Mortgage Interest Rates Calculator for
Comparing Finance Costs

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Attempts to dispel the myth that a home loan is "good debt," and helps you to compare the payments and costs of up to four lending rates at one time.

This free online Mortgage Interest Rates Calculator will calculate a comparison of mortgage rate costs for up to four home loans.

Plus, unlike other online compare mortgage rate calculators, the mortgage interest rates calculator on this page will also calculate how many years of your life you will need to spend working in order to earn the after-tax, after-work-related-expense income needed to pay just the finance charges on your home loan.

Is a Home Loan a "Good" Debt?

Well, that's certainly what banks and mortgage companies want you to believe. After all, they profit greatly from spreading the belief that borrowing money to purchase a home is "good" debt. In fact, they even have a lot of so-called, "financial experts," on board helping them to spread that belief.

One reason financial experts give as to why a mortgage is a type of "good" debt, is because if for some reason you can no longer afford to make the payments you can pay the loan off simply by giving the home back to the mortgage company. I can't help but wonder what those same financial experts are telling clients who are now upside down in their mortgages (market value of home dropped to well below what they owe on the home) and have lost their jobs.

Borrowing is ... Living Beyond Your Means

The truth is, no matter how you slice it, borrowing money to purchase something that doesn't generate a payment-offsetting income is an act of living beyond your means (spending more than you earn). And what does "living beyond your means" mean? It means that you become a slave to lending institutions, and it means that you will have to work twice as many hours to buy the same basket of goods as someone who pays cash for everything they buy.

Borrowing is ... Painting Yourself Into a Corner

When you take on financial obligations you simultaneously reduce your freedom of choice. And the more you reduce your freedom of choice, the more you end up trapped where you're at -- trapped in your vocation, trapped in your present job, trapped where you live, trapped at home instead of vacationing abroad, trapped, trapped, trapped.

Borrowing is ... Working Twice as Hard for the Same Result

The second negative consequence of taking on financial obligations (borrowing earnings from your future to live better today) is that you will have to pay back more money than you borrowed (principal PLUS interest). And the higher the interest rate and longer the repayment term, the more money you will spend to purchase the otherwise fixed-price item.

If you buy a $250,000 home using a 30-year, 6% mortgage, by the time you make the final payment you will have paid $540,000 for the $250,000 home. How on earth could that be a "good" thing? Especially when you consider how many hours of your life you will need to spend working (loss of freedom) in order to pay the extra $290,000 for the home.

The mortgage interest rates calculator on this page will attempt to show you how much of your future earnings (freedom) you will be giving up in the process of paying 2-3 times the price of a home.

If you want to live free in "the land of the free," then do the opposite of what lending institutions are telling you in their sales presentations, the opposite being; grow slow, pay as you go.

With that, let's use the Mortgage Interest Rates Calculator to calculate the comparison of mortgage rate costs for up to 4 different mortgage rates.

Calculate Mortgage Rates Cost Comparison
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Instructions: Enter the mortgage amount, the loan term in number of years, and your real hourly wage (optional).

Next click the "Calculate Mortgage Rates Comparison" button to begin the comparison.

Selecting rates from the scrollable menus will automatically recalculate the results.

Mouse over the blue question marks for a further explanation of each entry field. More in-depth explanations can be found in the glossary of terms located beneath the Mortgage Interest Rates Calculator.

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Mortgage Interest Rates Calculator Glossary of Terms

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Mortgage amount: The dollar amount of the mortgage (home loan amount, or principal). This entry is required for the mortgage interest rates calculator to complete its calculations.

Home loan term in number of years: The home loan term in number of years (15, 20, 25, and 30 years are common loan terms). This entry is required for the mortgage interest rates calculator to complete its calculations.

Real hourly wage: If you would like the mortgage interest rates calculator to calculate the number of hours you will have to work to just to pay the mortgage interest charges, enter your real hourly wage in this field. If you don't know your Real Hourly Wage, be sure to visit the Real Hourly Wage Calculator.

Rates: Select a comparison rate for each column. The mortgage interest rates calculator will automatically recalculate each time you change any one of the selected rates (provided you have entered a mortgage amount and loan term).

Rate result row: Each column in this row is simply a copy of the rate selected in the corresponding scrollable rates menu.

Payment result row: Each column in this row will contain the monthly mortgage payment that corresponds to the selected interest rate. As you will discover when using the mortgage interest rates calculator, the longer the loan term the lower the payment but the higher the finance cost, and the shorter the loan term the higher the payment but the lower the finance cost.

Total result row: Each column in this row will contain the total of all monthly mortgage payments (principal plus interest) for each corresponding selected interest rate.

Interest result row: Each column in this row will contain the total interest cost you will end up paying if you choose to finance the mortgage at the selected interest rate.

Work yrs result row: If you entered your real hourly wage in the top portion of the mortgage interest rates calculator, each column in this row will show the number of years you will need to work in order to earn the after-tax, after-work-related-expense income needed to pay just the interest charges on the mortgage. The mortgage interest rates calculator arrives at this figure by dividing the total interest cost by your real hourly wage, and then dividing that results by 2,080 hours (52 weeks x 40 hours per week).

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