Mortgage Strategy
How to Compare Refinance Offers Without Getting Tricked by Fees
Two refinance offers can show similar rates but produce very different outcomes. The clean way to compare is to normalize costs and evaluate break-even, not just headline rate.
Request the same assumptions from each lender
- Same lock period
- Same loan amount and term
- No points (or same points) unless intentionally compared
Focus on total lender + third-party costs
Group fees into one total and ignore small naming differences between lenders. You care about total dollars, not label variations.
Use break-even as a filter
Compare monthly savings versus total costs. The best offer is often the one with strongest net benefit over your expected timeline, not necessarily the absolute lowest rate.
Practical process: compare 3 offers side by side, rank by break-even months, then rank by projected cost over 3 to 5 years.
Common fee mistakes
- Ignoring points paid to get a lower rate.
- Missing lender credits that offset fees.
- Comparing monthly payment only while extending term significantly.
Compare Offers With the Refi Tool