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 |
|---|---|
| Net loan proceeds | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Fixed rate and term | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Cash or financed fees | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Existing first payment | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
| Total housing obligation | Use the actual written term for each quote; keep a different assumption explicitly labeled. |
Compare combined housing payments before selecting a term
A longer second-loan term can reduce its payment while increasing how long the home secures the debt. Add the first mortgage, taxes, insurance and association charges, then compare the new loan’s interest and fees over the period the cash is expected to be useful.
Review closing charges and prepayment terms as well as the rate. Compare a shorter and longer repayment period using actual offers. A smaller second-loan payment can still create an unmanageable combined housing burden.
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: a new $450 second-loan payment added to an existing $1,700 mortgage payment creates $2,150 of mortgage payments before any property costs excluded from those figures.
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 |
|---|---|
| Home Equity Loan 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.
What is my combined monthly mortgage debt after adding the new 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.