What half a point really costs
Rate differences look tiny and cost a fortune. On a $475,000 loan, the gap between 6.5% and 6.0% is about $156 a month — and roughly $56,000 over 30 years. That's why shopping lenders is the highest-paid hour in the mortgage process: studies keep finding that borrowers who get even two or three quotes save thousands. Enter two rates above and see the monthly difference, the lifetime difference, and how the gap compounds at 5, 10 and 20 years.
Rate vs. APR — read both, trust neither alone
The rate sets your payment; the APR bundles the rate with most lender fees to approximate a total cost. A lender with a low rate and high fees can share an APR with a lender quoting the opposite. Compare payments with this tool, compare fees on the Loan Estimates, and be suspicious of any quote that's dramatically better than the pack — teaser math usually hides in points or lock terms.
Should you buy points?
A discount point costs 1% of the loan and typically trims the rate by about 0.25%. Whether that's a deal depends on how long you keep the loan: divide the point cost by the monthly savings to get your break-even in months. Keep the mortgage well past break-even and points pay for themselves; sell or refinance early and the lender keeps your money. Run both versions above as Rate A and Rate B — the table shows exactly where the lines cross.
How many lenders should I get quotes from?
At least three, on the same day if possible — rates move daily, so same-day quotes are the only true comparison. Include a mix: a bank, an independent broker, maybe a credit union.