Mortgage Strategy
Refinance Red Flags: Fees and Terms to Avoid
Good refinance offers are transparent. Bad ones hide cost in points, vague fee categories, and term resets that increase long-run expense.
Red flags to watch
- Unclear "miscellaneous" lender fee buckets
- Very low advertised rate with high points
- Focus only on payment drop, no break-even disclosure
- Pressure to lock immediately without written estimate
What a clean offer should include
Clear APR, fee line items, rate/points structure, and a straightforward timeline for closing and cash needed.
Rule: if you cannot explain the offer in plain English, do not sign it yet.
Before saying yes
- Compare at least 3 written offers.
- Compute break-even with full costs.
- Model 3-year and 5-year total outcome.
Screen Offers With Refi Calculator