Home Down Payment Timeline Calculator
Lenders often offer a credit toward closing costs in exchange for a slightly higher interest rate. Use this calculator to see whether taking the credit saves you money over your expected time in the home.
Net Savings/Cost With Credit
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Payment Without Credit—
Payment With Credit—
Extra Monthly Cost—
Total Extra Paid Over Period—
Lender Credit Received—
About this calculator
Estimate how much a lender credit reduces your closing costs in exchange for a higher interest rate, and see the break-even point.
Frequently Asked Questions
What is a lender credit?
A lender credit is money the lender gives you toward closing costs in exchange for accepting a higher interest rate on your loan.
When does taking a lender credit make sense?
It usually makes sense if you plan to sell or refinance before the extra interest paid exceeds the credit received.
Does this affect my loan balance?
No, the credit typically only offsets closing costs; it does not reduce your loan principal.