diff --git a/ospfd/ospf_interface.c b/ospfd/ospf_interface.c
index 5742ece1f7..f18aa399a4 100644
--- a/ospfd/ospf_interface.c
+++ b/ospfd/ospf_interface.c
@@ -101,6 +101,9 @@ int ospf_if_get_output_cost(struct ospf_interface *oi)
 			cost = 1;
 		else if (cost > 65535)
 			cost = 65535;
+
+		if (if_is_loopback(oi->ifp))
+			cost = 0;
 	}
 
 	return cost;
diff --git a/ospfd/ospf_lsa.c b/ospfd/ospf_lsa.c
index 452a3ba374..67f1faf8a9 100644
--- a/ospfd/ospf_lsa.c
+++ b/ospfd/ospf_lsa.c
@@ -608,7 +608,8 @@ static int lsa_link_loopback_set(struct stream **s, struct ospf_interface *oi)
 
 	mask.s_addr = 0xffffffff;
 	id.s_addr = oi->address->u.prefix4.s_addr;
-	return link_info_set(s, id, mask, LSA_LINK_TYPE_STUB, 0, 0);
+	return link_info_set(s, id, mask, LSA_LINK_TYPE_STUB, 0,
+			     oi->output_cost);
 }
 
 /* Describe Virtual Link. */