Mortgage Rate Calculator - Compare Interest Rates
Free mortgage rate calculator to compare different interest rates and find the best mortgage deal for your home loan
Mortgage Rate Calculator
Rate Comparison
What is a Mortgage Rate Calculator?
A mortgage rate calculator is a free financial tool that helps you compare different interest rates for the same home loan. It shows how small differences in mortgage rates can significantly impact your monthly payments and total loan costs.
This calculator helps with:
- Rate shopping - Compare multiple lender offers effectively
- Payment planning - See how rates affect your monthly budget
- Cost analysis - Understand total interest and loan costs
- Decision making - Choose the best rate for your situation
- Savings calculation - Quantify potential savings from better rates
Mortgage Rate Components
Understanding mortgage rates involves several key components:
Interest Rate
The percentage charged on your loan balance. Lower rates mean lower payments.
APR
Annual Percentage Rate includes fees. Compare APR for true cost.
Points
Prepaid interest reducing your rate. Calculate break-even period.
Rate Lock
Guaranteed rate for specified period. Choose 30-60 day locks.
Types of Mortgage Rates
Fixed-Rate Mortgages
Rate stays the same for entire loan term. 30-year and 15-year options available.
Adjustable-Rate Mortgages (ARM)
Lower initial rates that adjust later. Good for short-term ownership.
VA/FHA Loans
Government-backed with competitive rates. Lower down payment requirements.
How to Use This Mortgage Rate Calculator
Enter Loan Details
Input home price, down payment, and loan term
Add Property Costs
Include annual property tax and insurance
Enter Rate Options
Input three different interest rates to compare
Compare Results
View monthly payments and total costs for each rate
Benefits of Rate Comparison
- •Save Thousands: Small rate differences can save $10,000+ over loan life
- •Smart Shopping: Compare multiple lender offers objectively
- •Budget Planning: See exact monthly payment differences
- •Long-term Savings: Understand total interest cost impact
- •Better Decisions: Make informed choices about rate vs. points
Rate Shopping Tips
1. Shop Multiple Lenders
Get quotes from 3-5 lenders. Online lenders often have competitive rates.
2. Check Credit Score
Higher scores get better rates. Check and improve your score before shopping.
3. Compare APR
Look at Annual Percentage Rate for true cost comparison including fees.
4. Consider Points
Buying points can lower your rate. Calculate if savings outweigh upfront cost.
Frequently Asked Questions
Common questions about mortgage rates and rate comparison
How do I find the best mortgage rate?
Shop around with multiple lenders, check your credit score, consider your debt-to-income ratio, and compare both interest rates and closing costs. Even a 0.25% difference in rate can save thousands over 30 years.
What is a good mortgage interest rate?
Current rates vary by market conditions, but generally 6-7% is considered good for a 30-year fixed mortgage. Rates below 4% are excellent, while rates above 8% may indicate higher risk or poor credit.
How much does 0.25% rate difference cost?
A 0.25% rate difference on a $300,000 loan can add $15-20 to monthly payments and $10,000-15,000 to total interest over 30 years. Small rate differences have big long-term impacts.
Should I lock my rate or float?
Lock your rate when you find a competitive offer and are ready to close within 30-60 days. Float only if rates are expected to drop significantly and you can afford potential increases.
What affects my mortgage interest rate?
Credit score, debt-to-income ratio, down payment amount, loan type, market conditions, and lender competition all affect your mortgage rate. Higher credit scores get better rates.
How long do rate locks last?
Rate locks typically last 30-60 days. If closing takes longer, you may need to extend the lock (usually for a fee) or get a new rate quote. Plan your timeline accordingly.
Can I get a better rate by paying points?
Buying discount points can lower your rate by 0.25% per point paid. Calculate the break-even period - if you'll own the home long enough to recover the cost through lower payments, it may be worthwhile.
What credit score do I need for the best rates?
Scores above 740 typically get the best rates. Scores of 680-739 get good rates, 620-679 get fair rates, and below 620 may require FHA loans with higher rates and fees.