Mortgage rates are finally starting to fall, and for many homeowners in Albuquerque and across New Mexico, this feels like the perfect time to refinance. A lower interest rate can reduce your monthly payment and save you money over the life of your loan. However, as Ben Lucero of Indigo Mortgage explains, borrowers should be careful not to get blindsided by flashy “too good to be true” offers.
While refinancing can be a smart financial move, the reality is that not all low rates are created equal. Understanding when to refinance your home loan—and how to evaluate the full costs—can make the difference between true savings and a very expensive mistake.
Why a Low Rate Isn’t Always the Best Deal
At first glance, a lower rate looks like a no-brainer. Who wouldn’t want to pay less interest? But some lenders use this strategy as a marketing tool, offering an ultra-low interest rate that is tied to huge upfront costs.
Ben Lucero recently shared a cautionary story. A borrower came to him after being offered an extremely low mortgage rate from an online lender. When the borrower looked closer at the loan estimate, he discovered he would be paying $40,000 in discount points just to secure the rate. After adding in additional closing costs, the total came out to over $50,000 upfront.
This example highlights an important lesson: if you only look at the interest rate, you could be blindsided by the hidden costs. While the rate looked good on paper, it would have taken decades of monthly savings just to break even on the money spent upfront. Fortunately, that borrower listened to Ben Lucero’s advice, shopped around, and ultimately refinanced through Indigo Mortgage, avoiding what could have been a devastating financial misstep.
When to Refinance Your Home Loan
So, how do you know if refinancing is the right move for you? Here are a few situations where it makes sense to consider refinancing your home loan:
1. When Rates Drop Enough to Save You Money
If current mortgage rates are at least 1% lower than what you’re paying, refinancing might reduce your monthly payment significantly. Over time, this can add up to tens of thousands of dollars in savings. We can help you determine when is the right time.
2. When You Plan to Stay in Your Home
Refinancing often comes with closing costs, so you’ll want to make sure you’ll be in your home long enough to recoup those expenses. The local mortgage professionals at Indigo Mortgage can help you calculate your “break-even point.”
3. When You Want to Shorten Your Loan Term
Switching from a 30-year mortgage to a 15-year mortgage can help you pay off your home faster and save on interest. If rates are low, this could be a good time to make the move.
4. When You Need to Access Equity
Some homeowners refinance to pull cash out for home improvements, debt consolidation, or other expenses. Just make sure the numbers make sense for your financial goals.
Ben Lucero emphasizes that refinancing is not a “one size fits all” decision. Timing, loan costs, and your personal financial situation all matter. That’s why working with a trusted local company like Indigo Mortgage is so important.
The Risks of Chasing the Lowest Rate
Here’s the truth: some lenders rely on the fact that borrowers shop with their eyes instead of their calculators. They dangle a low rate but bury the details in fine print. Online lenders, in particular, are notorious for offering what seems like an unbeatable rate—only to reveal outrageous fees once you’re locked in.
That’s why Indigo Mortgage encourages borrowers to compare not just the rate, but also:
- Discount points – How much are you paying upfront to lower the rate?
- Closing costs – Are the fees inflated compared to other lenders?
- Long-term value – How long will it take for the lower payment to outweigh the upfront expense?
When you shop with a local Albuquerque mortgage company like Indigo Mortgage, you’ll get transparent numbers and honest advice—without the hidden tricks.
Why Work With Indigo Mortgage?
For more than 20 years, Indigo Mortgage has been serving Albuquerque and the entire state of New Mexico. Led by Ben Lucero, the company has built a reputation for integrity, transparency, and putting borrowers first. Unlike some big banks and online lenders, Indigo Mortgage focuses on the local community and provides one-on-one guidance through the mortgage process.
Here’s what sets Indigo Mortgage apart:
- Local expertise. Ben Lucero and his team understand the New Mexico housing market and can guide you with accurate, region-specific advice.
- No hidden costs. All fees and points are explained clearly up front, so you know exactly what you’re paying for.
- Personalized solutions. Whether you’re refinancing, purchasing, or exploring VA loans, Indigo Mortgage works to find the option that truly benefits you.
- Trusted reputation. Thousands of New Mexicans have turned to Indigo Mortgage because they know the company operates with honesty and transparency.
Protect Yourself From Being Blindsided
As rates come down, refinancing can be a smart financial strategy—but only if you take the time to evaluate your options. Don’t let a low rate blindside you into paying thousands more than necessary. Instead, compare offers carefully, ask questions, and work with a mortgage professional who has your best interest in mind.
Remember, when it comes to deciding when to refinance your home loan, the lowest rate isn’t always the best choice. The right lender will help you balance rate, cost, and long-term financial benefit.
Contact Indigo Mortgage
If you’re considering refinancing or simply want an honest second opinion, contact Ben Lucero and the team at Indigo Mortgage. For over two decades, Indigo Mortgage has been the trusted Albuquerque mortgage company helping homeowners refinance with confidence.
Call Indigo Mortgage today to learn more about your options, ask questions, and make sure you’re getting the best possible deal—without the hidden costs.