Compare the offer, not just the rate
Loan Estimates can make a lower rate look attractive while points and lender charges move the real break-even farther out. This calculator keeps lender-controlled costs, cash to close, APR-like cost, and holding-period cost visible at the same time.
Loan Estimate inputs
Results
Payment difference
Upfront lender cost difference
Cash-to-close difference
Break-even month
Total cost at horizon
Interest paid difference
Balance at horizon difference
APR-like difference
| Offer | Rate | Monthly P&I | Lender cost / credit | Cash to close | APR-like | Interest by horizon | Balance at horizon | Total cost |
|---|
Caveats before choosing a lender
- Your official Loan Estimate and final Closing Disclosure control the actual fees, credits, APR, and cash to close.
- APR rules are technical. Some charges are included, some are excluded, and lender disclosures may differ from this simplified APR-like estimate.
- Third-party fees can change by provider, county, title company, attorney, recording office, and settlement date.
- Rate lock timing matters. A quote from yesterday may not be comparable to a quote locked today.
- Prepaid taxes, insurance, prepaid interest, and escrow deposits affect cash to close but are not always lender cost.
Loan Estimate comparison FAQ
Which offer is better if one has a lower payment but higher cash to close?
The break-even month is the practical check. If you expect to keep the loan past break-even, the lower-payment offer may win. If not, the lower-cash offer may be better.
Should I compare lender credits as negative points?
A lender credit often reduces upfront cash in exchange for a higher rate. The calculator subtracts credits from lender cost and cash to close so you can see that tradeoff.