Why Small Rate Differences Add Up
A 0.1% difference in mortgage rate sounds trivial, but on a 30-year loan it compounds into thousands of dollars. On a $400,000 mortgage, 0.25% less in rate saves over $20,000 in total interest. This calculator lets you input any rate difference so you can evaluate refinancing opportunities, lender comparisons, and rate lock decisions with hard numbers.
This uses standard amortization (equal monthly payments). Results are estimates — contact your lender for exact figures including fees.
Frequently Asked Questions
Improve your credit score, increase your down payment, buy mortgage points, compare multiple lenders, or consider a shorter loan term. Even a 0.25% difference is worth negotiating for.
A lower rate saves money throughout the entire loan, but the savings are most significant in the early years when the outstanding balance is highest and more interest is accruing.