Which Banks Give You the Best Mortgage Rates?

No bank consistently offers the lowest mortgage rate. The cheapest lender changes with your credit score, down payment, loan type, and the points you pay, and it can change from one day to the next. A CFPB study of the 20 largest lenders in each market segment found that prices for similar loans often differed by about 0.5 percentage point of APR (annual percentage rate, a yearly rate that adds points and lender fees to the interest rate), so the reliable way to get the best rate is to collect Loan Estimates from at least three lenders on the same day and compare them line by line.

Is any one bank consistently the cheapest?

Federal data shows a wide spread between lenders for the same kind of borrower, without a single lender that always wins:

• CFPB, 2021 loan data. Looking at Home Mortgage Disclosure Act (HMDA) records for the 20 largest-volume lenders in each segment, the CFPB found price spreads, after adjusting for borrower and loan differences, of 41 basis points (0.41 percentage point) for loans sold to Fannie Mae and Freddie Mac, 61 for FHA loans, 64 for VA loans, and 57 for jumbo loans. A lender's size did not clearly predict whether its prices were high or low.
• Freddie Mac, 2010 to 2022. Comparing similar applications sent to Freddie Mac by different lenders on the same day, Freddie Mac found the average spread was under 0.20 percentage point from 2010 to 2021 and about 0.50 point in October and November 2022. Borrowers who applied with two lenders lowered their rate by about 0.10 point on average from 2010 to 2021 and about 0.20 point in 2022.

In dollars, the CFPB notes that on a $300,000 loan, the difference between 6.5% and 7% is about $100 a month. Freddie Mac estimated that in late 2022, borrowers who got two quotes could have saved as much as $600 a year, and those who got at least four could have saved more than $1,200 a year.

What is behind an advertised rate?

An advertised or online rate is a price for a sample borrower. Before you compare it with anything, find out what it assumes:

As an example of how these assumptions stack, the CFPB's Explore Interest Rates tool shows rate ranges for a $400,000 home and, unless a scenario says otherwise, assumes a 700 credit score, 10% down, a conventional 30-year fixed loan, between -0.5 and 0.5 discount points, and a 60-day lock. Changing just the credit score from 700 to 625 shifts the range of offers.

Points are common. The CFPB found that about 61% of home purchase borrowers paid discount points in September 2023, up from 31% in 2021, with a median of 1 point (1% of the loan amount) on purchase loans. A quote that looks low may include a point or more. Rate locks typically run 30, 45, or 60 days, and an extension can be expensive if your closing is delayed. How lenders build the rate from these factors is covered in how mortgage interest rates are calculated.

What do federal ad rules require next to the rate?

Regulation Z, the federal rule that carries out the Truth in Lending Act, sets these requirements for mortgage advertising:

• The APR must appear. An ad that states an interest rate must state it as an "annual percentage rate." For a loan secured by a home, the ad may also show the simple interest rate, but not more prominently than the APR.
• Only real terms. An ad may state only terms the lender actually offers or will arrange.
• More details when certain terms appear. If an ad states a down payment, the number of payments or repayment period, a payment amount, or a finance charge, it must also disclose the down payment, the repayment terms over the full loan, and the APR, and say whether the rate can rise after closing.
• Multiple rates or payments. If more than one rate or payment will apply over the loan, the ad must show each one and how long it applies, with equal prominence and close to the advertised rate. If an ad for a first mortgage shows a payment that leaves out taxes and insurance, it must say so and note that the actual payment will be higher.

Use the gap between the advertised rate and its APR as a quick test. A wide gap means the quote carries more upfront finance charges, such as points and lender fees, or mortgage insurance. Interest rate versus APR explains what the APR includes and when it misleads.

How do you benchmark a bank's quote?

Freddie Mac's Primary Mortgage Market Survey (PMMS) gives a weekly national average for conventional purchase loans. For the week of October 22, 2026, it was 7.32% for a 30-year fixed loan and 6.68% for a 15-year fixed loan, down from 7.40% and 6.71% the week before.

Read the benchmark with its limits:

• Strong borrowers only. The survey targets borrowers with good or excellent credit, 20% down, and an owner-occupied one-unit home. If your score is lower, you put less down, or you are buying a condo or a 2-4 unit home, expect to be quoted more.
• No points shown. Freddie Mac does not publish points and fees with the survey. A quote well under the average may include points, so check the Loan Estimate.
• A weekly average. Results come out Thursdays at noon Eastern time and average rates from the prior Thursday through Wednesday, while lenders' rates can change daily or even hourly.

If you have strong credit and 20% down and a no-point quote comes in well above the PMMS average, get more quotes before you apply.

How do you get the best rate from any lender?

1. Get quotes from at least three lenders of different types, such as a large bank, a credit union, and a non-bank lender or broker. Freddie Mac's estimates above show savings growing from two quotes to four. Bank versus non-bank lenders covers how each type tends to fit different borrowers.
2. Keep your applications within 14 days if you can. Recent FICO score versions count multiple mortgage credit checks within 45 days as one inquiry, but older versions use a 14-day window, and you may not know which version a lender uses. The CFPB notes that the effect of one more inquiry is small.
3. Request Loan Estimates on the same day for the same loan amount, loan type, term, and number of points, so the offers differ only in price.
4. Compare the rate, the APR, Section A (Origination Charges), Section B (Services You Cannot Shop For), and any lender credits in Section J on each Loan Estimate. Section B lists required third-party charges, and some of them, such as the appraisal, are left out of the APR. Choosing a lender walks through the side-by-side comparison.
5. Ask the higher-priced lenders to match the best written offer.
6. Lock the rate once you have chosen a lender and know your closing date. Locking your rate explains lock periods and extension costs.

For the credit score, down payment, and income rules behind most conventional quotes, see the requirements of a Fannie Mae or Freddie Mac loan.