12 Questions to Ask Your Mortgage Lender
A mortgage quote is designed to look simple. These twelve questions un-simplify it — politely, and before you've signed anything.
By the CalcNotebook team · Last reviewed: July 2026
About the real cost
- What's the APR, not just the rate? APR folds most fees into one comparable number. Two loans with the same rate can differ meaningfully in APR — compare loans by APR and total cost, never by rate alone.
- What exactly is in the closing costs? Ask for the Loan Estimate line by line: origination fee, points, appraisal, title. "About 2–5% of the loan" hides thousands in variation.
- Am I paying points, and what's the break-even? Points buy a lower rate upfront. Worth it only if you keep the loan past the break-even — make them show you that month.
- Total interest over the life of the loan? The single most sobering number, and it's rarely volunteered.
About flexibility
- Is there a prepayment penalty? You want an unambiguous "no" — in writing. Extra payments are your best cost-cutting tool; a penalty neutralizes it.
- How do extra payments get applied? They should hit principal, automatically, not sit as "prepaid installments". Ask how to mark them.
- If rates drop, what does refinancing with you cost? Some lenders waive parts of the fees for existing customers; knowing now saves negotiating later.
About PMI and the rate lock
- When does PMI come off, and who has to act? Automatic at 78% loan-to-value, on request at 80% — but "on request" means you must ask. (Full breakdown in our PMI guide.)
- How long is the rate lock, and what does an extension cost? 30–60 days is typical; underwriting delays are common — know the price of running over.
- Does the lock float down if rates fall before closing? Some do, some charge for it, most don't unless you ask.
About the process
- Will my loan be sold, and does servicing change? Normal and harmless money-wise, but your payment portal and contacts may change — good to expect it.
- What would make this deal fall through? An honest lender will name the risks in your file. Their answer tells you as much about them as about the loan.
The meta-advice
Get quotes from at least two or three lenders on the same day (rates move daily), and let each know you're comparing. The questions above aren't confrontational — they're the questions the lender's best customers ask. Being one of them is free.