Mortgage Comparison Spreadsheet: How to Compare Loan Offers Side by Side

You've got three Loan Estimates sitting on your desk from three different lenders. One has the lowest rate. One has the lowest fees. One has the lowest monthly payment. None of them are the same loan. Choosing the wrong one could cost you thousands — and most buyers pick based on the number their eyes land on first.

A proper mortgage comparison doesn't start with monthly payments. It starts with total cost over your expected holding period.

Why Monthly Payment Comparisons Miss the Point

Lenders can present the same economic deal in many ways. A low advertised rate might come with $4,000 in points. A higher rate might have zero fees. The monthly payments look different, but the total cost over 5 years may be identical — or the "lower payment" option may cost more.

The comparison that matters is: how much will this loan cost me in total over the time I plan to hold it?

This requires looking at:

1. Total closing costs (origination, points, appraisal, title, etc.)
2. Monthly payment at the quoted rate
3. Rate on which cost scenario applies (varies by credit score and LTV)
4. Annual Percentage Rate (APR) — the true rate including fees
5. Total cost over your expected holding period (not just monthly payment)

The Five Columns Every Comparison Should Include

Build your spreadsheet with one row per loan offer and at least these columns:

Worked Example: Three Loan Offers

Loan amount: $350,000, 30-year term, same credit profile.

5-year total: Lender C wins (lowest total cost for a 5-year hold) 10-year total: Lender C still wins 30-year total: Lender A wins (rate paid off points by year 12)

The conclusion changes based on your holding period. If you plan to stay 5 years, Lender A with its heavy points is the worst option — you never recoup the upfront cost. If you stay 30 years, Lender A's lower rate eventually overtakes the other offers. Lender C wins in most realistic holding periods (5–15 years).

APR vs. Interest Rate: Which to Compare

The Annual Percentage Rate (APR) is the interest rate restated to include lender fees and points amortized over the full loan term. It's a useful single-number comparison — a higher APR than interest rate means the loan has significant fees.

APR is most reliable for comparing loans with identical terms (same type, same duration). Use it as a starting screen — not as a replacement for total cost analysis over your expected holding period.

On a Loan Estimate, APR is disclosed in box 1 on page 3. Always compare APR across lenders on the same day or same-week, since rate movement affects both the quoted rate and APR.

What to Include in Closing Costs for a Fair Comparison

Not all closing costs are lender-controlled. Some are third-party costs that are roughly similar across lenders:

• Title insurance and title search
• Government recording fees
• Survey fees
• Prepaid interest (1st payment timing)
• Escrow prepaids (property tax and insurance prepaid at closing)

The costs that vary meaningfully by lender:

• Origination fee
• Points (discount points)
• Application fee
• Underwriting fee
• Rate lock fee

When comparing offers, exclude the third-party costs that will be approximately equal regardless of lender — focus the comparison on the lender-variable costs.

The Points Break-Even Column

Add a break-even column to your spreadsheet:

Points Break-Even (Months) = Points paid (dollars) ÷ Monthly payment savings vs. no-points loan

Using the Lender A vs. Lender B comparison:

• Points paid by Lender A: $7,000
• Monthly payment savings: $2,270 − $2,184 = $86/month
• Break-even: $7,000 ÷ $86 = 81 months (6.75 years)

If you stay in the loan beyond year 7, Lender A's points pay off. If you sell, move, or refinance before year 7, Lender A's $7,000 was a net loss.

UK, AU, CA: The Same Framework, Different Inputs

United Kingdom: UK buyers compare "product fees" rather than points. A £999 product fee on a 5-year fixed at 4.50% vs. £0 fee on 4.67% follows the identical break-even logic. However, the relevant holding period is the fixed-rate term (2 or 5 years), not the full 25-year mortgage — UK buyers remortgage at the end of each fixed period.

Canada: Canadian fixed mortgages typically don't involve points. Lenders compete on rate and cashback offers. The comparison columns stay the same — just remove the points field and add any cashback as a negative cost. Note: Canadian mortgages use semi-annual compounding, so the actual payment will differ from US-formula estimates at the same nominal rate.

Australia: Australian borrowers compare variable and fixed rates plus ongoing fees (account-keeping fees, package fees). Some lenders charge $300–$400/year in package fees in exchange for rate discounts — include these in your annual cost column.

Requesting Comparable Loan Estimates

In the US, lenders must provide a standardized Loan Estimate within 3 business days of receiving an application. The Loan Estimate form is specifically designed to make comparison easier — look at Section A (Origination Charges), Section B (Services You Cannot Shop For), and Section C (Services You Can Shop For).

For a proper comparison, you must apply to multiple lenders within a 14-45 day window. Multiple mortgage inquiries within that window are treated as a single credit pull by FICO's scoring model, so shopping multiple lenders does not materially harm your credit score.

The Mortgage Math & Affordability Calculator Toolkit includes a ready-to-use mortgage comparison worksheet with all columns pre-built — enter your loan estimates and immediately see total cost at 3, 5, 10, and 30 years, break-even on points, and APR comparison — so you can make an informed choice among competing offers in under 15 minutes.