Last reviewed: 3 October 2026
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Points and fees limits on qualified mortgages
A qualified mortgage cannot have more than a set amount of “points and fees.” This page shows the caps in the regulation, including the 2026 dollar amounts, and what the regulation counts. It is not a calculator.
What this term means: Points and fees is a defined legal total. Regulation Z defines it as listed fees and charges that are known at or before consummation (the regulation’s term for the point at which you become obligated on the loan).[3] A qualified mortgage is a loan that meets the extra standards in 12 CFR § 1026.43 (see our ability-to-repay guide).
Why a lender might cite a limit
The CFPB says the mortgage rules only stop a lender from making a loan when the borrower does not have the ability to repay it.[1] It says a lender may follow the ability-to-repay rule by making only qualified mortgages, which have caps on upfront points and fees.[1] A lender that is not making a qualified mortgage can charge higher points and fees if it chooses, according to the CFPB.[1]
The caps
The regulation says a loan is not a qualified mortgage unless its total points and fees do not exceed the limits in the table.[2] It adjusts the dollar amounts each 1 January by the change in the Consumer Price Index for All Urban Consumers (CPI-U) reported on the preceding 1 June.[2] The CFPB question-and-answer page lists the base amounts; the regulation’s commentary lists the 2026 amounts.
| Tier | Base loan amount (regulation text) | Base cap | 2026 loan amount (commentary) | 2026 cap |
|---|---|---|---|---|
| 1 | $100,000 or more[2] | 3 percent of the total loan amount | $137,958 or more[2] | 3 percent of the total loan amount |
| 2 | $60,000 up to but not including $100,000[2] | $3,000 | $82,775 up to but not including $137,958[2] | $4,139 |
| 3 | $20,000 up to but not including $60,000[2] | 5 percent of the total loan amount | $27,592 up to but not including $82,775[2] | 5 percent of the total loan amount |
| 4 | $12,500 up to but not including $20,000[2] | $1,000 | $17,245 up to but not including $27,592[2] | $1,380 |
| 5 | Less than $12,500[2] | 8 percent of the total loan amount | Less than $17,245[2] | 8 percent of the total loan amount |
The 2026 cap amounts above come from the regulation’s commentary for 2026 (it says the 2026 amounts reflect a 2.3 percent increase in the CPI-U[2]). They apply to the year the regulation names. Check the regulation for the current year.
“Loan amount” and “total loan amount” are different
The regulation’s commentary says you find the tier from the loan amount, which is the principal amount you will borrow as shown in the promissory note or loan contract.[2] For tiers with a percentage cap, the percentage applies to the “total loan amount,” which may be a different figure.[2] For a closed-end loan, the total loan amount is the amount financed minus certain points-and-fees costs that are financed by the lender.[3]
Worked example from the regulation’s commentary (arithmetic only). For a loan amount of $55,000 with a total loan amount of $52,000, the allowable points and fees are 5 percent of $52,000, or $2,600.[2] For a loan amount of $75,000 in the flat-dollar tier, the allowable total is $3,000 regardless of the total loan amount.[2] These examples use the regulation’s base tiers, not the 2026 amounts, and are not a prediction for any loan.
What counts as points and fees
For a closed-end loan, the regulation lists these categories, each limited by the exclusions the regulation sets out:
- Items included in the finance charge, except certain listed items.[3]
- Compensation paid directly or indirectly by a consumer or the lender to a loan originator that can be attributed to the transaction at the time the interest rate is set, unless an exclusion applies.[3]
- Items listed in § 1026.4(c)(7), other than amounts held for the future payment of taxes, unless an exclusion applies.[3]
- Premiums or other charges payable at or before consummation for credit life, credit disability, credit unemployment or credit property insurance, and certain other insurance for which the lender is a beneficiary, and payments for a debt cancellation or suspension agreement.[3]
- The maximum prepayment penalty that may be charged under the loan’s terms.[3]
- The total prepayment penalty the consumer incurs if refinancing an existing mortgage with its current holder.[3]
This is a summary of headings. The exclusions and definitions that decide what is in or out of the total are in the regulation. This page does not match lines on a Loan Estimate or Closing Disclosure to that definition, so do not assume a form’s closing-cost total equals “points and fees.”
How to verify this yourself
Open the regulation pages in the reference list: § 1026.43(e)(3) for the caps and § 1026.32(b) for the definitions. The commentary under § 1026.43(e)(3)(ii) lists each year’s amounts. The CFPB’s question-and-answer page gives the base amounts. You can ask your lender in writing whether the loan is meant to be a qualified mortgage and, if so, how it counted points and fees. See what closing costs include and how to read your Loan Estimate for the forms. How we check originators is in our published standard. If you want to check a person who offered you a loan, use the NMLS license guide; the Register page explains our method and reports findings in aggregate, not by product.
What this page does not cover
This page is general information, not legal advice. It does not calculate any loan’s points and fees or say whether a loan is a qualified mortgage. It does not cover the exceptions in the regulation, the separate high-cost mortgage tests, or state limits. The CFPB question-and-answer page was last reviewed 2 February 2024. The regulation was read on 3 October 2026 and its dollar amounts change every year. This page was last reviewed 3 October 2026.
Your next step
Find your loan amount on your Loan Estimate, then look up the matching tier in the regulation’s commentary, which lists each year’s amounts. If the lender gives a different cap, ask it in writing which tier and which year’s amounts it used. Return to the Mortgage help library for related guides.