Source: American Bankers Association
This tool will help you compare the total cost of any two loans. For example, you could consider the benefit of paying extra points to reduce your interest rate, or choosing a fixed instead of a variable rate loan. Simply enter the desired values for each loan and press compute to see the results. The comparison will assume a worst case scenario. For adjustable rate loans, rates will increase the maximum amount each time the loan re-prices, until it reaches the anticipated rate cap. This analysis includes the effect of a tax deduction for interest. If the interest is not deductible, or if you do not want to show the effect of the tax deduction, choose an income tax rate of zero.