Target rate
Your acceptable rate depends on fees, loan term, and when you expect to exit the loan.
Choose the month you expect to keep the mortgage, then find the highest rate that still breaks even before then. Higher fees or a shorter stay require a lower rate; a longer stay can support a higher rate.
| Situation | Useful comparison |
|---|---|
| Moving soon | Break-even month versus move month |
| Comparing quotes | Rate, lender fees, and credits together |
| Lower payment goal | Payment and remaining balance at exit |
For a hypothetical $410,000 balance, a lower rate with $8,000 in fees may fail a 24-month target but meet a five-year target. Enter the same balance, costs, rate, and 24- or 60-month horizon in the calculator. The result is a decision threshold, not a prediction of available rates.
The calculator assumes fixed-rate principal-and-interest payments. Compare actual Loan Estimates because lender credits can offset closing costs in exchange for a higher rate.
Use Break even by month or Target savings under Advanced simulations to calculate a target from your own inputs.