Request a zero-point comparison
Ask each lender for a written zero-point option and any alternatives with points or credits. Keep the loan amount, term, lock period, and other assumptions consistent so you can see what the trade-off costs. CFPB — Points and lender credits ↗
Distinguish a credit from free financing
A lender credit can help manage cash needed at closing, but the related rate affects future payments. Likewise, paying points is not automatically the best choice. Ask which charges the credit covers and how both options change total cash to close.
Use a realistic holding period
Estimate when you might sell, refinance, or pay the loan down. A simple break-even is a starting point, not a complete lifetime-cost analysis. Do not assume you will keep a loan for its entire scheduled term.
PUT IT INTO PERSPECTIVE
An example, not an offer
Illustration only: on a $400,000 loan, one point is $4,000. If an option costing $4,000 more saves $80 per month, its simple break-even is 50 months. The assumed savings are fictional, not current pricing.
Compare break-even timelines →Related questions
Check the original guidance
Requirements and availability can change. Confirm the program and lender terms for your application.