Today's rates
One loan, four ways to structure it.
Rate, points, and credits are one dial, not separate deals. Pay more upfront and the rate drops; take a lender credit and the rate rises while your cash to close falls. The best option is the one whose break-even matches how long you will keep the loan, and it is often not the lowest rate.
Lowest Rate
Live pricing for this option publishes during market hours.
Pay more upfront for the lowest rate and payment.
Best if you plan to keep the loan for many years.
Why would I choose this?
You pay roughly two points (2% of the loan amount) at closing to buy the rate down. The longer you keep the loan past the break-even point, the more those upfront dollars earn back.
Trade-off: Highest cash requirement at closing. If you sell or refinance before break-even, you lose part of what you paid.
Lower Rate
Live pricing for this option publishes during market hours.
A middle ground: some points, a lower rate.
Best balance if you want a lower payment without the full buydown cost.
Why would I choose this?
You pay roughly one point (1% of the loan amount) for a moderate rate reduction. Break-even arrives sooner than the deepest buydown.
Trade-off: Still requires upfront cash that only pays off if you keep the loan past break-even.
Standard Option
Live pricing for this option publishes during market hours.
The balanced baseline with minimal points or credits.
Best for apples-to-apples comparison, or if your plans are uncertain.
Why would I choose this?
Little or nothing paid for the rate and little or nothing received back. This is the cleanest number to compare any other offer against.
Trade-off: Neither the lowest payment available nor the lowest cash to close.
Lower Closing Costs
Live pricing for this option publishes during market hours.
The lender credits part of your closing costs; the rate is a bit higher.
Best if reducing cash to close matters most, or you may move or refinance within a few years.
Why would I choose this?
Instead of you paying points, the lender contributes toward eligible closing costs in exchange for a somewhat higher rate. Less money out of pocket on day one.
Trade-off: This is not free money: you trade a higher rate and payment for the upfront savings. Over a long holding period it usually costs more in total.
Live rates publish during market hours, when wholesale lender rate sheets are active.
Representative scenario: $400,000 conventional 30-year fixed rate-and-term refinance, single-family primary residence in Michigan, $550,000 value (~73% LTV), 780+ credit, 30-day lock. Your rate and APR will differ based on your credit, property, occupancy, loan-to-value, and other factors. Payments shown are principal and interest only and exclude taxes, insurance, and HOA dues. Break-even estimates compare upfront cost against monthly savings versus the Standard Option. Not all applicants qualify for every product. Rates change without notice and this is not an offer, a rate lock, or a commitment to lend. Mortgage brokerage services provided by F5 Mortgage LLC, NMLS #1938115. Equal Housing Opportunity.
Want numbers for your exact scenario? Get a personalized review.
How to pick in 10 seconds
- Keeping the loan a long time? The buydown options earn their upfront cost back and then keep saving.
- Plans uncertain? The Standard Option is the cleanest baseline and the easiest to compare.
- Cash to close matters most? Lower Closing Costs trades a higher rate for real day-one savings.
- Somewhere in between? Lower Rate is the middle ground; check its break-even against your timeline.
Get your exact numbers
These options price a disclosed representative scenario so the trade-offs are honest and comparable. Your credit, property, loan size, and goals will move every number. Send us what you have and a licensed team will structure the real choices for your file, including telling you if what you already have is the right one to keep.