As mortgage rates begin to drop, many veterans are getting new offers in the mail or online encouraging them to refinance their VA home loan. But before you sign anything, it’s crucial to shop your mortgage around. Unfortunately, not every lender has your best interest in mind—and some are taking advantage of veterans through inflated rates and excessive fees.
At Indigo Mortgage, we’ve been helping New Mexico veterans with VA home loans for more than 20 years. Here’s what’s really happening in the market right now—and how you can protect yourself.
Why Some Lenders Are Targeting Veterans
In the last couple of years, the number of VA mortgage applications has dropped dramatically. As a result, some national lenders are feeling the pressure to make up for lost revenue. To do that, they’ve turned to aggressive sales tactics—offering what looks like a “low” rate up front, but loading the loan with hidden costs or discount points that make the deal much worse than it appears.
These companies are counting on the fact that many veterans won’t shop around. They’re hoping you’ll see the advertised rate and think you’re getting a great deal, without digging into the fine print.
The Truth Behind “Low Rate” Offers
Here’s a real example from just last week:
I received a letter from a VA lender advertising a 4.99% interest rate—which, at first glance, sounds fantastic. But when I read the fine print, it told a very different story:
- The loan was only for a 10-year term
- The minimum loan amount was $350,000
- And it included three discount points
Three discount points on a $350,000 loan equals $11,500 just to buy the rate down. Add in other closing costs and fees, and a veteran could easily be paying around $18,000 in total closing costs. That’s money that could be better spent improving your home, paying down other debt, or simply staying in your pocket.
A Real Veteran’s Story
A local veteran recently called me after getting a loan offer from another lender. He decided to shop around and asked me for a comparison. After reviewing both proposals, I found that Indigo Mortgage could offer a rate almost three-quarters of a percent lower than what he had been quoted.
He went with our offer—and saved thousands over the life of the loan.
That’s why we always encourage veterans to shop their mortgage around. Whether you’re buying a new home or refinancing your current one, getting multiple quotes ensures you’re seeing the full picture—not just what one lender wants you to see.
How to Protect Yourself When Shopping
When it comes to your VA loan, a few simple steps can protect you from overpaying:
- Get quotes from at least two lenders – Make sure one is a local, trusted VA mortgage broker like Indigo Mortgage.
- Ask about fees and points – Don’t just compare rates; compare the total cost of the loan.
- Look at the loan term – A shorter term might have a lower rate, but it’s not always the best option for your budget.
- Read the fine print carefully – Watch for “discount points,” “origination fees,” and any other costs that increase your closing expenses.
- Trust your gut – If something feels rushed or too good to be true, it probably is.
Indigo Mortgage: Your Local VA Loan Expert
At Indigo Mortgage, we’ve proudly served New Mexico’s veterans for over two decades. We understand the VA loan process inside and out—and we’re here to make sure you get the best possible rate and terms, with no hidden surprises.
Our team is made up of local professionals who care about doing right by our veterans. We’ll explain every number, line by line, and ensure you understand your options before you make a decision.
Talk to Indigo Mortgage Today
If you’re a veteran looking to purchase or refinance a home, don’t go it alone. Let Indigo Mortgage help you compare offers and find a fair deal.
Call us today at (505) 836-5700
Bottom Line
Mortgage rates may be coming down—but the only way to make sure you’re truly getting a good deal is to shop your mortgage. Don’t let high-pressure sales tactics or hidden fees cost you thousands.
Talk to your local, trusted VA mortgage experts at Indigo Mortgage—where honesty, integrity, and service still matter.