How to use this calculator
- Enter the loan amount, rate, and term for Scenario A.
- Enter the rate and term for Scenario B. Leave its loan amount blank to use Scenario A’s amount.
- Select Compare to see both scenarios side by side.
What the results show
- The monthly principal-and-interest payment for each scenario.
- Total interest over each full term, which option costs less in interest, and which has the lower monthly payment.
Frequently asked questions
Why can a lower monthly payment cost more?
A longer term spreads the balance over more payments, which lowers each payment but gives interest more months to accrue. A 30-year loan often has a lower payment than a 15-year loan at a similar rate but a much larger total interest cost.
Does this comparison include closing costs, points, or mortgage insurance?
No. It compares principal and interest only. To compare full offers, look at the Loan Estimates from each lender, including closing costs, points, lender credits, and mortgage insurance.
What if I sell or refinance before the loan is paid off?
The totals assume each loan is kept for its full term with no extra payments. If you expect to move or refinance sooner, the interest you would actually pay on either option is lower than shown, and upfront costs matter more.
Can I compare two different loan amounts?
Yes. Enter a loan amount for each scenario, for example to compare a larger down payment against a smaller one. If Scenario B’s amount is blank, it uses Scenario A’s amount.
Lighthouse provides educational information, not a personal loan quote, lending decision, or legal or financial advice. Results are estimates based only on the numbers you enter. Verify the figures against your documents and ask your lender, servicer, or a qualified professional about your circumstances.