Loan Comparison Calculator — 7 Loan Types for Investment Property

The loan drives your cash flow as much as the rent does. This guide compares 30-yr, 15-yr, FHA, ARM, commercial, hard money, and portfolio loans side by side.

A loan comparison calculator exposes how financing choice changes every return metric. Two properties with identical rent can have opposite cash flow purely because of the loan. This guide compares seven common investment loans.

The Seven Loan Types

How Loans Change Cash Flow

On a $285,000 home, 25% down:

• 30-yr @ 6.75%: P&I ≈ $1,475/mo
• 15-yr @ 6.00%: P&I ≈ $1,880/mo (higher payment, faster equity)
• 5/1 ARM @ 5.75%: P&I ≈ $1,330/mo (lower now, resets later)

A 15-yr loan can turn a positive cash flow negative despite a lower rate — because the payment is far higher.

DSCR Loans for Investors

Many investment loans are DSCR loans: approved on the property's cash flow, not your W-2. They require DSCR ≥ 1.0–1.25 and skip personal income docs — ideal for growing portfolios. Compare them against conventional on rate and fees.

Hard Money for BRRRR

Hard money (10–14%, 1–3 points) funds the buy-rehab phase when banks won't. It is expensive but short; the BRRRR refinance replaces it. Never hold hard money longer than planned.

FHA for House-Hacking

FHA's 3.5% down opens 2–4 unit buys if you occupy one unit. The low down boosts cash-on-cash dramatically, but owner-occupation is required initially.

ARM Risk

A 5/1 ARM saves now but resets in year 6 to market rates. Fine for a 3–5 year hold or BRRRR, risky for a 30-year hold. Model the worst-case reset rate.

Points, Fees & the True Cost of Capital

The interest rate is only part of the price. Lenders also charge points (1 point = 1% of the loan) and origination fees, which is why the APR — the rate that folds those costs into the yield — is the honest comparison number, not the headline rate. A 6.5% loan with 2 points can cost more over a short hold than a 6.875% loan with none. On a $214,000 loan, 2 points is $4,280 paid up front; if you sell or refinance in three years, that fee never amortizes away, so the effective rate is far above 6.5%.

When a Rate Buydown Actually Pays Off

Paying points to "buy down" the rate is a break-even calculation, not a discount. Divide the cost of the points by the monthly payment savings to get the number of months to recoup. If a $4,280 buydown saves $55/month, you break even at about 78 months (6.5 years). That only pays off if you hold past break-even — so buydowns suit long-term buy-and-hold and are usually a waste on a BRRRR or a 3–5 year flip.

Match the Loan Term to Your Exit

The best loan is the one whose structure ends when your plan does. A 30-year fixed suits an indefinite hold; a 5/1 ARM or interest-only bridge suits a defined 3–5 year exit where you'll sell or refinance before the reset. The danger is a mismatch — cheap short-term money on a property you end up holding through a rate reset. Before you pick a loan, write down your exit date and the balance you expect at that point, then compare loans on their cost to that date, not over the full amortization you'll never reach.

Using the Calculator Below

Pick loan types and enter price, down, and rate. The tool compares monthly P&I, total interest, and cash flow across loans so you pick the cheapest capital for your hold period.

Disclaimer: Rates vary daily by credit and market. Estimates, not a rate quote.

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