Help me evaluate a mortgage decision using only the figures and terms I provide. I understand this is educational planning support, not mortgage, legal, tax, or financial advice; tell me when I should confirm an issue with a licensed loan officer, housing counselor, attorney, or tax professional. My goal: [MORTGAGE GOAL] Property and borrower context: [BORROWER CONTEXT] Loan option A: [LOAN OPTION A] Loan option B or alternative: [LOAN OPTION B]
Costs, cash, and timing constraints: [COSTS AND CONSTRAINTS]
Ask up to 3 clarifying questions only if a required input is missing. Then provide:
1. A side-by-side table of loan amount, rate, APR if supplied, term, amortization, points or credits, monthly principal and interest, estimated escrow if supplied, mortgage insurance, total monthly housing payment, cash to close, and lender credits. Mark any item that cannot be calculated from my data.
2. A plain-English comparison of the tradeoffs, including fixed versus adjustable-rate exposure, prepayment or refinance assumptions, and how long I would need to keep the loan for upfront points to break even. Show the break-even formula and do not calculate it if required costs are absent.
3. A closing-cost review that separates recurring charges, prepaid items, lender fees, third-party fees, and cash due at closing.
4. A concise list of questions to send the lender, focused on rate-lock expiration, float-down terms, ARM caps, mortgage-insurance cancellation, assumptions, and which Loan Estimate fields may change.
Do not claim a loan is affordable based only on payment. Flag debt-to-income, reserves, property taxes, insurance, HOA dues, rate-lock, and underwriting items that need verification. Before answering, check that APR is not treated as the interest rate and that monthly payments use the stated loan balance, rate, and term.Fill in
| Placeholder | What to enter | Example |
|---|---|---|
| [MORTGAGE GOAL] | State what you are deciding, such as choosing between two offers, refinancing, or estimating a purchase budget. | Choose between two 30-year fixed purchase-loan offers. |
| [BORROWER CONTEXT] | Provide the property price, down payment, occupancy, state, expected time in the home, and relevant constraints. | $485,000 condo in Raleigh, NC; 15% down; primary residence; likely stay 7 years. |
| [LOAN OPTION A] | Paste the first loan’s amount, rate, term, loan type, points, APR, mortgage insurance, and quoted payment details. | $412,250 conventional 30-year fixed, 6.375%, 0.75 points costing $3,092, APR 6.61%, PMI $118/month. |
| [LOAN OPTION B] | Paste a second offer or an alternative such as waiting, making a larger down payment, or renting. | $412,250 conventional 30-year fixed, 6.625%, lender credit $2,100, APR 6.79%, PMI $118/month. |
| [COSTS AND CONSTRAINTS] | Provide closing costs, available cash, taxes, insurance, HOA dues, rate-lock dates, and budget limits. | Estimated taxes $310/month, insurance $92/month, HOA $285/month, $92,000 available for down payment and closing. |
How to use
- Paste the prompt with the exact figures from each Loan Estimate or lender worksheet.
- Ask the lender for missing points, credits, mortgage-insurance, and lock details before accepting a comparison.
- Check calculated payment fields against the official Loan Estimate; escrow and fees can vary by property and closing date.
- Follow up with: “Draft a neutral email asking both lenders to confirm the five fields that could change before closing.”
Variations
Loan Estimate review
Use when you have a Loan Estimate and want to prepare lender questions.
Review this Loan Estimate text: [LOAN ESTIMATE]. Explain the loan terms, projected payments, costs at closing, cash to close, and services I can shop for in plain language. Separate lender charges, third-party charges, prepaids, and initial escrow. List discrepancies or ambiguous entries as questions for the lender; do not call them errors without evidence. Do not give legal or lending advice. Self-check that rate, APR, and total interest percentage are described as different measures.Refinance decision
Use when comparing a refinance with keeping your existing mortgage.
Compare keeping my current mortgage with this refinance offer. Current loan: [CURRENT LOAN]. Refinance offer: [REFINANCE OFFER]. Expected time in home: [TIME HORIZON]. Calculate payment change and simple closing-cost break-even only from supplied figures; include cash-out, term reset, mortgage-insurance, and rate-lock implications. Present a table and a lender-question list. Do not assume home value, tax treatment, or future rates. Flag information a licensed professional should confirm.
First-time buyer plan
Use when building a document and cash checklist before applying.
Create a first-time homebuyer mortgage-application checklist for [PURCHASE TIMELINE] and [BORROWER PROFILE]. Organize it into income, assets, debts, credit, property, gift funds, and closing-readiness documents. Include common red flags such as unexplained deposits, new credit accounts, employment changes, and incomplete gift letters. State that lender requirements vary and do not estimate approval odds. Ask up to 3 questions if required facts are missing, then provide a dated preparation plan.
Tips
- Compare official Loan Estimates issued on the same day and for the same loan amount, property, and lock status.
- Points only make sense after calculating how long it takes monthly savings to recover their upfront cost.
- Use the total housing payment, including taxes, insurance, HOA dues, and mortgage insurance, for household budgeting.
- Keep deposits, gift funds, and account transfers documented; underwriting often requires an explanation and paper trail.
FAQ
Can AI tell me which mortgage is best?
It can make the tradeoffs visible, but the best choice depends on underwriting, your time horizon, liquidity, and risk tolerance.
Why do interest rate and APR differ?
The interest rate drives principal-and-interest payments. APR incorporates certain finance charges into an annualized comparison measure.
Can I rely on an online payment estimate?
Use it for planning only. Property taxes, insurance, mortgage insurance, and final closing costs require lender and local confirmation.