Mortgage comparison: rate, points, closing costs and break-even
Mortgage offers are hard to compare because lenders mix rates, points and fees differently. Attach your Loan Estimates or offer letters and your todo.is agent lines them up, works out the cost over the years you'll really keep the loan, and lists what to negotiate.
The prompt
- Compare these mortgage offers for a [HOME PRICE AND DOWN PAYMENT] purchase: [MORTGAGE OFFERS] (Loan Estimates attached). For each, show rate, APR, term, fixed or adjustable, points paid, lender fees, total closing costs, monthly principal and interest, and estimated monthly total with taxes and insurance if listed. Calculate the total cost if I keep the loan [YEARS I EXPECT TO STAY] years, and the break-even month for any offer that charges points. For adjustable loans, show the payment after the first adjustment at the cap. Put it all in an Excel file with a summary tab, then write a one-page PDF with the cheapest option for my time frame, the fees that look negotiable, and questions to ask each lender. Search for current average rates for [LOAN TYPE] in [MY COUNTRY OR STATE], with sources, so I know if my offers are in line.
What to change
- [HOME PRICE AND DOWN PAYMENT]: E.g. "$420,000 home with 15% down".
- [MORTGAGE OFFERS]: Lender names, or a short summary of each. Attach the Loan Estimates or offer PDFs if you have them.
- [YEARS I EXPECT TO STAY]: Your honest guess, e.g. "7". This decides whether paying points is worth it.
- [LOAN TYPE]: E.g. "30-year fixed", "15-year fixed", "5/6 ARM" or "2-year fixed in the UK".
- [MY COUNTRY OR STATE]: Where the home is, e.g. "Colorado" or "England".
Example result
- $420,000 home, 15% down, loan of $357,000
- 30-year fixed · you expect to stay about 7 years · figures from your Loan Estimates, illustrative
- The three offers
- • Lender A: 6.125% with 1 point ($3,570) · lender fees $1,450 · principal and interest $2,169/month · cash to close for the loan $5,020
- • Lender B: 6.375%, no points · lender fees $1,200 · principal and interest $2,227/month · cash to close for the loan $1,200
- • Lender C: 6.25% with 0.5 point ($1,785) · lender fees $2,400 · principal and interest $2,198/month · cash to close for the loan $4,185
- Cost over 7 years (payments + upfront loan costs)
- • Lender A: $187,216
- • Lender B: $188,268
- • Lender C: $188,817
- Break-even on points
- • Lender A saves $58/month vs B but costs $3,820 more upfront: break-even around month 66. Staying 7 years (84 months), A comes out slightly ahead.
- • Lender C never beats A, because its fees are higher.
- What this means
- • If you're sure you'll stay 7+ years, Lender A is cheapest by about $1,050
- • If there's a real chance you move or refinance within 5 years, Lender B wins: less cash upfront and lower risk
- Fees worth negotiating
- • Lender C's $895 "processing fee" and $650 "underwriting fee" overlap
- • Ask Lender A to match B's lender fees
- • Title services are shoppable on all three Loan Estimates
- Questions to ask
- • How long is the rate lock, and what does an extension cost?
- • Is there a prepayment penalty?
- • Can you send an updated Loan Estimate if I buy down the rate?
How to do it with todo.is
- Copy the prompt and fill in the price, down payment, loan type and how long you'll stay.
- Paste it into todo.is and attach your Loan Estimates or offer letters.
- Your agent calculates each offer, finds the break-even on points and checks current average rates with sources.
- You get an Excel comparison and a one-page PDF summary. Ask "what if I put 20% down?" to add a scenario.
Tips for a better result
- Get all quotes on the same day if you can. Rates move daily, so quotes from different weeks aren't comparable.
- Compare lender fees (origination, underwriting, processing) separately from third-party costs like appraisal and title.
- Only pay points if you're confident you'll keep the loan past the break-even month.
- For adjustable-rate loans, plan your budget around the payment at the first cap, not the teaser rate.
mortgage comparison: FAQ
- What should I compare on a mortgage besides the rate? APR, points, lender fees, closing costs, loan term, whether the rate is fixed, and any prepayment penalty. The cost over the years you'll keep the loan ties them together.
- Are mortgage points worth it? Only if you keep the loan longer than the break-even point, which is the upfront cost divided by the monthly saving. If you might move or refinance soon, usually not.
- Does a mortgage comparison hurt my credit? Comparing offers you already have doesn't. Credit checks for mortgage quotes within a short window are often treated as one inquiry, but ask each lender how they check.
- Can todo.is get me a mortgage? No. It compares offers and finds information with sources. You apply with the lender, and a mortgage adviser or broker can help with your specific case.
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