Mortgage questions, answered
Real questions borrowers ask, answered in plain English by The Mortgage Advisory, a mortgage lender and broker licensed in California, Texas, Florida, and Colorado (NMLS #1549739).
3 answers in Refinancing
Clear searchI got a mailer offering a very low refinance rate. Is it real, and how do I spot hidden points?
Sometimes the rate is real, but it usually comes with strings: upfront points, an adjustable rate, or assumptions like perfect credit and lots of equity. Look at the APR, the points, and the fine print, and ask for a Loan Estimate to compare. The Mortgage Advisory will look over any mailer or quote with you and show you what it really costs.
What is a no-closing-cost refinance, and is it really free?
No. In a no-closing-cost refinance, the lender covers your costs in exchange for a slightly higher interest rate, or the costs get added to your loan balance. It can be a smart move if you might sell or refinance again within a few years. The Mortgage Advisory shows you the no-cost and standard options side by side so you can see which one costs less over your time in the home.
When is refinancing worth it, and how much lower does my rate need to be?
There's no magic rate drop. A refinance is worth it when the monthly savings pay back your closing costs well before you'd sell or refinance again, usually within two to three years. At The Mortgage Advisory, we give you the break-even month in writing and tell you to wait if the math doesn't work.