll keep it.

What are mortgage points?

Points are upfront fees to lower your interest rate:

  • 1 point = 1% of loan amount
  • On a $300,000 loan, 1 point = $3,000
  • Each point typically lowers rate by 0.25%

Should I pay points?

Calculate your break-even point:

Break-even = Points Cost ÷ Monthly Savings

  • If break-even is 5 years and you'll stay 10 years → Pay points
  • If break-even is 5 years and you'll move in 3 years → Skip points

15-year vs 30-year mortgage?

Factor15-Year30-Year
Monthly paymentHigherLower
Interest rateLower (~0.5% less)Higher
Total interestMuch lessMuch more
Equity buildingFasterSlower
FlexibilityLessMore

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