09/03/2026
Numbers don't lie, but someone can make them tell a lie, if you're not looking at the full picture 👀
When you look for a mortgage, it’s natural to want the lowest interest rate possible. We treat it like looking for the cheapest price for anything we buy nowadays.
However, in real estate, a lower rate usually comes with a hidden price tag.
Mortgage options are flexible.
For the exact same loan, 3 different lenders might offer you a few different rate tiers. The catch?
The lower the rate, the more cash you have to pay upfront in the form of "points." But before shoppers ever get to the "what's it going to cost" question, they have already decided what option works, solely off of the rate. Or worse, they don't actually find out the cost until they're "stuck" with that lender.
This is where a math check is crucial.
Imagine paying an extra $8,000 at closing just to drop your rate enough to save $150 a month. You would need to keep that exact same loan for nearly four and a half years just to break even on your initial investment.
Now imagine paying that same $8,000 but saving $300 a month instead and shifting your break even point to a little over 2 years 🤔
Same exact scenario, completely different pricing.
Shopping mortgages is a bit complex, and it's mainly complex because the lenders behind the numbers are just trying to win you over with a low number.
Don't let them fool ya 👀
