**Introduction:** The Mortgage Comparison Calculator assists users in comparing the monthly payments of two loans by entering loan amounts, interest rates, and loan terms. It provides a quick overview to help borrowers make informed decisions about financing options.

**Formula:** The calculator uses the loan amount, interest rate, and loan term to calculate the monthly payment for each loan. It employs the standard loan payment formula to determine the monthly payment.

**How to Use:**

- Enter Loan Amount 1, Interest Rate 1, and Loan Term 1 for the first loan.
- Enter Loan Amount 2, Interest Rate 2, and Loan Term 2 for the second loan.
- Click the “Calculate” button to obtain the Monthly Payment for each loan.

**Example:** Suppose Loan 1 has an amount of $200,000, an interest rate of 3.5%, and a term of 15 years. Loan 2 has an amount of $250,000, an interest rate of 4%, and a term of 20 years. Compare the monthly payments using the Mortgage Comparison Calculator.

**FAQs:**

*Why compare monthly payments for loans?*Comparing monthly payments helps borrowers assess the affordability of different loan options.*What role does Interest Rate play in loan comparison?*Interest Rate significantly influences the total cost of borrowing and monthly payments.*How does Loan Term impact monthly payments?*Longer loan terms may result in lower monthly payments but can increase the total interest paid over the life of the loan.*Is the calculator suitable for comparing fixed and adjustable-rate mortgages?*Yes, the calculator can be used for both fixed and adjustable-rate mortgages.*Can I compare more than two loans using this calculator?*No, this calculator is designed for comparing two loans. Additional loans may require a separate comparison.

**Conclusion:** The Mortgage Comparison Calculator simplifies the process of evaluating and comparing the monthly payments of two loans. Users can quickly assess the financial implications of different loan scenarios, aiding them in making well-informed decisions about their mortgage options. For a comprehensive analysis, borrowers are encouraged to consult with mortgage professionals.