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 |
|---|---|
| 240-month term | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Existing remaining months | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Quoted rate and points | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Upfront fees | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Selected comparison month | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
Use the remaining current term in a refinance comparison
For an existing mortgage with 18 years left, a new 20-year term extends repayment despite sounding shorter than a standard 30-year mortgage. Compare keeping the current loan, refinancing into 20 years and choosing a shorter quoted term, with fees included.
Compare the twenty-year payment with a thirty-year scenario and a fifteen-year scenario from the same quote period. For a refinance, include the current loan’s remaining term rather than comparing every alternative only with a fresh thirty-year loan.
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: compare a mortgage with 216 months remaining against a new 240-month offer. Evaluate the balance and interest at the same 60-month horizon before treating a payment reduction as a cost reduction.
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.
Does this term improve the actual repayment plan after closing costs are included? 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.