BUYER & SELLER TOOLS
Loan Comparison
Two quotes, one clear answer. Compare payments, lifetime interest, and how long it takes points or fees to pay for themselves.
Scenario A
Scenario B
Estimates only — not a lending quote. Talk to Ethan for numbers specific to your situation.
Comparing loan offers the right way
Two loan offers rarely differ by rate alone — one has a lower rate but charges points; the other is 'no-cost' at a higher rate. The right comparison isn't the monthly payment, it's the break-even: how many months of payment savings it takes to earn back the upfront fees. Keep the loan past break-even and the points paid off; sell or refinance before it and you overpaid.
This calculator runs both scenarios through full amortization: payments, lifetime interest, and the break-even month, then calls the winner for the full term. Your real answer depends on how long you'll actually keep the loan — be honest with yourself about that.
Utah specifics worth knowing
- Shop at least two or three lenders — Utah has a competitive mix of local credit unions, banks, and brokers, and quotes on identical files genuinely differ.
- If there's a decent chance you'll move within a few years (common for growing Utah families), paying points rarely pencils — the break-even math above will show it.
- Compare offers on the same day if possible; rate sheets move daily and a stale quote isn't a real comparison.
Common questions
Are mortgage points worth it?
Points are prepaid interest: you pay more upfront for a lower rate. They're worth it only if you keep the loan well past the break-even month this calculator computes. Long-haul owners often benefit; anyone likely to sell or refinance within a few years usually shouldn't pay them.
What's better: a lower rate with fees or a no-cost loan?
It depends entirely on your holding period. The no-cost loan wins early; the bought-down rate wins after break-even. Enter both offers above and look at the break-even month against your honest expectations for the home.
Should I compare APR instead?
APR bundles fees into a single rate assuming you keep the loan full term — which most people don't. The break-even method models your actual timeline, which is why it's the better decision tool for real comparisons.