Loan Comparison

Compare loan options with full total-cost analysis. Goes beyond monthly payment to reveal the true cost including fees, interest, and opportunity cost over the full loan term.

Usage

Provide the loan offers you're comparing: amounts, interest rates, terms, fees, and any special conditions. The skill produces:

• Monthly Payment Comparison: Principal and interest breakdown
• Total Cost Analysis: Total interest paid plus all fees over the loan life
• Amortization Schedule: Year-by-year principal vs interest breakdown
• APR Calculation: True annual cost including fees
• Prepayment Analysis: Impact of extra payments on total interest and payoff date
• Refinancing Break-Even: How long until refinancing savings exceed closing costs
• Scenario Comparison: Side-by-side analysis of all options

Examples

1. Mortgage: "Compare 30-year fixed at 6.5% vs 15-year fixed at 5.75% for a $400K home loan. Include PMI for less than 20% down. Which saves more long-term?"

1. Auto Loan: "Compare: dealer financing at 4.9% for 60 months vs credit union at 3.5% for 48 months vs paying cash. Car price: $35K. I have $35K earning 5% in savings."

1. Student Loans: "Compare federal loan consolidation at 5.5% fixed vs private refinancing at 4.2% variable. Total balance: $60K. Should I give up federal protections?"

1. Business Loan: "Compare an SBA loan at 7% for 10 years vs a business line of credit at 9% with flexibility. Need: $200K for equipment purchase."

Guidelines

• Always compare total cost of borrowing, not just monthly payments — longer terms cost more total
• Include ALL fees: origination, application, closing costs, prepayment penalties
• Calculate the effective APR to compare apples-to-apples across loans with different fee structures
• Show the impact of making one extra payment per year (significant interest savings)
• For variable rate loans, model scenarios at current rate, +2%, and +4%
• Consider opportunity cost: could the money earn more invested than the loan interest rate?
• Factor in tax deductibility where applicable (mortgage interest, student loan interest)