Mortgage Rate Comparison

Lenders lead with the rate. The cost of the loan also depends on points, lender credits and fees, and an offer that buys the rate down can cost more than one that does not. This workbook puts every quote in one table and ranks them on the total.

What This Workbook Does

• One row per lender quote: date, loan amount, term, note rate, APR, points paid and lender credits.
• Monthly principal and interest, interest over the term and net upfront cost, calculated for you.
• Total cost for each quote and a marker on the lowest, plus the payment difference against the cheapest.
• A notes column for the conditions that came with each quote.

Interest over the term is the monthly payment times the number of payments, less the amount borrowed — exact for a fixed-rate loan held to term.

How to Use It

1. Gather quotes as close together as you can; rates move daily.
2. Enter the note rate and the APR separately — they answer different questions.
3. Enter points as the dollar amount paid, and lender credits as a positive number.
4. Let the workbook calculate the payment, interest over the term and total cost.
5. Read the lowest-total-cost marker.
6. Before committing, decide how long you will really keep the loan. If it is only a few years, the option without points often wins even when its hold-to-term cost is higher.

What It Will Not Do

Total cost assumes you hold the loan to term and make no extra payments, which few people do. Treat the ranking as a starting point, and weigh the upfront cost against how long you expect to keep the loan.