Lender for Life—or Just Another Transaction?

When buying almost anything, everyone wants a “good deal.” That instinct makes sense. But when it comes to mortgages, many buyers do not fully understand what a good deal actually looks like.

I see it every day. Borrowers often ask two questions: What’s my rate? and What will it cost? Most of the focus, however, is placed almost entirely on the rate. Recently, I have seen 30-year fixed-rate quotes ranging from the national average near 6.25% to numbers as low as 5.50% for identical borrower profiles. That spread alone should raise a red flag.

Rates do not exist in a vacuum. In most cases, the difference comes down to discount points—fees paid upfront to “buy down” the interest rate. In today’s market, achieving a 5.50% rate could require roughly 2.5 discount points, or about $10,000 on a $500,000 loan. While the lower rate may reduce the monthly payment by approximately $250, the breakeven period is close to 40 months. If a borrower refinances before that point—as many expect to do during a potential refinance cycle in 2026—the lower rate becomes the more expensive choice. The lesson is simple: compare total cost, not just the headline rate.

Buyers should also ask whether a quoted rate can actually be locked today. It is not uncommon to see lenders advertise aggressive rates that cannot be executed for a standard 30-day lock. Some loan officers know borrowers are shopping purely on rate and will quote below-market numbers that are not immediately available. While effective as a sales tactic, it can be misleading and ultimately damaging to the borrower.

Another critical question is loan servicing. Will the lender continue servicing the loan after closing, or will it be sold immediately? Companies that service a majority of their loans maintain an ongoing relationship with the borrower. This continuity can matter. Servicers are more likely to monitor market conditions, advise clients when refinancing makes sense, and—here in Georgia—help borrowers avoid paying intangible tax again on a refinance, which can represent meaningful savings.

Finally, get referrals—and vet them. Ask your real-estate agent who they trust. Research the loan officer’s experience, availability, customer reviews, and track record. This is likely the largest financial transaction of your life, and it deserves more scrutiny than a quick online quote.

Mortgage lending is slow right now, and some originators are under pressure to win business at any cost. Buyers should look beyond the transaction and seek a lender for life—someone who prioritizes long-term financial outcomes, not just today’s closing.

What to Ask Your Lender

A quick checklist before you choose

1. Can this rate be locked today?
   If the rate cannot be locked for a standard 30-day period, it may not be a realistic quote.
2. How much does this rate cost in points?
   A lower rate often requires upfront fees. Ask for the total dollar cost—not just the interest rate.
3. What is my breakeven timeline?
   Find out how long it will take for monthly savings to recoup any upfront costs, especially if refinancing is likely.
4. Will you service my loan after closing?
   Lenders who retain servicing can provide continuity, guidance, and potential cost savings on future refinances.
5. What happens if rates drop before I close?
   Ask whether a float-down option or rate-adjustment policy is available.
6. How long have you been originating mortgages?
   Experience matters—particularly in volatile markets.
7. Are you available nights and weekends?
   Real estate does not operate on banker’s hours. Neither should your lender.
8. Can you provide recent client reviews or referrals?
   Reputation and service history are as important as pricing.