SmartRate Advantage, Cost vs. Rate Analyzer
Compare a lower interest rate against a higher rate with additional lender credit on the same loan amount, then send the borrower a presentation that explains the trade-off.
Transaction type
How additional lender credit can improve your cash flow moving into a new home.
The two options
Option A - Lower Rate
Costs more up front
Monthly principal and interest: -
Option B - Higher Rate with Credit
Keeps more cash at closing
Monthly principal and interest: -
Third-party fees are excluded from this lender cost comparison because those costs generally remain similar regardless of which interest rate you select. Excluding them keeps the comparison focused on what actually changes between the two options.
To see the comparison, add:
- Enter a loan amount between $1 and $100,000,000.
Gross credit advantage
-
Cash kept at closing with Option B
- Additional lender credit on Option B
- -
Monthly payment difference
-
How much more the higher rate costs each month
Break-even point
-
When the credit kept at closing runs out