Compare scenarios
Two loans, side by side. Tweak the rate, term, or extra payment on Scenario B to see exactly how much interest you save and how much earlier the loan pays off.
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Configure a loan on the calculator first. Once you have a scenario, come back here to put a second one beside it and see which pays off faster, costs less, or both.
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Why comparing scenarios matters
A mortgage decision is rarely about a single number — it is about trade-offs. A lower rate, a shorter term, or an extra payment each pull the monthly payment, the total interest, and the payoff date in different directions. Putting two scenarios side by side is the fastest way to see which trade-off is actually worth it for you.
What a small rate difference really costs
Rates that look close on paper diverge enormously over 30 years, because the gap compounds on a large balance every single month.
On a $300,000 loan over 30 years, the difference between 6.5% and 7.0% — just half a percentage point — is about $100 a month. That sounds modest, but over the life of the loan it adds up to roughly $35,893 in extra interest. Side by side, the real cost of “close enough” becomes obvious.
Shorter term vs. lower payment
The other big trade-off is term length. A shorter term means a higher monthly payment but dramatically less interest over time.
- 30-year at 6.5%: about $1,896 a month and roughly $382,633 in total interest.
- 15-year at 6.5%: about $2,613 a month — $717 more — but only about $170,398 in interest.
- The 15-year costs more each month, yet saves around $212,235 over the life of the loan.
There is no universally right answer — it depends on your budget and your goals. Comparing both with your own numbers is how you decide. Adjust the term, rate, and extra payment on Scenario B above to see your own trade-off.
Frequently asked questions
Is a lower interest rate always the better deal?
Usually, but not always — you also have to weigh closing costs, the loan term, and how long you will keep the loan. A slightly higher rate with no points or fees can beat a lower rate that costs thousands upfront. Comparing both scenarios side by side, including total interest, is the only way to know for sure.
How much does half a percentage point really matter?
More than most people expect. On a $300,000 30-year loan, going from 6.5% to 7.0% adds about $100 to the monthly payment and roughly $35,893 in interest over the life of the loan.
Should I choose a 15-year or 30-year mortgage?
A 15-year loan saves enormous interest — over $200,000 on a $300,000 loan in the example above — but the monthly payment is hundreds of dollars higher. If your budget can absorb it comfortably, the 15-year wins on cost; if flexibility matters more, the 30-year keeps payments low. Compare both above with your own numbers.
Does making extra payments beat choosing a shorter term?
They reach similar results with different commitments. A shorter term locks in the higher payment; voluntary extra payments on a longer term give you the same interest savings while keeping the lower payment as a fallback. Compare a 30-year with extra payments against a 15-year to see which fits your situation.
What should I keep the same when comparing two scenarios?
Hold the loan amount constant and change one variable at a time — rate, term, or extra payment — so you can see exactly what that single change costs or saves. Changing several at once makes it hard to tell which one drove the difference.