Use these comparisons for planning; final eligibility, pricing and terms are set by the provider.
Terms Needed for a Like-for-Like Quote
| Quote component | What to record |
|---|---|
| 120-month repayment | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Current principal balance | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Actual note rates | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Refinance costs | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Extra-payment alternative | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
Compare a new short-term mortgage with keeping the current note
A new ten-year loan creates a new contractual payment and closing transaction. Paying extra on an existing mortgage may reach a similar date without the same fees, but rates and timing differ. Use actual quotes and the current note rather than assuming refinancing always wins.
Model the quote against keeping an existing loan and paying additional principal. Include opportunity costs and the cash reserve left after closing without assuming investment returns. A smaller remaining balance can make fixed refinance fees relatively important.
Rate, APR, points and total cost
The note rate drives interest calculations. An APR includes specified costs under the applicable disclosure rules and is not interchangeable with a monthly payment. Points and lender credits change the upfront/rate trade-off. Compare the actual disclosures and ask the provider to identify which charges are financed, paid in cash or offset by credits. The tool’s borrowing-cost output is not a regulatory APR. CFPB: Loan Estimate explainer
A transaction scenario to compare
Illustration: on a $100,000 balance, $3,000 of refinance fees equals 3% of the balance before interest. Compare the fee recovery and payoff date rather than relying only on a lower advertised rate.
Open the appropriate calculator. Replace illustrative starting values with your own assumptions. Review the result’s exclusions before using it in a decision.
Choose the product before choosing a quote
| Financing route | When to compare it |
|---|---|
| Fixed-Rate Mortgage Options | Review product parameters, eligibility and documents. |
| Mortgage Rate-Lock Options | Check the written lock period and extension terms. |
| Mortgage Closing Cost Comparison | Separate lender charges, prepaid items and cash to close. |
How to use the comparison result
First verify that both quotes address the same purpose and net amount. Next compare the required payment with your budget, then compare interest, fees and the balances at a common future month. A different loan amount produces a warning in the quote tool. For ARMs, HELOCs, balloons, interest-only or reverse loans, use the actual contract and relevant product model instead of treating them as standard fixed-rate loans.
Are the refinance costs justified compared with an extra-payment plan on the existing loan? This question requires the actual provider’s written terms; the page supplies no live lender offer or guaranteed closing rate.
Program references and comparison sources
CFPB: Loan Estimate explainer — Comparison of covered mortgage disclosures, cash to close, points, lender credits and monthly costs.
CFPB: Understand the different kinds of loans available — Loan structures, terms and repayment risks; not provider-specific eligibility.
Check the linked source for its effective date and applicable scope. A source link is not a lender partnership or an individual offer.