Use these comparisons for planning; final eligibility, pricing and terms are set by the provider.
Compare the product features
| Decision dimension | Home Purchase Loans and Down-Payment Options | Mortgage Prequalification Options |
|---|---|---|
| Initial cash | Down payment and purchase expenses | Deposit and any retained investable cash |
| Recurring cost | Mortgage and full ownership expenses | Rent and renter costs |
| Exit | Sale proceeds net of selling cost and loan | Remaining savings under stated assumptions |
When to examine home purchase loans and down-payment options
Buying is a scenario to model with maintenance, sale costs and a realistic holding period included.
When to examine mortgage prequalification options
Renting is a scenario to model with future rent assumptions and a clear plan for the cash not used to buy.
Distinguish cash outflow from net position
Illustration: mortgage principal builds equity but still requires monthly cash. Rent does not build home equity, yet a renter may retain and save upfront funds. Compare cash flow and modeled end-of-period net position separately; appreciation, investment growth and repair costs are assumptions, not guaranteed outcomes.
Avoid an unequal cost comparison
Rent is not simply wasted money, and mortgage principal is not a complete ownership cost. Compare cash flows and terminal assets separately.
Use the same property or clearly label a different housing scenario. Match the net funds advanced, holding period and costs being counted. Principal repayment consumes cash but reduces debt; fees and interest are borrowing costs. Keep taxes, insurance, upkeep and any other recurring costs visible without counting them twice.
Inputs for the next step
| Input | Comparison use |
|---|---|
| Purpose and occupancy | Confirm both routes fit the actual transaction. |
| Written terms or labeled assumptions | Do not substitute a public advertisement for a personalized quote. |
| Upfront and financed charges | Show cash required and changes to the opening balance separately. |
| Expected holding period | Compare the payment history and remaining obligation at the same date. |
Choose a route, then request actual terms
At the expected move date, what are the cash costs and modeled net positions under each set of assumptions?
Use the linked product pages to identify the eligibility and documentation checks. Confirm them directly with a verified provider. For supported fully amortizing fixed-rate quotes, the quote tool compares entered costs; it does not rank lenders or certify that either proposal is available. For variable, project or other special financing, use the relevant calculator and contract-specific information.
Continue the comparison
Open Home Purchase Loans and Down-Payment Options · Open Mortgage Prequalification Options · Compare My Written Fixed-Rate Quotes
Program references and comparison sources
CFPB: Understand the different kinds of loans available — Loan structures, terms and repayment risks; not provider-specific eligibility.
CFPB: Loan Estimate explainer — Comparison of covered mortgage disclosures, cash to close, points, lender credits and monthly costs.
Check the linked source for its effective date and applicable scope. A source link is not a lender partnership or an individual offer.