How to Compare Mortgage Rates (and Actually Save Money)

A mortgage is probably the largest loan you'll ever take out, and small differences in its terms add up to large amounts of money. Yet many buyers get a quote from one lender, maybe two, and take whatever is offered. Shopping carefully is one of the most valuable things you can do in the whole home-buying process, and it mostly takes a few phone calls and some careful reading.

This guide explains what to compare, how to read the official forms lenders must give you, and how to shop without damaging your credit score.

Why shopping matters: a worked example

As of October 15, 2026, the average 30-year fixed rate in Freddie Mac's survey was 7.40%. That's an average; individual offers vary with your credit, down payment, loan type, points and the lender itself.

Consider a $369,630 loan (10% down on the national median price of $410,700). Compare two offers a quarter of a percentage point apart:

That 0.25-point difference is worth about $63 a month, or roughly $22,585 over the full term if you keep the loan that long. Few hours of work pay that well.

The rate isn't the whole price

Two loans with the same rate can cost very different amounts. When comparing offers, look at:

• Interest rate: sets your monthly principal-and-interest payment.
• APR (annual percentage rate): combines the rate with certain fees, spread over the loan term. It's useful for comparing loans of the same type and term, but it assumes you keep the loan for its full life.
• Discount points: upfront fees paid to lower your rate. One point equals 1% of the loan amount. The CFPB explains points, and our points guide shows how to work out the break-even.
• Lender fees: origination, underwriting and application fees.
• Mortgage insurance: PMI on conventional loans with less than 20% down, or mortgage insurance premiums on FHA loans.

A quote with a low rate and two points may cost more than a slightly higher rate with no points, depending on how long you keep the loan.

Use the Loan Estimate to compare apples to apples

When you apply for a mortgage, the lender must give you a Loan Estimate within three business days. It's a standardized three-page form, so you can line offers up next to each other. The CFPB's Loan Estimate explainer walks through each section.

Key places to look:

1. Page 1, Loan Terms: the rate, monthly principal and interest, and whether there's a prepayment penalty or balloon payment.
2. Page 1, Projected Payments: includes estimated taxes, insurance and mortgage insurance.
3. Page 2, Closing Cost Details: section A shows origination charges, including points. These are the lender's own charges and the best place to compare lenders directly.
4. Page 3, Comparisons: shows total costs over the first five years and the APR.

To compare fairly, ask each lender for an estimate on the same day, for the same loan type, term and down payment, and with the same number of points (or zero). Rates change daily, so estimates from different days aren't comparable.

Shopping won't wreck your credit

Many people avoid shopping because they worry that each lender's credit check will lower their score. The CFPB notes that credit scoring models generally treat multiple mortgage inquiries within a short window as a single inquiry, so you can shop. The window varies by scoring model from about 14 to 45 days, so the safest approach is to do your rate shopping within two weeks. The CFPB's guide to buying a house recommends shopping with several lenders.

A practical rate-shopping process

1. Check your credit first. Get your free reports at AnnualCreditReport.com and fix errors before you apply. See our credit score guide.
2. Get three to five quotes, mixing types: a large bank, a credit union, an online lender and a mortgage broker.
3. Request Loan Estimates on the same day with identical assumptions.
4. Compare section A and the rate together, then the five-year cost on page 3.
5. Ask lenders to match or beat a competing offer. Many will.
6. Lock your rate once you have an accepted offer and a closing date. Our rate lock guide explains how.

Watch for these red flags

• A quote that's far below every other offer with no points; ask what it assumes.
• Pressure to sign or lock before you've seen a Loan Estimate.
• Fees that appear on the Closing Disclosure that weren't on the Loan Estimate. The CFPB's rules limit how much certain fees can rise.
• A lender who won't put the offer in writing.

Common questions

Should I use a mortgage broker or go directly to lenders? Either can work. A broker compares several wholesale lenders for you and is paid by you or the lender; a direct lender offers only its own products. Including at least one of each in your comparison gives you a fuller picture.

How often do rates change? Lenders can reprice daily or even within a day, based on market conditions. That's why quotes from different days aren't directly comparable, and why you'll want to lock once you're under contract.

Is the lowest APR always the best deal? Not necessarily. APR assumes you keep the loan for its full term. If you expect to sell or refinance within a few years, a loan with lower upfront costs may be cheaper overall even if its APR is slightly higher. Compare the five-year cost on page 3 of the Loan Estimate alongside APR.

Practical takeaways

• Small rate differences mean big money over a mortgage's life; shopping is worth the effort.
• Compare rate, points and lender fees together, not the rate alone.
• Use Loan Estimates pulled the same day with identical assumptions.
• Do all your shopping within about two weeks to limit credit score impact.
• Track today's averages on our rates page and model payments in the mortgage calculator.

Sources

• Freddie Mac Primary Mortgage Market Survey
• CFPB: What is a Loan Estimate?
• CFPB: What are discount points?
• CFPB: Buying a house
• CFPB: Explore interest rates

Rates are as of the dates noted and will change. This article is for education only and is not financial advice.