An example
Consumer A need a 4% rate, if you are Client B keeps an effective 4.25% rates. Both are to find a beneficial $250,000 household. Customer A pays $179,674 inside appeal while you are Buyer B will pay $192,746. This really is a difference regarding $thirteen,072. You then need put that it desire on the extra notice Buyer B is actually investing in the fresh closing costs on loan.