Sample Loan Officer
Example Mortgage Co.
Loan Options for
Sample Borrower
Interactive comparison prepared by
Sample Loan Officer
Irvine, CA
How long will you keep this loan?
7 years
Quick Reference
Monthly Payment (Yr 7)
$3,130 – $3,844
across these options
Cash to Close
$25,500 – $112,000
across these options
7-Year Total Cost
$234,309 – $280,878
across these options
Covers what you spend to borrow and to own. It leaves out the part of each payment that becomes your equity.
Loan Comparison
★ MY PICK marks the option your loan officer recommends.
Conventional · FIXED
1. 30-yr fixed, 20% down
$500,000 · Irvine, CA
Conventional · FIXED
2. 30-yr fixed, 1 point
$500,000 · Irvine, CA
FHA · FIXED
3. FHA, 3.5% down
$500,000 · Irvine, CA
Side-by-Side Comparison
Take an in-depth look at each loan option.
| Detail | Option 130-yr fixed, 20% down 6.5% | Option 230-yr fixed, 1 point 6.125% · 1.00 pts | Option 3FHA, 3.5% down 30-yr Fixed 6% |
|---|---|---|---|
| Loan Details | |||
| Loan Type | Conventional | Conventional | FHA |
| Purchase Price | $500,000 | $500,000 | $500,000 |
| Loan Amount | $400,000 | $400,000 | $490,944 |
| Term | 30 Years | 30 Years | 30 Years |
| Down Payment | $100,000 | $100,000 | $17,500 |
| Interest Rate | 6.500% | 6.125% | 6.000% |
| APR | 6.526%† | 6.244%† | 6.735%† |
| Points | — | 1.00 ($4,000) | — |
| Loan Payoff Date | Oct 2056 | Oct 2056 | Oct 2056 |
| Financed Fees | — | — | $8,444 UFMIP |
| Monthly Payment | |||
| Monthly P&I (Year 7) | $2,528 | $2,430 | $2,943 |
| Total Monthly Payment (Year 7) | $3,228 | $3,130 | $3,844 |
| Closing | |||
| Closing Cost | $8,000 (incl. prepaids & escrows) | $8,000 (incl. prepaids & escrows) | $8,000 (incl. prepaids & escrows) |
| $108,000 | $112,000 | $25,500 | |
† APR excludes closing costs, which are an estimate here. Including them would raise it.
Cost Over Time
Compare total cost across your selected timeline.
Total cost is what you spend over 7 years: interest, mortgage insurance, property taxes, insurance and HOA, plus closing costs and points less any credits. It leaves out principal, which moves into your equity rather than away from you, and it leaves out your down payment.
Option 1 costs the least for the first 2 years; from year 3 on, Option 2 costs the least.
7-Year Cost Breakdown
| Category | Option 130-yr fixed, 20% down | Option 230-yr fixed, 1 point | Option 3FHA, 3.5% down |
|---|---|---|---|
| Interest | $174,040 | $163,509 | $196,386 |
| Closing Costs | $8,000 | $8,000 | $8,000 |
| Points | — | $4,000 | — |
| Mortgage Insurance | $0 | $0 | $17,692 |
| Taxes + Insurance + HOA | $58,800 | $58,800 | $58,800 |
| Total | $240,840 | $234,309 | $280,878 |
| Saves vs. most expensive | $40,038 less | $46,569 less | — |
Where Your Payment Goes (Year 7)
Monthly payment breakdown at year 7.
| Option 130-yr fixed, 20% down | Option 230-yr fixed, 1 point | Option 3FHA, 3.5% down | |
|---|---|---|---|
| Principal | $566 | $593 | $739 |
| Interest | $1,962 | $1,837 | $2,204 |
| Taxes | $500 | $500 | $500 |
| Insurance | $200 | $200 | $200 |
| MI | $0 | $0 | $200 |
| Total | $3,228 | $3,130 | $3,844 |
| Saves vs. most expensive | $616 less | $713 less | — |
What could this home be worth?
After 7 years, if values grow 3.5% per year — the assumption in this comparison
Illustrative home values, not guaranteed sale proceeds. Mortgage paydown and selling expenses are separate.
What if home values grow differently?
What-if estimates only. The figures above use the assumption in this comparison.
- 0% / yr
- $500,0000%
- 3.5% / yr
- $636,140+27.2%
- 4% / yr
- $657,966+31.6%
PDF downloads use the assumption in this comparison.
Your estimated equity at year 7
Starting equity + loan paydown + estimated appreciation
- Starting equity
- Loan paydown
- Estimated appreciation
Estimated equity at year 7: 30-yr fixed, 20% down, 20% down, $274,475; 30-yr fixed, 1 point, 20% down, $276,788; FHA, 3.5% down, 3.5% down, $196,061. The table below gives the full breakdown.
| At year 7 | Option 130-yr fixed, 20% down | Option 230-yr fixed, 1 point | Option 3FHA, 3.5% down |
|---|---|---|---|
| Starting equity | $100,000 | $100,000 | $9,056 |
| Loan paydown | $38,335 | $40,648 | $50,865 |
| Est. appreciation | $136,140 | $136,140 | $136,140 |
| Total equity | $274,475 | $276,788 | $196,061 |
| Home value | $636,140 | $636,140 | $636,140 |
| Loan balance | $361,665 | $359,352 | $440,079 |
Starting equity is the purchase price less the starting loan balance, including any financed upfront mortgage insurance or funding fee. Figures are rounded.
Illustrative values using 3.5% annual appreciation and scheduled payments. Equity is before selling costs.
Cash to Close Breakdown
Everything due at the closing table for each loan option, line by line.
| Option 130-yr fixed, 20% down 6.5% | Option 230-yr fixed, 1 point 6.125% · 1.00 pts | Option 3FHA, 3.5% down 30-yr Fixed 6% | |
|---|---|---|---|
| Est. Closing Costs | $8,000 · incl. prepaids & escrows | $8,000 · incl. prepaids & escrows | $8,000 · incl. prepaids & escrows |
| ▼︎ Points | $0 | $4,000 | $0 |
| Discount Points | $0 | 1.00 ($4,000) | $0 |
| Down Payment | $100,000 | $100,000 | $17,500 |
| Total Cash to Close | $108,000 | $112,000 | $25,500 |
What if you buy later?
Showing 30-yr fixed, 20% down if you wait 6 months. Prices and rates can move either way — the assumptions below are yours to change.
Buy Now
Buy in 6 Months
Price Increase
$8,675
Payment Change
$191/mo
Lost Equity
$10,874
Total cost of waiting: $70,288How this is calculated
These three cover different spans, which is why the total is bigger than any single figure above it: the interest runs to the day the loan is paid off, the equity covers only the months you wait, and the cash is due once at the closing table. It assumes you keep this loan for its full term, and that prices and rates move exactly as set above.
Red = waiting costs you more. Green = waiting is in your favor.
Extra Payment Accelerator
See how additional monthly payments can shorten your loan and save interest.
Biweekly tip: paying every two weeks is mathematically the same as adding ~$250/mo extra (1/12 of your monthly P&I) — which is where the slider starts. Move it to $0 to see the loan without any extra payment.
$3,478/month — $3,228 payment + $250 extra
$3,380/month — $3,130 payment + $250 extra
$4,094/month at year 7 — $3,844 payment + $250 extra (first year $3,863 + $250)
Tax Advantage
Estimated tax savings from mortgage interest and property tax deductions.
Estimated first-year tax savings
30-yr fixed, 20% down
$3,711/yr
30-yr fixed, 1 point
$3,381/yr
FHA, 3.5% down
$4,464/yr
A bigger tax saving is not a cheaper loan. FHA, 3.5% down shows the largest saving because it pays the most interest — $29,293 in year one against 30-yr fixed, 1 point's $24,367.
Why?
A deduction gives back only your marginal rate, so every extra dollar of interest returns about 22¢ and costs you the other 78¢. Read these figures as a discount on each option's cost, never as a reason to pick the more expensive one.
Details for 30-yr fixed, 20% down
Assumes a 22% federal marginal rate, filing single
Itemizing saves $3,711 more than the standard deduction at your 22% rate.
30-yr fixed, 20% down year by year
| Year | Annual Interest | Est. Tax Savings |
|---|---|---|
| 1 | $25,868 | $3,711 |
| 3 | $25,249 | $3,575 |
| 5 | $24,545 | $3,420 |
| 7 | $23,743 | $3,243 |
SALT cap: $40,000 (2025–2029). Confirm tax rate with your CPA.
