Compare Your Loan Offers
Enter up to three offers. We’ll calculate monthly payment, 5‑year cost, and life‑of‑loan cost—then the AI will explain the trade‑offs.
Loan Offer #1
Loan Offer #2
Loan Offer #3
Results
Compare Your VA Loan Offers (from Loan Estimates)
Use your official Loan Estimates to compare up to three VA loan offers side‑by‑side. Enter the interest rate, APR, closing costs, lender credits, and term; our calculator shows monthly payment, five‑year cost, and life‑of‑loan cost. See how points or credits change the math, and understand trade‑offs clearly before locking your rate.
- Enter numbers from the Loan Estimate only; it standardizes fees and terms across lenders.
- Compare both the interest rate and the APR to see payment impact and true borrowing cost.
- Include lender credits and discount points; they trade upfront cost for a different rate.
- VA funding fee can be financed; verify whether you qualify for an exemption first.
- Results show principal‑and‑interest only; taxes, insurance, and HOA dues are not included.
Mini FAQ
Do I need three offers to use this tool?
No. You can compare one or two Loan Estimates now and add another later. The model normalizes fields so each offer lines up the same way, letting you see payment, five‑year cost, and life‑of‑loan cost without re‑entering prior data.
Why does APR matter if I like the lowest rate?
The interest rate drives the monthly principal‑and‑interest payment, while APR wraps most finance charges into a yearly rate. APR helps you judge the total cost of borrowing when fees differ, so a slightly higher rate could still be cheaper overall.
Are lender credits always a good deal?
Credits reduce your cash to close but typically require accepting a higher interest rate. That can raise payments and the five‑year cost. The best choice depends on how long you expect to keep the loan and your short‑term cash priorities.
Key Takeaways
- Always compare the interest rate and the APR to capture the true borrowing cost.
- Use Page 2 of the Loan Estimate to confirm lender fees, points, and third‑party charges.
- Account for lender credits; they usually trade higher rates for lower upfront closing costs.
- Include the VA funding fee correctly; some borrowers are exempt from paying this charge.
- Standardize loan amount, term, and lock timing so offers reflect the same market conditions.
- Check Cash to Close and five‑year cost to judge near‑term budget impact and trade‑offs.
How do I compare VA loan offers using Loan Estimates?
Collect Loan Estimates from at least two VA‑approved lenders and standardize the basics. Use the same property type, loan amount, term, and lock timing. Focus on the interest rate, the APR, each closing‑cost category, and lender credits. Enter those numbers to see monthly payment, five‑year cost, and life‑of‑loan trade‑offs clearly.
- Base your inputs only on the Loan Estimate (LE). The LE aligns disclosures across lenders so fees, credits, and rate quotes are presented in a consistent format, which prevents “gotchas” that often appear in informal worksheets or marketing emails.
- Keep variables constant when shopping. A fair comparison requires the same loan amount, occupancy, term, and rate‑lock period; otherwise, changes in market pricing or terms can hide true cost differences between competing lender offers.
- Use APR to check the reality behind a tempting rate. A lower rate with very high fees usually produces an APR that signals the deal is more expensive once you include finance charges beyond the interest rate alone.
- Compare our monthly payment output to your budget, remembering that taxes, insurance, and HOA dues are separate. Focusing on principal‑and‑interest clarifies how rate and points trade off against closing credits from the lender.
- Use the five‑year cost to evaluate near‑term plans. If you expect to sell or refinance within several years, a slightly higher rate with strong credits can be cheaper than paying points for a lower rate you will not keep long.
- Review life‑of‑loan cost for long‑term scenarios. When you plan to keep the home and loan for many years, reducing the rate without overpaying in points often produces the lowest total interest paid over time.
- Gather current LEs from each lender the same day if possible, then confirm the loan amount, term, property use, and lock period are identical. This prevents market movement or term differences from skewing results across competing offers.
- Enter interest rate, APR, total closing costs, and lender credits exactly as shown on the LE. If a lender quotes “points,” convert to dollars using the loan amount so you consistently capture every fee in total costs.
- Analyze monthly payment, five‑year cost, and life‑of‑loan cost. Adjust points or credits to see the break‑even, then shortlist two offers that best fit your budget, timeframe, and cash‑to‑close comfort level.
| Calculator Field | Where It Appears on the LE | Notes |
|---|---|---|
| Loan Amount | Page 1 — Loan Terms | Use the financed amount if the VA funding fee is rolled into the loan. |
| Interest Rate | Page 1 — Loan Terms | This drives principal‑and‑interest payment; confirm if the quote is locked. |
| APR | Page 3 — Comparisons | Reflects interest plus most finance charges as a yearly rate. |
| Total Closing Costs | Page 1 — Costs at Closing | Should equal the sum of Page 2 Sections A, B, and C; verify lender math. |
| Lender Credits | Page 1 — Costs at Closing | Credits reduce cash to close but usually raise the rate. |
| Loan Term (Years) | Page 1 — Loan Terms | Commonly 30 or 15 years; keep this identical across lenders. |
For a primer on what the Loan Estimate is and how to use it for shopping, the Consumer Financial Protection Bureau provides plain‑language guides that outline each page and comparison tips for borrowers.
CFPB: What is a Loan Estimate and CFPB: Loan Estimate Explainer.
What’s the difference between interest rate and APR on a VA loan?
The interest rate sets your monthly principal‑and‑interest payment; APR wraps most finance charges into a yearly rate. APR lets you compare offers with different fees fairly. A lower interest rate doesn’t guarantee the cheapest loan once fees, points, and credits are considered.
- The interest rate affects affordability month to month. Small rate changes meaningfully alter payments, so use the calculator to visualize how a higher credit today may trade for a slightly higher payment tomorrow.
- APR is typically higher than the interest rate because it includes certain finance charges. Comparing APRs helps surface offers that rely on heavy upfront fees to advertise an eye‑catching but misleadingly low rate.
- APR excludes some items like escrow deposits and certain third‑party charges. That is why you should use APR and the itemized closing costs together rather than relying on a single metric in isolation.
- Never compare APRs across different loan types or terms. APR assumes you keep the loan for the full term; if you plan to refinance or sell sooner, examine five‑year cost and monthly payment alongside APR.
- Beware of “no‑cost” marketing. Lender credits reduce your cash to close but usually come with a higher rate, which can increase total interest over your expected holding period if you keep the loan long enough.
- If an APR looks unusually high relative to the rate, scrutinize discount points, origination fees, and any add‑ons. Large points or fees can outweigh the benefit of a small reduction in the nominal interest rate.
- Compare the interest rate and APR for each offer, then flag outliers where the gap is much larger than competitors. That often signals heavy fees or points embedded in the pricing strategy.
- Use the five‑year cost to test whether a higher‑credit, higher‑rate option is actually cheaper for your expected timeframe. This prevents overpaying up front when you will not keep the loan long.
- Prioritize the combination that fits your budget and horizon: sustainable monthly payment, fair APR versus peers, and closing costs aligned with your available cash and comfort level.
For a clear definition of APR and how it differs from the interest rate on mortgages, see the CFPB’s consumer education material.
Which fees on Page 2—Boxes A, B, and C—matter most?
Start with Box A (Loan Costs) because it contains the lender’s own charges; then review shoppable and non‑shoppable third‑party fees in Boxes B and C. Confirm whether discount points are included, and check for duplicate or padded items that inflate total costs.
- Box A shows origination, underwriting, processing, and any discount points. The VA allows a flat 1% lender origination charge in most cases, which helps cap lender fees compared with other loan types when you shop.
- Box B includes services you cannot shop for, like the appraisal and certain lender‑selected reports. These are typically similar across lenders, so large differences elsewhere often point to Box A or optional points.
- Box C lists services you can shop for, primarily title and settlement. If a lender’s estimate is high here, request their written provider list and compare quotes; you choose the provider in many markets.
- Confirm that total closing costs on Page 1 equal the sum of A+B+C on Page 2. If they do not match, ask the lender to reconcile the numbers so you are comparing each offer on the same, accurate basis.
- Identify whether the lender is using discount points to present a lower rate. Points are optional; if you will not keep the loan long, paying points may not be cost‑effective despite the attractive quoted rate.
- Evaluate title fees separately from premiums when possible. Some providers bundle line items differently, so request a standardized quote to avoid apples‑to‑oranges comparisons that hide higher settlement charges.
- Sum Boxes A, B, and C for each offer, then subtract any lender credits to understand your net cost. Put the results into the calculator so five‑year and lifetime cost comparisons reflect the entire fee picture.
- Ask the lender to itemize Box A if it only shows a single “origination” line. Transparency makes it easier to negotiate or to compare similar services across multiple lenders competing for your business.
- For Box C, obtain at least two independent title/settlement quotes using the same loan details. Provide the LE fields so vendors price consistently, then revisit lenders with documented savings if you choose a lower‑cost provider.
| Cost Category | Negotiable or Set? | Notes |
|---|---|---|
| Lender origination | Capped/negotiable | VA permits a flat 1% origination charge in most cases; you can negotiate within the cap. |
| Discount points | Optional/negotiable | Paying points lowers the rate; weigh cost against expected time in the loan. |
| Appraisal | Set by VA schedule | Fee is established by VA; generally similar regardless of lender selection. |
| Title/settlement | Shoppable | Obtain quotes; provider choice can meaningfully change your Box C total. |
| Recording and taxes | Set by locality | Government charges vary by county or state; lenders do not control them. |
| VA funding fee | Set by statute | May be financed or paid at closing; some borrowers are exempt. |
Page‑by‑page Loan Estimate explainers from the CFPB clarify which fees are shoppable, while VA guidance outlines allowable lender charges and the origination cap for VA loans.
CFPB: Loan Estimate Explainer and VA: Funding fee and closing costs.
How do lender credits and discount points change my costs?
Credits reduce upfront cash but usually require a higher rate; points increase upfront cost to lower the rate. The right choice depends on your holding period and cash‑to‑close comfort. Calculate the break‑even to see when points begin saving money.
- Lender credits often cover part of your Box A or C fees. They can be attractive when cash is tight, but the higher rate may push five‑year cost above an offer with fewer credits and a lower interest rate.
- Discount points are prepaid interest. One point equals one percent of the loan amount; paying points only makes sense if monthly savings after the lower rate outweigh the upfront cost before you sell or refinance.
- Use our five‑year view to avoid over‑optimizing for a lifetime you will not keep. A modest credit today may be rational if you expect a move or refinance well before a point‑based break‑even arrives.
- Break‑even guide: divide the cost of points by the monthly payment reduction to estimate months to recoup. If that timeframe exceeds your expected time in the loan, paying points is unlikely to be economical.
- Confirm whether the quoted rate with credits remains competitive against other lenders’ no‑point options. Sometimes a lower‑fee lender without credits still beats a credit‑heavy quote once APR and five‑year cost are compared.
- Ask for side‑by‑side scenarios from each lender: zero‑point, one‑point, and a moderate‑credit option. Standardizing scenarios speeds negotiations and reveals who prices more efficiently across different structures.
- List each offer’s points (in dollars) and lender credits. Enter them so total costs reflect the chosen structure, then scan APR and five‑year results to flag which design matches your expected holding period.
- Compute a simple break‑even: points paid divided by monthly savings from the lower rate. If the result is longer than you will keep the loan, avoid points and consider a lower‑fee or credit‑assisted alternative.
- Request revised LEs with your preferred structure from top contenders. With matched scenarios, you can negotiate fees or pricing more effectively and choose the option that balances cash and payment.
For consumer definitions and trade‑off guidance on discount points and lender credits, the CFPB offers a detailed explainer.
CFPB: Discount points and lender credits.
How is the VA funding fee handled and who is exempt?
The VA funding fee is a one‑time charge that may be financed or paid at closing. The percentage depends on your use of benefits and down payment. Certain Veterans and surviving spouses with qualifying circumstances are exempt; verify status early to avoid over‑collecting cash.
- If you finance the funding fee, your loan amount increases and so do payment and total interest. Paying it in cash keeps the balance lower but requires more funds at closing; compare both paths in our tool.
- The VA recognizes exemptions for many borrowers with service‑connected disability compensation and certain other cases. Confirm eligibility documentation early so the lender issues an accurate LE and, later, a correct Closing Disclosure.
- Sellers can contribute toward closing costs within VA limits, but the funding fee itself is your responsibility unless exempt. Keep credits and concessions separate from funding fee calculations to avoid confusion in negotiations.
- When exempt, ask lenders to refresh the LE immediately. Removing the fee reduces cash to close and APR. Re‑running offers without the fee ensures your comparison remains fair and reflects true, final cash requirements.
- If not exempt, decide whether to finance based on your horizon and budget. Financing preserves cash now but raises five‑year and lifetime costs; paying upfront lowers interest expense if funds are comfortably available.
- Double‑check that the correct fee category (first use vs. subsequent use, and down payment tier) is applied. Category changes can significantly alter totals, so accuracy matters before you commit to a lender.
- Confirm exemption status with your lender using VA documentation. If exempt, ensure the LE shows a zero funding fee and that totals, APR, and cash to close update accordingly before you proceed.
- Model finance‑versus‑pay scenarios in the calculator. Note how a higher balance affects monthly payment and five‑year cost, then choose the path that best fits your cash availability and time horizon.
- Before locking, ask the lender to show your final LE with the correct funding fee line. That prevents last‑minute Closing Disclosure surprises and keeps your comparison consistent from quote to closing.
VA explains who pays the funding fee, exemption categories, and how closing costs work for VA loans. Appraisal processes and fees are also detailed in official guidance for borrowers and appraisers.
VA: Funding fee and closing costs and VA: Appraisals overview.
How do “Cash to Close” and “TIP” help me judge affordability?
Cash to Close shows funds needed at settlement; TIP (Total Interest Percentage) estimates total interest over the loan term. Use Cash to Close for near‑term budgeting and TIP for long‑term context, alongside APR and our five‑year view to balance competing goals.
- Cash to Close reflects down payment, closing costs, credits, and any financed items. It tells you how much money you must bring, which is crucial if you have competing short‑term priorities like reserves or repairs after move‑in.
- TIP estimates the percentage of the amount you will pay in interest over the life of the loan. It is not a shopping tool by itself but adds perspective on how rate changes ripple across total interest paid.
- Combine the metrics. A lower Cash to Close might raise monthly payment and TIP; a higher upfront cost could reduce long‑term interest. The best fit depends on your timeline, budget flexibility, and expected home tenure.
- Check that credits, down payment, and any financed funding fee are correctly reflected. Errors in those entries often explain mismatches between Cash to Close on Page 1 and the itemization on Page 2.
- Use our five‑year cost as a reality check if you anticipate life changes. When timing is uncertain, avoiding heavy points preserves flexibility without locking in high upfront costs that require a long break‑even.
- Before closing, compare the Closing Disclosure to your last LE. You want stable totals and explanations for any shifts; documented changes help you decide whether to proceed or renegotiate before signing.
- Enter accurate credits, prepaid items, and the funding fee choice (financed or paid) to align Cash to Close with your plan. Revisit lender quotes if your budget requires a specific cash target at settlement.
- Review TIP and five‑year cost together to understand trade‑offs across time horizons. Favor the mix that protects monthly affordability while avoiding unnecessary lifetime interest where possible.
- Before signing, verify your Closing Disclosure matches expectations. Ask for written explanations if any item differs from the LE, then rerun the numbers in the calculator to confirm comfort with the final figures.
The CFPB explains TIP and the Closing Disclosure so borrowers can interpret both short‑ and long‑term measures effectively when evaluating mortgage offers and final terms before settlement.
CFPB: Total Interest Percentage (TIP) and CFPB: Closing Disclosure.
How can I use competing offers to negotiate a better VA deal?
Use written LEs to ask lenders to match or beat pricing. Present apples‑to‑apples scenarios, point out Box A differences, and be clear about whether you prefer lower cash to close or a lower rate. Request updated LEs to memorialize improvements.
- Lead with transparency: share the competing LE page showing rate, points, and credits. Many lenders can adjust secondary‑market pricing or offset fees when they see credible documentation from another VA‑approved competitor.
- Negotiate economics, not jargon. Ask how much the rate improves if you accept fewer credits, or how much credits can increase if you accept a small rate bump. Re‑run both options with our five‑year view before deciding.
- Confirm timelines. If a lender needs you to lock today to honor pricing, ask about lock extensions and written cost caps. Documented promises reduce the risk of last‑minute changes that erode negotiated savings.
- Standardize three scenarios for each lender: zero‑point, moderate credit, and lowest‑APR within your cash limits. Side‑by‑side LEs make it easy to compare and prevent confusion from customized quotes that obscure trade‑offs.
- Ask for a fee‑free reprice if market rates improve before closing. Some lenders offer a one‑time float‑down; understand rules early so you can benefit if pricing moves in your favor during the process.
- Track every revision. Keep PDFs of each LE and your final Closing Disclosure so you can verify stability and hold parties accountable if something changes without a valid, disclosed reason.
- Email the loan officer a redacted copy of the competing LE with a simple request: “Match or beat this APR with similar cash to close, or offer a better credit for a slightly higher rate.”
- When you receive counteroffers, enter the updated rate, APR, and credits. Compare five‑year and lifetime costs again to ensure the “win” is real for your expected holding period.
- Ask for an updated LE reflecting any agreed terms before you lock. A clean paper trail helps ensure the Closing Disclosure mirrors what you negotiated and protects you from surprise charges later.
For objective shopping support, the CFPB’s tools help borrowers compare lender pricing and rate movements by location and credit characteristics, reinforcing a disciplined, side‑by‑side approach to negotiation.