Loans and Financing

What this section covers

A loan comparison is only meaningful when you compare the same thing. Two mortgages quoted at the same rate can differ by tens of thousands over their life, because of how the interest is calculated, what fees are rolled in, how the rate resets, and whether the term is ten or thirty years.

These guides cover mortgages, refinancing, home equity borrowing, auto loans and student loans. Each one breaks the product down into the handful of numbers that actually drive the cost, then shows a worked example so you can see where the money goes rather than taking a rate at face value.

Every calculation shown in these guides is reproduced in the site calculators, so you can substitute your own figures and check the result.

How to use this section

1. 1
   Read the guide for the loan type you are considering before you apply anywhere — the terms you are offered will make far more sense afterwards.
2. 2
   Enter your own numbers in the loan, mortgage, refinance or amortisation calculators to see your true monthly cost.
3. 3
   Compare a shorter term against a longer one on total interest, not just on the monthly payment. The cheaper monthly figure is often the more expensive loan.