Refinancing, are you being told the truth when they offer a super low rate and no closing costs

Headline ads often quote temporary buydowns, ARM teaser rates, or perfect-credit scenarios that very few borrowers qualify for.The real, fully indexed 30-year fixed rate is meaningfully higher once you look at actual pricing.“No closing costs” usually means one of three thingsLender credits: The borrower pays through a higher interest rate.Seller concessions: Only possible if the seller agrees — not universal.Costs rolled into the loan: Still paid, just financed over time.Rate buydowns are being marketed as permanent2-1 or 1-0 buydowns lower payments only for the first year or two.Many borrowers don’t realize their payment will increase later.AI-driven and online lenders amplify the issueAutomated platforms advertise best-case pricing without explaining:LLPAsDTI adjustmentsCredit overlaysProperty type impactsWhat customers should be told instead (plain truth)There is always a trade-off between rate and costs.If closing costs are “covered,” the rate will be higher.If the rate is lower, the borrower is paying for it upfront.There is no free money — just different ways to pay.How professionals are reframing the conversationShowing side-by-side scenarios:Low rate / higher costsHigher rate / lender creditFocusing on total cost over time, not just the rateExplaining break-even points clearlyGiven your background in mortgages and rate behavior, this kind of misrepresentation usually shows up late in the process, when the borrower sees the LE and feels misled.If you want, I can help you:tune in and learn https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show