1. What is a Mortgage Comparison Calculator?

The Mortgage Comparison Calculator helps you compare different mortgage options by calculating the total cost including payments and fees. It also provides an amortization schedule showing how each payment is split between principal and interest.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

Where:

• \( P \) — Loan principal amount
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Total number of payments (loan term in years × 12)

Total Cost Calculation: The sum of all payments plus any additional fees.

3. Importance of Mortgage Comparison

Details: Comparing mortgages helps you understand the true cost of different loan options, including how interest rates and fees affect your total payments over time.

4. Using the Calculator

Tips: Enter the loan amount, interest rate, loan term in years, and any additional fees. The calculator will show your monthly payment, total payments, and total cost including fees.

5. Frequently Asked Questions (FAQ)

Q1: What's included in the total cost?
A: The total cost includes all principal and interest payments over the loan term plus any upfront or ongoing fees you specify.

Q2: How does amortization work?
A: Early payments are mostly interest, with more going toward principal over time. The amortization schedule shows this breakdown.

Q3: Should I choose a shorter or longer loan term?
A: Shorter terms have higher monthly payments but lower total interest costs. Longer terms have lower monthly payments but higher total interest.

Q4: How do fees affect the comparison?
A: Even small fees can significantly impact the total cost over the life of the loan. Always compare both interest rates and fees.

Q5: Can I see the amortization schedule?
A: The calculator generates a full amortization schedule that shows each payment's principal/interest breakdown and remaining balance.