2018 High-Cost Mortgage Threshold

The Points & Fees thresholds used to determine whether a loan is a High Cost Mortgage (HCM) will increase for 2018.  A loan will be considered a HCM if:


  • The loan amount is at least $21,032 AND the points & fees exceed 5% of the total loan amount. This is up from $20,579 in 2017.




  • The loan amount is less than $21,032 and the points & fees exceed the lesser of 8% of the total loan amount or $1,052. This is up from $1,029 in 2017.


As a reminder, there are 3 separate “tests” to determine HCM status (an APR test, a points & fees test and a prepayment penalty test) and if a loan meets the criteria of any one of the 3 tests, it is a HCM. The points and fees test is the only test where thresholds adjust annually.


Amy Kudlacek

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