1. What is Mortgage Rate Comparison?

Mortgage rate comparison helps borrowers evaluate different loan options by calculating the total cost including payments and fees. This allows for informed decision-making when choosing between mortgage products.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Payments — Total of all mortgage payments over the loan term
• Fees — Any additional costs associated with the mortgage

Explanation: The equation sums all payments and adds any fees to determine the true total cost of the mortgage.

3. Importance of Mortgage Comparison

Details: Comparing mortgages helps borrowers find the most cost-effective option, potentially saving thousands over the life of the loan.

4. Using the Calculator

Tips: Enter total payments and fees in your local currency. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What should be included in fees?
A: Include origination fees, closing costs, points, and any other lender charges.

Q2: Should I compare interest rates or total costs?
A: While interest rates are important, comparing total costs gives a more complete picture of loan affordability.

Q3: How accurate is this calculator?
A: It provides basic comparison. For precise comparisons, consult with a mortgage professional.

Q4: Does this include tax benefits?
A: No, this calculator shows gross costs before any potential tax deductions.

Q5: Should I choose the lowest total cost?
A: Not necessarily. Consider payment schedules, prepayment options, and your financial situation.