US

How to compare mortgage offers (U.S.)

APR, PITI, and cash-to-close — apples to apples

Comparing mortgage offers by headline interest rate alone is one of the most expensive mistakes first-time U.S. buyers make. This guide shows you how to use three numbers — APR, monthly PITI, and total cash-to-close — to make a true apples-to-apples comparison between lenders, so you pick the offer that actually costs less over time and fits your budget on day one.

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Use one assumption set for every lender

  • Same home price and down payment
  • Same target closing timeline
  • Same credit profile assumptions

Three numbers that matter most

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Quick decision checklist

  1. Compare APR, not just headline rate (from each lender's official disclosures)
  2. Compare monthly PITI, not just principal + interest
  3. Confirm total cash-to-close in writing
  4. Stress test payment for rate/tax/insurance drift

Official resources (U.S.)

CFPB — Owning a Home HUD — Buying a home

Next step (5 minutes)

Take one real lender quote and run it through both tools below before deciding:

Quick FAQ

What should I compare first between two mortgage offers?

Start with monthly PITI and total cash-to-close, then use APR to compare overall cost beyond headline rate.

Why is APR more useful than note rate alone?

APR captures additional financing costs, making offer comparisons more realistic than headline rate by itself.

How do I avoid choosing an offer that breaks my budget later?

Stress-test payment using higher rate, taxes, and insurance assumptions before committing to a lender.

Related guides and templates

Mortgage offer comparison template (APR, PITI, cash-to-close) Closing costs checklist for first-time buyers Offer-to-closing timeline (U.S.) First-time buyer document checklist (U.S.) ARM vs fixed for first-time buyers (U.S.) PMI removal rules for first-time buyers (U.S.) First-time home buyer mistakes to avoid (U.S.)

This guide is educational and not legal or financial advice.