The second consideration is that the term of the loan should be the same. The software will use the same term for all the loans based on the number that is entered in the first field. If the term were different among the various loans, the analysis would not be meaningful because the loan with the longer term would generally result in a lower comparable payment assuming the same loan amount and the same closing costs and origination fees.

If your intention is to hold the loan for a period less than the full term of the loan, you should perform a comparison over your holding period by making use of this application without including discount and origination fees. Divide the discount and origination fees by the holding period in months and add that result to the comparable payment for each loan.