What to find in the paperwork
Do not compare a complete disclosure with an advertised example. Collect the same fields from each provider and mark a quote incomplete when a required fee, date or payoff term is missing.
A minimum comparison file
- Dated written offer for the same proceeds and term.
- Itemized upfront, recurring and final charges.
- Rate-change, late-payment and early-payoff language.
Ask for a written quote or disclosure for the same amount and term.
Calculate net cash received after deductions.
Calculate total scheduled repayment including recurring charges.
Run an early-payoff case at the date you realistically expect.
Save the assumptions with the quote so later comparisons remain reproducible.
Read the terms that control the cost
Define the amount you need in hand
Start with usable proceeds, not the face value on the note. A fee deducted from funding can leave one quote short of the purchase or debt payoff you intended.
Map every required cash flow
Record the funding date, each payment amount and date, upfront deductions, mandatory memberships, final balloon and any required insurance. Keep optional products in a separate scenario.
Two offers that both say “$20,000 loan”
| Document check | What it changes |
|---|---|
| Item to verify | Offer A sends $19,200 after an $800 fee |
| Item to verify | Offer B sends $20,000 with no fee |
| Item to verify | Both quote 36 payments |
| Item to verify | Only net proceeds reveal whether the amounts are comparable |
| Item to verify | Exit fees can reverse the result for early payoff |
Use the actual disclosure or contract when a charge is conditional.
This decision belongs in The Real Cost of Borrowing. Use APR vs. Interest Rate: Which Cost Belongs in Your Comparison? to check the next assumption, then test the numbers in the Loan Comparison Calculator.
When the new offer replaces several balances, model the full debt-consolidation payoff instead of comparing the new payment alone.
Resolve the remaining contract questions
Read the change rules
For a variable loan, collect the index, margin, reset frequency and caps. For a promotion, record the exact end date and the rate that applies afterward.
Price the exit
Confirm prepayment penalties, unearned-fee refunds, lien-release charges and whether extra payments reduce principal immediately.
Charges that are easy to misclassify
- Comparing monthly payments when terms differ.
- Treating optional add-ons as unavoidable without asking for removal.
- Assuming an advertised range is the rate you will receive.
- Ignoring a balloon because it is outside the monthly payment.
Put the contract numbers on one ledger
Loan Comparison Calculator
Compare offers on the same amount and time horizon, including their different fees.
Questions this decision usually raises
Is APR enough to choose a loan?
No. APR helps normalize certain finance charges, but term, variable-rate risk, optional costs and early payoff can still change the better choice.
Should taxes be included?
Include a tax only if it differs between alternatives or is caused by the financing choice; otherwise show it separately.
What if the lender will not give the fields?
Do not manufacture a comparison. Mark the quote incomplete and ask for the required written disclosure.
Documents and rules to verify
This page explains a calculation, not a personal recommendation. Contract rules and consumer protections vary by product and jurisdiction. Check the current agreement and official guidance before acting.