---
title: Compare rates, points, and prepayment structures
description: "A loan structure includes more than its rate. Compare the upfront costs and exit terms with the period you expect to hold the loan. ## Understand points One point equals 1% of the loan amount. On a $400,000 loan, one…"
url: "https://www.shorttermrentaladvisory.com/docs/compare-rates-points-and-prepayment/"
updated: "2026-10-06"
category: Financing Comparisons
---

# Compare rates, points, and prepayment structures

A loan structure includes more than its rate. Compare the upfront costs and exit terms with the period you expect to hold the loan.

## Understand points

One point equals 1% of the loan amount. On a $400,000 loan, one point is $4,000. A zero-point option does not mean there are no lender fees, third-party costs, or prepaid items.

## Check the payment tradeoff

For a simple comparison, divide incremental upfront cost by monthly payment savings. An additional $4,000 cost for a $100 monthly reduction has a simple 40-month payback. This excludes time value, taxes, and other differences and is not a recommendation.

## Review early payoff terms

Read the actual prepayment structure, duration, and triggers. A planned sale or refinance can change the value of a lower-rate option. Do not assume every property or borrower has access to a no-prepayment-penalty option.

## Use the date and assumptions

Displayed financing options are preliminary and can change. Confirm current terms through review; saving an option does not lock a rate.

![STR Advisory platform example for compare rates, points, and prepayment structures](https://www.shorttermrentaladvisory.com/wp-content/uploads/2026/10/stra-rate-options.png)
Platform example. The property and figures shown may differ from your analysis.

## Related help

- [Save a financing option](https://www.shorttermrentaladvisory.com/docs/save-financing-option/)
- [Compare down payments](https://www.shorttermrentaladvisory.com/docs/compare-down-payment-options/)

[**Analyze a Property**](https://app.shorttermrentaladvisory.com/investor/check-options) · [Contact STR Advisory](https://www.shorttermrentaladvisory.com/contact/)

Property and financing outputs are preliminary estimates, not an approval, rate lock, commitment, or guarantee. Eligibility and final terms require professional review and lender underwriting.