Start with comparable scenarios: the same loan amount, loan type and repayment term, with estimates prepared around the same time. Keep both documents nearby and write down anything that differs.
Still choosing whom to work with? Compare a mortgage broker with a bank and learn how Jay’s lender network fits into the process →
1. Check what you are actually comparing.
Look at the loan amount, term and whether the rate is fixed or adjustable. Check the rate-lock information and expiration. Different structures can make the monthly numbers look better without meeting the same goal.
2. Read the costs alongside the rate.
Compare origination charges, points and lender credits. Ask how each option changes the cash needed upfront and the ongoing cost. Then check third-party charges and ask about material differences.
3. Reconcile the monthly budget.
Compare principal and interest separately from taxes, insurance and other estimated housing costs. A smaller tax or insurance estimate is not evidence of a better loan offer. Ask why the estimates differ.
Build a payment estimate with your own assumptions →
4. Keep cash to close in view.
Compare estimated cash to close as well as closing costs. Flag deposits, credits and prepaid items that differ so Jay can help you understand what is being counted.
5. Compare the outcome at the times that matter to you.
When I review competing quotes, I start with your goal, the cash you want available after closing and how long you expect to keep the loan. Then we compare the rate, points, fees, lender credits, mortgage insurance and repayment structure. I work on your behalf to compare options and help you find the solution that best fits your needs and short- and long-term goals. I explain which option fits your situation and why.
We can compare near-term affordability, your expected payoff date and a longer holding period. At each point, look at the cash paid, borrowing costs and principal balance still owed. Paying down principal builds equity; it should be shown separately from interest and fees. Costs financed into the loan also affect the balance and future interest.
For an initial checkpoint, the Loan Estimate’s page 3 “In 5 years” figures show total payments and principal repaid. Subtracting principal repaid gives the stated five-year interest-and-fee comparison. Your own timeline may be shorter or longer. APR and that five-year figure are useful checks, but neither replaces a comparison built around your plans.
6. Test the tradeoffs before choosing.
Extra upfront costs divided by monthly savings can provide a simple break-even estimate when the loans are otherwise comparable. If the balances, repayment terms or payment structures differ, that shortcut may miss an important tradeoff. I also review the remaining balance, variable-rate exposure, mortgage insurance, any prepayment penalty and the ability to meet your closing date. A future refinance is a possibility, not an assumption that makes an otherwise unsuitable loan work.
Keep the cash-to-close comparison separate from borrowing cost: down payment, prepaid items and escrow deposits affect the cash you need, but they are not all lender fees. We reconcile the differences before deciding which quote is better for your goals.
Comparing a HELOC or second mortgage?
Compare the same amount of cash you need over the same repayment timeline. Include upfront and ongoing fees, both mortgage payments, interest, and the balance you would still owe. Keeping your first mortgage does not automatically mean a lower total cost.
For a HELOC, ask about required initial draws, how the rate can change, the draw and repayment periods, and how payments could change. Use the lender’s applicable disclosures rather than assuming every product uses the same Loan Estimate form. Your home secures the debt.
The calculator below compares fixed-rate, fully amortizing loans. It does not model HELOC draws, variable rates or interest-only periods. Ask Jay for a comparison appropriate to your actual loan structures.
Review my equity borrowing costs ↗
Learn more: CFPB: home equity loans and HELOCs.
Bring these questions to your review.
- Are these offers based on the same loan amount and term?
- Is either rate locked, and through what date?
- What is included in the lender’s charges?
- Which costs are estimates that may change?
- How long do I expect to keep this loan, even if I stay in the home?
- What would I have paid and still owe at my expected payoff date?
- What changes if I keep the loan longer than planned?
- How much cash should remain available after closing?
Have an offer you want to understand?
Schedule a conversation and mention that you want to compare Loan Estimates. Jay can arrange an appropriate way to review your documents. Do not send account numbers, Social Security numbers or financial documents through ordinary text or email.
Discuss my loan comparison ↗Educational guidance, not a promise of lower costs or loan approval. Sources: CFPB: compare loan offers and Loan Estimate explainer.
Put two offers side by side.
See how the rate, loan costs, repayment term and remaining balance affect the comparison over your timeline.
Use the loan comparison calculator →