Mortgages and refinancing

The rate gets the attention. Closing costs, points and how long you will stay decide whether the deal is actually good.

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A mortgage is the largest loan most people will ever take, which means small differences in rate translate into large amounts of money. It also means the fees attached to arranging one are large enough to change the answer entirely.

Rate versus points

Lenders will sell you a lower rate in exchange for money paid up front, usually quoted in points, where one point is one per cent of the loan. Buying points is a bet that you will hold the loan long enough for the monthly saving to repay the up-front cost. If you might move or refinance within a few years, that bet usually loses.

Fixed or adjustable

A fixed rate holds for the life of the loan and makes budgeting simple. An adjustable rate usually starts lower and then resets on a schedule to a market-linked rate. Adjustable makes sense mainly when you have high confidence you will sell or refinance before the first reset, and can afford the payment if you do not.

Refinancing is a maths problem

Divide your total closing costs by your monthly saving. The result is how many months it takes to break even. If you expect to move or refinance again before that month arrives, the refinance loses money regardless of how much lower the new rate looks.

Compare your options

Before you publish: replace the rows below with real, verified products and current rates from your affiliate dashboard. Never publish placeholder figures as if they were live offers.

Provider	Rate type	Typical term	Best suited to	Watch for
[Lender name 1]Bank	Fixed	15 / 30 years	Long-term owners	Origination fees
[Lender name 2]Online lender	Fixed	15 / 30 years	Rate shoppers	Lender credits offset
[Lender name 3]Credit union	Adjustable	5/1, 7/1 ARM	Short expected stay	Reset caps
[Lender name 4]Broker	Both	10–30 years	Complex income	Broker compensation

Shopping a mortgage properly

Get Loan Estimates from at least three lenders. The form is standardised, which makes offers directly comparable page by page.
Compare page two, not the headline. That is where origination charges, points and third-party fees are itemised.
Ask what the rate is with zero points. It gives you a clean baseline before anyone starts trading fees against rate.
Do the enquiries within a focused window. Mortgage rate shopping in a short period is generally treated as a single event by scoring models.
Work out your break-even month before agreeing. If it lands after your realistic time in the home, decline.

Common questions

How much deposit do I actually need?

It depends on the loan programme. Conventional loans commonly ask for a larger deposit to avoid mortgage insurance, while some government-backed programmes accept far less. A smaller deposit gets you in sooner but raises both the monthly payment and the total interest.

Does shopping several lenders damage my credit?

Multiple mortgage enquiries made within a short shopping window are usually counted as one enquiry by credit scoring models. Not shopping around costs far more than the small scoring effect.

Should I pay points to lower my rate?

Only if you will hold the loan past the break-even point. Divide the cost of the points by the monthly saving to get the number of months. Compare that against how long you realistically expect to keep this mortgage.