With talk of the Federal Reserve cutting rates, the mortgage market is heating up again. Borrowers across Albuquerque, Rio Rancho, and all of New Mexico are re-entering the market, hoping to secure the lowest mortgage rates available. But as Ben Lucero of Indigo Mortgage warns, not everything that glitters is gold.
Sometimes that shiny object — that eye-catching low rate — may not be what it seems.
Why Borrowers Need to Be Careful With “Too-Good-To-Be-True” Rates
As Ben explains, many lenders are advertising incredibly low mortgage rates to grab attention. But most borrowers don’t realize that these rates often come with heavy costs hidden behind the scenes, usually in the form of steep discount points or rate buy-downs.
Recently, Ben has met with several New Mexico borrowers who were comparing rates. On paper, the offer from another lender looked unbeatable — until they took a closer look.
What they discovered:
- The attractive low rate came with thousands of dollars in discount points
- The lender never disclosed upfront how much the rate actually cost
- The total fees made the loan far more expensive than the borrower expected
- In some cases, the rate wasn’t even better once the buy-down costs were factored in
This is why Ben emphasizes: don’t chase a shiny object without knowing what’s behind it.
Understanding Discount Points and the True Cost of Your Rate
A mortgage rate is only part of the picture. The real question is:
“What is it costing you to get that rate?”
Discount points are fees paid at closing to lower your interest rate. While this can be beneficial in some situations, lenders sometimes use discount points to make their advertised rates look unrealistically low.
Ben recommends that every borrower compare:
- The interest rate
- The number of discount points required
- The total fees on the Loan Estimate
- The long-term cost vs. short-term savings
When you compare all of these together, the “shiny object” rate often loses its sparkle.
Why Shopping With a Local, Trusted Lender Matters
The best protection for borrowers is to shop smart and work with a trusted mortgage expert who is on their side — not a big national call-center lender pushing flashy numbers.
At Indigo Mortgage, Ben Lucero helps borrowers evaluate:
- Whether the rate is truly competitive
- Whether discount points make sense for their situation
- Whether a refinance or purchase loan is the right financial move
- Whether the lender is being honest about total loan costs
As a long-time, locally owned mortgage broker in Albuquerque, NM, Indigo Mortgage compares multiple lenders to find the best overall value — not just the flashiest rate.
How to Shop Your Mortgage Safely
Ben recommends the following steps for all borrowers:
- Always request a Loan Estimate to compare true costs
- Look beyond the rate and examine all fees and points
- Ask whether the lender is charging for a temporary or permanent buydown
- Compare at least two options before deciding
- Work with a local mortgage broker who explains everything clearly
By following these steps, borrowers can avoid costly surprises and find the loan that truly benefits them.
Talk With Ben Lucero for Honest, Local Mortgage Guidance
If you want help comparing interest rates or understanding discount points, Ben Lucero is here to guide you. He works for you, not the lenders, and his mission is to help New Mexico borrowers make informed, confident decisions.
Don’t get distracted by shiny objects. Get the facts. Get the right mortgage. And get guidance from a trusted local expert who truly has your best interests at heart.