Costs & Fees

Lender Credit Calculator

Compare taking a lender credit (higher rate, lower closing costs) against paying for a lower rate upfront. See how long it takes for the lower rate to pay off.

Calculate Your Break-Even Point

Lower Rate
6.25%
$1,970/mo
Lender Credit
6.75%
$2,076/mo
Monthly difference: $105 · Upfront cost difference: $3,200
Break-Even Point
2 years, 7 months
3 years
+$588
Lower rate wins
5 years
+$3,113
Lower rate wins
7 years
+$5,638
Lower rate wins
10 years
+$9,426
Lower rate wins

Related Articles

Lender Credit vs Lower Interest Rate: Which One Should You Pick?

Your lender is offering you a choice: a credit toward closing costs or a lower interest rate. Here's how to figure out which option actually saves you more money, with real numbers and break-even calculations.

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