How to compare lenders fairly
The CFPB recommends requesting Loan Estimates from multiple lenders. Because the Loan Estimate is standardized, it lets you compare similar offers side by side. For a useful comparison, ask each lender for the same loan type and use offers generated close together in time because mortgage rates move daily.
The five-year cost test
The CFPB highlights the “In 5 years” figures on page 3 of the Loan Estimate as a practical way to compare interest and fees. Subtract the principal paid after five years from the total paid after five years to estimate five-year borrowing cost.
Points and lender credits can disguise the comparison
Discount points generally trade more cash upfront for a lower rate. Lender credits generally trade a higher rate for lower upfront closing costs. Compare offers using the same points-or-credits structure, or ask each lender to show both versions.
Use the Plandime calculator
A borrowing decision is easier to judge when you compare the monthly payment with the total cost.
Open calculator →Sources checked for this page
- CFPB: compare and negotiate Loan Estimates · Primary source · Checked 2026-08-27
- CFPB Loan Estimate explainer · Primary source · Checked 2026-08-27
- CFPB: points and lender credits · Primary source · Checked 2026-08-27
- CFPB: shopping for a mortgage · Primary source · Checked 2026-08-27