Most homebuyers compare mortgage offers the wrong way: they look at the monthly payment and pick the lowest. That single mistake can cost $20,000–$40,000 over the life of the loan — because closing costs, APR, and PMI structure are invisible in the monthly number.

Why monthly payment comparisons mislead you

Consider two loan offers on a $400,000 home:

LenderRateMonthly P&IClosing costsTotal 30-yr cost
Lender A6.25%$2,155$4,000$780,000
Lender B6.50%$2,212$0$796,000

Estimates on a $320,000 loan (20% down on $400k). Lender B offered a "no-closing-cost" loan at a higher rate.

Lender A looks better on rate and total cost — but if you plan to move in 4 years, Lender B's higher rate with no closing costs actually saves money (you never break even on Lender A's $4,000 upfront cost). The right answer depends on your time horizon, not just the rate.

This is the kind of comparison the worksheet makes obvious in 5 minutes.

What's in the free worksheet

The Mortgage Loan Comparison Worksheet lets you enter up to 3 loan offers side by side. For each lender, you track:

  • Lender name and loan type (30yr fixed, 15yr fixed, FHA, VA, ARM)
  • Purchase price, down payment, and loan amount
  • Interest rate and APR — both, because they tell different stories
  • Monthly payment breakdown: P&I, taxes, insurance, PMI separately
  • Total monthly payment
  • Total interest paid over the loan term
  • Closing costs
  • Break-even point — how many months until a lower-rate option pays off

A second tab handles affordability notes: your DTI calculation, max comfortable payment, and observations per lender. The worksheet highlights the lowest total monthly payment and lowest total cost in green so the answer is visual, not buried in numbers.

Get the free worksheet

3 tabs: Loan Comparison · Affordability Notes · Instructions. Downloads as .xlsx — open in Excel or upload to Google Sheets via File → Import.

Downloads as .xlsx — open in Excel or upload to Google Sheets via File → Import

The 5 numbers that actually matter when comparing mortgages

1. APR, not just the interest rate

The interest rate is what the lender charges to borrow the principal. APR (Annual Percentage Rate)includes the interest rate plus lender fees, points, and other charges — expressed as an annual rate. It's the true cost of the loan.

A loan at 6.25% with $5,000 in origination fees has a higher APR than 6.25% with $1,000 in fees. The monthly payment looks identical; the total cost doesn't. Always compare APR when shopping, not just rate.

2. Total interest paid over the loan term

A 0.25% rate difference on a $350,000 loan is $52/month — but $18,720 over 30 years. When you're comparing offers that feel similar, looking at total interest paid makes the difference concrete.

3. Closing costs

Lender fees vary significantly — origination fees, underwriting fees, and points can differ by $3,000–$7,000 between lenders on identical borrowers. Get a Loan Estimate from each lender and compare Section A (lender fees) line by line.

4. PMI and when it drops off

Not all PMI is equal. FHA MIP lasts the life of the loan for most borrowers. Conventional PMI cancels when you reach 20% equity. Some lenders offer lower rates with higher PMI; others structure it the opposite way. The worksheet lets you enter PMI separately so the true monthly cost is visible.

5. Break-even point on a lower rate

If one lender offers a lower rate with higher closing costs, how long until the monthly savings cover those costs? If the break-even is 6 years and you plan to move in 4, the "better" rate actually loses. The worksheet calculates break-even automatically.

Calculate your estimated payment first

Before you start filling out the worksheet, use the MorgCalc payment calculator to estimate your monthly payment at different rates and loan amounts. That gives you a baseline to compare against lender quotes — so you can spot outliers immediately.

Use the mortgage payment calculator →

Where to get multiple loan quotes

The worksheet is only useful if you have real numbers to enter. Here's how to get them:

  • Credible — shows competing rates from multiple lenders with a single soft-pull application. Ideal for generating 3+ quotes quickly.
  • Direct lenders — apply directly to Rocket Mortgage, Better.com, or a local lender to get a formal Loan Estimate.
  • Your local credit union — often has the lowest rates for members. Call or check online.
  • Rate shopping window — all mortgage inquiries within a 14–45 day period count as a single hard inquiry under FICO rules. Get all your quotes within that window.

See the full lender comparison →

Once you have 3 Loan Estimates in hand, the worksheet turns an overwhelming stack of papers into a one-page comparison. The best loan is rarely the one with the lowest rate — it's the one with the lowest total cost for your time horizon.

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FAQ

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