# Compare loan offers and see the real cost of borrowing

A clear comparison of loan or financing offers showing total cost, fees, and risky terms in plain language.

- Topic: Personal Life & Wellbeing
- Framework: Few-Shot
- Level: Standard
- Tags: Finance, Analyze, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/compare-loan-offers-and-see-the-real-cost-of-borrowing

## Prompt

```text
Help me compare loan or financing offers and understand what each will really cost me.

**What the loan is for:** [e.g. "car", "home repair", "consolidating credit cards", "furniture with store financing"]
**Offers:** [for each: lender, amount, interest rate or APR, term, monthly payment, fees, promo periods - paste the details]
**My budget for a monthly payment:** [AMOUNT]
**How soon I might pay it off early:** [e.g. "probably not", "within a year"]

Give me:
1. A table: Offer | Monthly payment | Term | APR | Upfront fees | Total paid over the loan | Total interest and fees. Show the math simply. If a number is missing, mark [ASK LENDER] instead of guessing.
2. A plain explanation of the difference between interest rate and APR, and why a lower payment can cost more overall.
3. Terms to watch for in each offer: deferred-interest promos, prepayment penalties, variable rates, balloon payments, required add-ons like insurance.
4. Questions to ask each lender before signing.
5. Whether I should borrow at all: a short check on alternatives such as saving first, a cheaper option, or a smaller amount.
6. My best option based on my inputs, and why.

Keep the language plain. This is general information; I should read the final loan agreement carefully before signing.
```

## What to fill in

- AMOUNT
- e.g. "probably not", "within a year"
- ASK LENDER

Free to copy and use. From ThinkWithPrompt (https://www.thinkwithprompt.com/), a library of 2,663 curated AI prompts.