Which loan offer actually costs less?
Compare your own Loan Estimates side by side. See the fees, monthly payment and cost over the years you expect to keep the loan. Free to use. No login required.
How it works
- Enter the numbers from your Loan Estimates.
- Check the loan terms, monthly payment pieces and closing costs.
- Choose how long you expect to keep the loan.
- Compare the costs and ask your lender about the differences.
Loan Estimate terms, explained
What is a Loan Estimate?
A standard 3-page form every lender must give you within 3 business days of applying. Because every lender uses the same form, you can line offers up box by box.
Why isn't the lowest rate always the cheapest loan?
A lower rate often comes with points or higher fees. You pay those on day one, while the rate savings arrive a little each month. If you sell or refinance before the savings catch up, the higher-rate offer was cheaper.
What are discount points?
Money you pay at closing to lower your rate. One point costs 1% of the loan. Points pay off only if you keep the loan long enough. Ask for the zero-point rate to check.
What are lender credits?
The opposite of points. The lender pays some of your closing costs in exchange for a higher rate.
Which closing costs should I compare?
Focus on Section A (the lender's own fees) and Section B. Section C you can shop yourself. Sections E, F and G are taxes, insurance and escrow, which are about the same with any lender.
What is PMI and MIP?
Insurance that protects the lender when you put down less than 20%. Conventional loans call it PMI. FHA calls it MIP; with less than 10% down it lasts for the life of the loan.
What is upfront MIP?
A one-time FHA charge of 1.75% of the loan, usually added to your balance. You pay interest on it for as long as you keep the loan.
What does cash to close include?
Your down payment plus closing costs, minus your earnest money deposit and any seller or lender credits.
How does an ARM work?
The rate is fixed for an intro period (often 5, 7 or 10 years), then can change with the market. Caps limit how much it can rise each time and over the life of the loan.
What is a 2-1 buydown?
Your rate is 2% lower in year one and 1% lower in year two, then goes to the full rate. It lowers early payments but does not change your long-term rate.
What is APR?
The rate plus most fees, spread over the full loan term. It helps compare offers, but it assumes you keep the loan for its whole life, which most people don't.
Can I negotiate a Loan Estimate?
Yes. Show a lender a competing Loan Estimate and ask them to match the rate or lower Section A fees. Many will.
What happens to the files I upload?
Uploading is coming soon. For now, enter the numbers from your Loan Estimate.