The Cumulative Payment Analysis tool helps you answer one of the most common client questions: "Which loan option actually saves me money?" Instead of guessing or relying on simple rate comparisons, this tool tracks the total cost of each loan scenario month by month, factoring in upfront costs, monthly payments, and principal paydown. Whether you are comparing discount point options, different loan programs, or refinance scenarios, this analysis gives you a clear, data-backed answer you can present with confidence.
Before You Start
Requirement | Details |
Loan scenarios created | You need at least two loan scenarios already built in your deal (e.g., different rates, point structures, or loan programs) |
Loan Comparison Table | Your scenarios must be accessible from the Loan Comparison Table view |
Points Analysis (recommended) | Reviewing the Points Analysis section first gives you break-even context that ties directly into the Cumulative Payment Analysis results |
Step-by-Step: Running a Cumulative Payment Analysis
1. Open the Loan Comparison Table
Navigate to your deal and open the Loan Comparison Table containing your scenarios.
2. Go to the Analysis Section
Within the Loan Comparison Table, locate and select the Analysis section.
You will see both the Points Analysis tab and the Cumulative Payment Analysis tab.
3. Review Total Payments at Time Zero
The first section displayed is Total of All Payments, which starts at month zero (closing).
At time zero, the differences between your options reflect only the cash to close plus earnest money. Options with higher discount points will show a higher starting cost.
4. Adjust the Timeline
Use the month input field to type a specific month number, or drag the slider to move through the loan timeline.
As you increase the month value, watch how the cost difference between options changes. Lower-rate options gradually close the gap because of reduced monthly interest charges.
⚠️ Important: The month where a higher-point option first shows the lowest total payments is not the same as the break-even point from the Points Analysis. Total payments include everything (closing costs, monthly payments, and interest), while the Points Analysis focuses specifically on when the upfront point cost is recovered through monthly savings.
5. Find the Total Payment Crossover Point
Continue increasing the timeline until the option with the lowest rate shows the lowest cumulative total.
This is your total payment crossover point, the month where that option becomes the least expensive in total dollars spent.
Financial Position Analysis
This second section of the tool goes deeper than total payments alone. It factors in how much principal you have paid down, giving you a true picture of your client's overall financial standing at any point in the loan.
How It Works
Metric | What It Measures |
Total of All Payments | Every dollar spent from closing through the selected month (closing costs + all monthly payments) |
Principal Balance | The remaining loan balance at the selected month |
Total Financial Position | The combined total of all payments plus the current principal balance. The lowest number wins. |
Why This Matters
A lower interest rate means more of each payment goes toward principal, which reduces the remaining balance faster.
Even if you have spent more upfront on points, the combination of lower total payments and a lower remaining balance can make that option the strongest financial position sooner than you might expect.
Finding the Financial Position Crossover
Set the slider or input field back to month zero. All options start with the same principal balance.
Increase the timeline and watch for the month where a lower-rate option achieves the lowest Total Financial Position value.
This crossover often aligns closely with the break-even month from your Points Analysis, because the principal paydown advantage and interest savings combine to offset the higher upfront cost right around that same window.
💡 Tip: For refinance comparisons, principal balances may differ at time zero because one option may roll closing costs and prepaids into the loan balance. The Financial Position Analysis accounts for this automatically, making it especially valuable for refinance presentations.
Finishing Up / Next Steps
1. Identify the Best Option for Your Client's Timeframe
Ask your client how long they plan to keep the loan. Use the slider to land on that month and see which option puts them in the best financial position.
2. Use the Results in Your Client Conversation
Walk your client through the analysis by showing the crossover point. This gives them a concrete, visual answer rather than an abstract rate comparison.
Quick Reference
Open Loan Comparison Table → Select Analysis → Choose Cumulative Payment Analysis → Set timeline with slider or month input → Review Total Payments crossover → Review Financial Position crossover → Present best option to client
Tips for Success
Start with the Points Analysis first—understanding break-even months gives you context before diving into the cumulative view, and helps you explain both concepts to your client in a logical sequence.
Match the timeline to your client's plans—a client selling in three years needs a very different recommendation than one staying for fifteen. Always anchor the analysis to their actual situation.
Use Financial Position for refinances—when principal balances differ at time zero due to rolled-in costs, the Financial Position section gives the most accurate comparison of when the new loan truly becomes the better deal.
Let the slider tell the story—during client presentations, slowly increase the month value so your client can watch the numbers shift in real time. This builds understanding and trust far more effectively than jumping straight to a final number.