Create one standard scenario and give it to each lender. The worksheet works best when every quote is from the same day and clearly identifies its lock status. Write down what is missing; an incomplete quote is a reason to ask a question.
A useful comparison makes differences visible rather than hiding them in a single score.
Hold the scenario steady
Record purchase price or property value, loan amount, down payment, occupancy, credit assumptions, product, term, and lock duration. Different inputs can produce different pricing before a lender’s competitiveness even enters the picture.
Compare cash, payment, and timing
For Lenders A, B, and C, record rate, APR, points in dollars, lender charges, lender credits, principal and interest, estimated total payment, cash to close, and expected closing timeline. Mark tax and insurance estimates that are not yet verified.
An example of why the rate alone is not enough
Suppose three hypothetical worksheets use the same $400,000 loan, term and lock period. A lists $3,000 of lender fees and $4,000 of discount points. B lists $3,000 of lender fees and no points or credits. C lists $3,000 of lender fees and a $2,000 lender credit. Their lender charges after credits are $7,000, $3,000 and $1,000 respectively, before third-party costs and prepaids. You still need the actual rate, payment, APR and complete fees to choose. These are fictional arithmetic examples, not offers.
Turn the difference into a question
If A saved $80 per month compared with B in a hypothetical comparison, its additional $4,000 upfront cost divided by $80 would equal 50 months. That simple payment break-even omits differences in remaining principal, tax effects and the value of money over time. Use the same planned holding period and ask the LO for a fuller comparison before paying extra points.
Keep an explanation with each quote
Ask who will process the loan, which conditions remain, how pricing changes are handled, and what happens if the closing date moves. Save the written answer with the estimate. Service expectations matter, but do not invent a score that pretends unverified claims are facts.
Explore private mortgage shopping
Use the free tools to prepare your scenario, then check Quote Your Way for eligible originators and request availability. Review how sharing a scenario differs from choosing a professional to contact you.
Compare mortgage quotes with contact choices you control →Does a lower rate justify paying points?
Imagine a Washington shopper comparing two $500,000, 30-year fixed loans. Both use the same property, credit assumptions, quote date and lock period. Option B trades $5,000 upfront for a lower rate. This is a teaching example, not available pricing or a standard rate reduction for one point.
| Compare | A · No points | B · One point |
|---|---|---|
| Illustrative interest rate | 6.500% | 6.250% |
| Discount points paid at closing | $0 | $5,000 |
| Monthly principal and interest | $3,160 | $3,079 |
| Balance after 3 years | $482,086 | $481,268 |
| 3-year interest + points | $95,858 | $97,097 |
| Balance after 7 years | $452,081 | $450,168 |
| 7-year interest + points | $217,550 | $213,769 |
After three years, A costs about $1,239 less in interest and points. After seven years, B costs about $3,781 less. The lower monthly payment does not make B the lower-cost choice at every horizon.
Assumptions and calculation
Payments amortize the original balance over 360 months, with no extra payments or financed points. Interest equals payments made minus principal repaid. The comparison adds the upfront points to that interest; principal repayment builds equity and is not counted as borrowing cost. Remaining balances are shown because a loan payoff includes what you still owe.
This illustration isolates rate and points. It excludes other lender fees, credits, prepaid interest, taxes, insurance, mortgage insurance, escrow deposits, tax effects and the time value of money. It is not a total cash-to-close calculation or an APR estimate. Use complete itemized charges and the actual payment schedule for a real comparison.
Ask for the lender’s APR and official Loan Estimate, then compare your expected time in the loan. CFPB’s Loan Estimate explainer shows where to find costs and comparison figures. Try your own assumptions in the points calculator.
Your action list
0 of 6Progress is saved in this browser. No account needed.
Optional. Saved only on this device; not sent to a lender.
Check the local details
Find your state guide for county loan limits and official housing resources, or review the complete mortgage-shopping checklist.
Keep learning from the source
Sources for context and current requirements. Links do not imply endorsement.
CFPB: Understanding your Loan Estimate ↗CFPB: Points and lender credits ↗General education, not an approval or personalized recommendation. Loan terms and eligibility vary. Our editorial standards.