Compare costs
Compare Your Options
Side by side
| Measure | Option A | Option B | Option C |
|---|---|---|---|
| Interest rate | 6.875% | 6.500% | 7.125% |
| Points ($) | $0 | $4,000 | $0 |
| Lender credit | $0 | $0 | $2,000 |
| Net upfront lender cost | $1,295 | $5,295 | -$705Lowest |
| Monthly principal & interest | $2,627.72 | $2,528.27Lowest | $2,694.87 |
| Estimated APR | 6.907% | 6.629%Lowest | 7.107% |
| Total cost over 5 yearsupfront + interest paid | $134,977 | $131,435Lowest | $138,012 |
| Total cost over 7 yearsupfront + interest paid | $185,898 | $179,335Lowest | $190,957 |
| Total cost over 30 yearsupfront + interest paid | $547,272 | $515,473Lowest | $569,450 |
| Recovery timeframemonths for any extra upfront cost (compared with Option C, the lowest upfront cost) to be repaid by a lower payment | 30 months (2 yrs 6 mo) | 37 months (3 yrs 1 mo) | 0 monthsLowest |
Total cost = points + lender fees, minus lender credit, plus interest paid over the period. Principal is excluded (it builds your equity either way). APR here is estimated with the Regulation Z actuarial method and treats points and lender fees as finance charges; the APR on your Loan Estimate controls. Third-party costs (title, appraisal, escrow) usually match across options and are left out.
Estimate only. This is not a Loan Estimate and not a commitment to lend. Your actual rate, payment and costs depend on your credit, the property and the loan program. Taxes and insurance are estimates.
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How to read this
Break-even is how many months the lower payment takes to repay the extra upfront cost. If you expect to sell or refinance before then, the option with less upfront cost usually wins.
APR folds upfront finance charges into a yearly rate assuming you keep the loan for its full term, so it favors paying points. The 5- and 7-year totals show what most borrowers actually experience.
Want real offers to compare? Ask Frank to personalize your rate. As a broker he can show you the same loan priced several ways across lenders.