Is a 15-year or 30-year mortgage better?

A 15-year mortgage saves significantly on total interest (often 50-60% less) but has higher monthly payments. A 30-year mortgage offers lower payments and more flexibility. If you can afford the higher payment, a 15-year loan saves the most money.

Should I choose FHA or conventional loan?

FHA loans are better for low down payments (3.5%) and lower credit scores, but have permanent mortgage insurance. Conventional loans are better if you can put 20% down to avoid PMI entirely and get lower rates.

Is an ARM or fixed-rate mortgage better?

ARMs offer lower initial rates and are good if you plan to sell or refinance within 5-7 years. Fixed-rate mortgages provide stability and are better for long-term homeowners who want predictable payments.

How much difference does 0.5% interest rate make?

On a $320,000 loan over 30 years, a 0.5% rate difference (6.5% vs 6.0%) changes the monthly payment by about $100 and total interest by approximately $38,000. Always shop around for the best rate.

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Loan Comparison Calculator

Compare up to 3 mortgage scenarios side-by-side. Adjust home price, down payment, interest rate, and loan term to see which option saves you the most money.

Quick Preset Scenarios

Load a common comparison scenario with one click

Loan Scenarios

Home Price ($)

Down Payment ($)

20.0% of home price

Interest Rate (%)

Loan Term

Loan Amount$320,000

Monthly Payment$2,023/mo

Total Interest$408,142

LTV Ratio80.0%

Home Price ($)

Down Payment ($)

20.0% of home price

Interest Rate (%)

Loan Term

Loan Amount$320,000

Monthly Payment$2,700/mo

Total Interest$166,062

LTV Ratio80.0%

Visual Comparison

Detailed Comparison

Metric	Scenario A	Scenario B
Home Price	$400,000	$400,000
Down Payment	$80,000	$80,000
Loan Amount	$320,000	$320,000
Interest Rate	6.5%	6%
Loan Term	30 years	15 years
LTV Ratio	80.0%	80.0%
Monthly Payment	$2,023	$2,700
Total Interest	$408,142	$166,062
Total Cost	$728,142	$486,062

Smart Recommendation

Best overall: Scenario B

•Lowest total interest: $166,062
•Lowest total cost: $486,062
•Scenario A has the lowest monthly payment ($2,023/mo)

Note: The "best" loan depends on your financial goals. If cash flow is tight, a lower monthly payment may be more important than total interest saved. If you want to build wealth faster, minimizing total interest is key.

How to Compare Mortgage Loans

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Compare Total Cost, Not Just Rate

A lower interest rate doesn't always mean a cheaper loan. A 15-year mortgage has a lower rate but higher monthly payments. Always compare the total interest paid over the life of the loan.

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Consider Your Monthly Budget

The lowest total cost option may strain your monthly budget. A 30-year loan frees up cash flow for investments, emergencies, or other goals. Balance affordability with total savings.

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FHA vs Conventional

FHA loans require as little as 3.5% down but come with mortgage insurance premiums (MIP). Conventional loans require 3-20% down with PMI that can be removed at 20% equity.

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ARM vs Fixed Rate

Adjustable-rate mortgages (ARMs) start with lower rates but can increase after the initial period. If you plan to sell or refinance within 5-7 years, an ARM can save you money.