Mortgage Questions, Answered
Each page opens with the direct answer, shows the numbers behind it, and links the source. Pick the question closest to yours.
Shopping for a loan
How many lenders should I get quotes from?
At least three to four same-day quotes — but spread across lender types, not three of the same kind. Where the real pricing spread comes from and how to compare.
Read the answer →Do multiple mortgage credit pulls hurt my score?
No — credit models count all mortgage inquiries inside the shopping window (45 days on newer FICO models) as one. How the dedup rule really works, and the myths around it.
Read the answer →Is my Loan Estimate a good deal?
Four numbers grade any Loan Estimate: rate, APR, points, and the Section A total — against one same-day competing estimate. The five-minute method, and the traps that fool buyers.
Read the answer →Which Loan Estimate fees can I negotiate?
Section A is the lender’s own price and fully negotiable — it also legally cannot increase at closing. A section-by-section map of your Loan Estimate: negotiate, shop, or accept.
Read the answer →How do mortgage brokers get paid?
Brokers earn either lender-paid compensation priced into your rate or a borrower-paid fee — never both. How the compensation rules work and what "free to you" really means.
Read the answer →Is an online mortgage lender safe?
An online mortgage company is as safe as its license — verify any lender or broker on NMLS Consumer Access in about two minutes. The checks that matter and the red flags that do.
Read the answer →Should I use the builder’s preferred lender?
Builder incentives tied to the affiliated lender are only worth what the lender’s pricing gives back. How to benchmark the package, your legal right to choose, and the teaser traps.
Read the answer →Rates, points and locks
Interest rate vs APR: which one matters when comparing lenders?
The rate sets your payment; APR folds most upfront costs into one number. What a normal rate-to-APR spread looks like, and the two cases where APR actively misleads.
Read the answer →What actually moves mortgage rates?
Mortgage rates are the bond market plus a spread plus a margin — not the Fed funds rate. Why rates can rise while Treasuries fall, and which layer you can actually shop.
Read the answer →Should I lock my rate now or wait?
Lock when the numbers work and your closing fits inside the lock period — a quote is not protection. How locks, float-downs, and extension fees actually work.
Read the answer →Why did my locked rate change before closing?
A real lock can only change through a documented changed circumstance — or it was never really locked. Legitimate repricing triggers, bait-and-switch red flags, and your recourse.
Read the answer →Should I buy points on my mortgage?
Points and lender credits are the same menu read in opposite directions. The real break-even math — including the three costs the simple calculator hides — and who each side fits.
Read the answer →Should I get an ARM or a 30-year fixed?
The ARM decision is fixed-period savings versus capped worst case — not vibes about rates. How to run the numbers, who each loan fits, and how to stress-test the “refi later” plan.
Read the answer →Refinancing and paying down
When is refinancing worth it?
Forget the 1% rule — refinancing is worth it when the savings outrun the costs over the years you will actually keep the loan. The honest framework, structure by structure.
Read the answer →What’s the catch with a no-cost refinance?
A no-cost refinance is real — the costs are just paid through a higher rate or a bigger balance. When that trade is brilliant, when it is expensive, and the math to tell the difference.
Read the answer →Does refinancing restart your 30 years?
A refi only resets your term if you choose a new 30-year loan. Two ways to refinance without extending your payoff date — and when restarting is actually the right call.
Read the answer →Recast vs refinance: which should I do?
A recast keeps your rate and term and re-amortizes after a lump sum for a small fee; a refinance replaces the loan. The decision rule, the eligibility traps, and when to do both.
Read the answer →Should I give up my low mortgage rate to move?
The lock-in math is real — but the rate gap is not the whole decision. How to price a move against a 2–3% mortgage, and the alternatives: rent it out, renovate, recast, or wait to refi.
Read the answer →Should I pay off my mortgage early?
Paying off a mortgage early is a risk decision, not just a math decision. The real trade-offs — rate vs expected returns, liquidity, life stage — and the tax myth to ignore.
Read the answer →Qualifying and buying
How much house can I afford — really?
Lender DTI limits run far above the 28/36 budgeting rule — approval and affordability are different questions. Real limits by loan type, front-end vs back-end DTI, and the gap to mind.
Read the answer →How do gift funds work for a mortgage?
Roughly one in five first-time buyers gets down-payment help. The gift letter, the paper trail lenders trace, who may give, gifts of equity, and the mistakes that stall closings.
Read the answer →Can I use rental income to qualify for a mortgage?
Lenders can count 75% of documented rent from the home you’re leaving against its payment — often the difference between qualifying and not. The rules, the math, and DSCR loans.
Read the answer →What is an 80-10-10 piggyback loan?
A piggyback pairs a conforming first mortgage with a smaller second so you can avoid PMI, stay under the conforming limit on a bigger purchase, or both. Structures and trade-offs.
Read the answer →How should I use a seller or builder credit?
Seller credits are common again — and most buyers spend them wrong. The order that maximizes value, the limits by loan type, and when a rate buydown is the last resort, not the first.
Read the answer →What happens if the appraisal comes in low?
A low appraisal is a negotiation event, not a dead deal. Reconsideration of value, renegotiating the price, covering the gap, and when switching lenders gets a fresh appraisal.
Read the answer →Is this a good rate?
How to judge a quoted rate
Compare any quote against today's market by credit score and down payment.
Is 5.5% a good mortgage rate?
Is 5.75% a good mortgage rate?
Is 6% a good mortgage rate?
Is 6.25% a good mortgage rate?
Is 6.5% a good mortgage rate?
Is 6.75% a good mortgage rate?
Is 7% a good mortgage rate?
Is 7.25% a good mortgage rate?
Is 7.5% a good mortgage rate?
About Ralo
Rate data
Weekly rate report
Each Monday: Ralo's rates with APRs against the Freddie Mac average.
Rate Index
The weekly history of Ralo rates against the national average.
City Rate Index
Illustrative local rates by county, credit score and down payment.
ARM Index
Margins, caps and the current SOFR index for adjustable-rate loans.
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