Compare how rates & closing costs affect your monthly mortgage payment and which is better for you in the long run.
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Option 1
"No-Cost" or "Low-Cost"
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A No-Cost or Low Cost loan has lower closing costs, but normally a slightly higher rate. This means that you can save money if you refinance or sell the home before the Break-Even Point.
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Mortgage Balance after closing costs
$ -
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Option 2
Higher closing cost
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A Higher Closing Cost loan has higher closing costs, but normally a slightly lower rate. In the long term, this type of loan can save you money if you keep it past the Break-Even Point.
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Mortgage Balance after closing costs
$ -
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Payment difference
$ -
Breakeven Point:
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Difference in Closing Costs:
$ -
- With - , your mortgage balance after closing costs is - than - .
- By paying – more, it will take - to pay back the - difference in closing costs between the two options.
- Tax Benefit : Your tax writeoff will be larger with the higher rate option.
Notes : For use with fixed rate loans, does not include PMI, taxes, or other fees. Meant for general illustration purposes, and is not a quote. Contact us today to get a full comparison based on your situation.
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