Today's mortgage rates at Lower

What Affects Mortgage Rates

The rates on this page are based on a set of assumptions. Your personalized mortgage or refinance rate might be different.

Market conditions establish the general level of mortgage rates, but your loan details and personal financial situation determine where you fall within that market. Two borrowers applying on the same day can receive different pricing even when they are buying homes at similar prices.

Credit Score

Credit score is one of the clearest pricing factors. A stronger credit profile generally represents less repayment risk, which can lead to better pricing. Credit score can affect both mortgage eligibility and the rate a borrower is offered.

The relationship is not one universal rate adjustment. Loan type, loan-to-value (LTV) and other factors interact with credit. If you are still preparing to apply, understanding credit score requirements can help separate loan eligibility from the pricing effect of your score.

Down Payment And Loan-To-Value Ratio

Your down payment affects the loan-to-value ratio, or LTV. A $400,000 home with $80,000 down has an 80% LTV. The same home with $40,000 down has a 90% LTV.

Lower LTV generally means the lender is financing a smaller share of the property's value. That can affect rate and fees, particularly on conventional loans. It can also affect mortgage insurance, which changes the overall cost even when the note rate stays the same.

Loan Term

A 15-year mortgage and a 30-year mortgage do not necessarily carry the same rate. Shorter terms often have lower rates, but the monthly payment is usually higher because you are repaying the principal much faster.

The interest rate alone does not tell you which term is cheaper for your budget. Compare payment and lifetime interest together.

Occupancy And Property Type

A primary residence can be priced differently from a second home or investment property.

Property type matters too. A single-family primary residence, condominium, two- to four-unit property and manufactured home can carry different adjustments depending on the program and lender.

That's one reason online rate tables like ours need assumptions. A rate based on a primary residence at 70% LTV should not be read as the rate for an investment property at 90% LTV.

Points And Lender Credits

Rates and upfront costs move together. Paying discount points generally means paying more at closing for a lower rate. Lender credits usually work in the opposite direction: you accept a higher rate in exchange for help with closing costs.

According to the CFPB, one discount point equals 1% of the loan amount, but the rate reduction you receive for a point is not fixed. It varies with the lender, loan and market. Our discount points calculator can help you compare the upfront cost with the monthly savings.

Loan Amount

Loan size can affect which product you use and how it is priced. A conforming loan fits within the applicable Fannie Mae and Freddie Mac loan limits. A jumbo loan exceeds those limits and is priced under lender or investor rules rather than standard conforming pricing.

Mortgage Rates By Loan Type

Different mortgage programs can carry different rates because the risk, insurance and guarantee structure changes from one program to another. The lowest note rate is not automatically the lowest-cost loan, so it helps to compare all of your loan options before choosing one.

• Conventional mortgages are generally financed without a federal government guarantee. Pricing can be sensitive to credit score, LTV, occupancy and other characteristics. If the LTV is high enough, private mortgage insurance can also affect the monthly cost.

• FHA mortgages are insured by the Federal Housing Administration. They can sometimes carry lower note rates than conventional loans for the same borrower, but FHA mortgage insurance affects the total cost. Comparing mortgage insurance requirements by loan type is useful when the advertised rates are close.

• VA mortgages are backed by the Department of Veterans Affairs for eligible borrowers. VA loans do not require monthly mortgage insurance, although a funding fee applies to many borrowers unless they qualify for an exemption.

• USDA mortgages are guaranteed by the Department of Agriculture for borrowers who meet income and property location requirements. They don't require a down payment or private mortgage insurance, but they do carry upfront and annual guarantee fees.

• Jumbo mortgages exceed the applicable conforming loan limit. Pricing is set by the lender or investor and can respond differently to credit, reserves, property type, loan size and LTV.

• Adjustable-rate mortgages start with a fixed rate for an initial period, then adjust on a set schedule. Starting rates are often lower than 30-year fixed rates, but the payment can rise after the first adjustment.

If you are refinancing your mortgage, rates can also differ from purchase rates. A rate-and-term refinance and a cash-out refinance are different transactions, and taking cash out can affect pricing and the maximum LTV available.

Mortgage Rate Pages By Product

You can learn more about product specifics by clicking on a loan type below.

Interest Rate Vs. APR: Which Should You Compare?

Look at both. The interest rate tells you the percentage charged on the mortgage principal. APR is a broader annualized measure that includes the interest rate plus certain charges associated with getting the loan.

The CFPB says that APR can include points, mortgage broker fees and other charges. That is why APR is usually higher than the note rate.

APR is particularly helpful when two offers have similar interest rates but different upfront costs. A loan advertising a lower rate may require more points. Another loan may carry a slightly higher rate but substantially lower closing costs.

APR still should not be the only number you use. It assumes a particular way of annualizing the loan costs, and comparisons can become less straightforward across different loan types or adjustable-rate products. Review the rate, APR, points, cash to close and monthly payment together.

How To Compare Mortgage Rate Offers

The cleanest comparison uses the same loan scenario at roughly the same time. Mortgage pricing can move during the day, so a quote from Monday morning and another from Wednesday afternoon may reflect different market conditions rather than a meaningful difference between lenders.

Keep the loan structure consistent too. Compare the same loan amount, down payment, property use, term and rate-lock period. If one quote assumes 20% down and another assumes 10%, or one includes two discount points while another includes none, the headline rates are not directly comparable.

Start with the note rate and APR, then look at points and lender credits. A lower rate can be paired with more upfront cost. A higher rate may come with a credit that reduces cash due at closing. Neither structure is automatically better. The right tradeoff depends on how long you expect to keep the loan and how much cash you want to use upfront.

Then compare the monthly principal-and-interest payment and the cash-to-close amount. Mortgage insurance, funding fees or guarantee fees can also change the overall cost depending on the loan program. If you are comparing fixed and adjustable rates, look at how and when an adjustable-rate mortgage can adjust rather than comparing only the starting rate.

Finally, check whether the rate is locked. The CFPB recommends comparing Loan Estimates for the same kind of loan and notes that rates can change daily. A written Loan Estimate gives you a better basis for comparison than a rate shown without the rest of the loan terms.

What To Do After Comparing Mortgage Rates

Once you have a rate scenario, translate it into dollars. A small change in rate can affect both the monthly principal-and-interest payment and the amount of interest paid over the life of the loan. Our mortgage payment calculator makes that comparison easier.

Then compare the full loan rather than the rate alone. Look at the down payment, mortgage insurance or program fees, closing costs, points, lender credits and lock period. Two loans with the same rate can have materially different upfront costs.

When you are ready to compare actual offers, Loan Estimates provide a standardized way to review the terms. The CFPB recommends comparing offers for the same type of loan so the rate, APR and costs are easier to evaluate side by side.

Preapproval is separate from simply checking rates, and it's usually the first step when you're ready to buy a home. It involves a lender reviewing your financial information to estimate what you may qualify to borrow. If timing matters, our guide to how long preapproval takes explains what can speed up or delay the process.

The Bottom Line

Mortgage rates move with financial markets, but the rate you are offered is personal to the loan. Credit score, LTV, term, occupancy, property type, loan amount, points and lock period can all change the pricing.

Use posted rates as a starting point and read the assumptions attached to them. When comparing actual mortgage offers, look at the interest rate, APR, points, closing costs and monthly payment together, and use our mortgage calculators to run the numbers. The lowest note rate is not automatically the lowest-cost loan.

Frequently Asked Questions

How Often Do Mortgage Rates Change?

Mortgage rates can change daily and sometimes more than once in the same day. Lenders adjust pricing as Treasury yields, mortgage-backed securities and other market conditions move. A posted rate is therefore a snapshot, not a permanent offer.

Does The Federal Reserve Set Mortgage Rates?

No. The Federal Reserve sets a target range for the short-term federal funds rate, not 30-year mortgage rates. Fed policy still influences mortgage markets because it changes expectations for inflation, economic growth and future interest rates.

Why Is My Mortgage Rate Higher Than An Advertised Rate?

Advertised rates are based on specific assumptions. Your credit score, down payment, LTV, property, occupancy, loan amount, points and lock period can all change the rate you qualify for. Compare your scenario with the assumptions shown beside the advertised rate.

What Is The Difference Between A Mortgage Rate And APR?

The mortgage rate is the percentage charged for borrowing the principal. APR is a broader measure that includes the interest rate plus certain loan costs such as points and fees. APR can help compare offers that use different upfront pricing.

Do Mortgage Rates Vary By State?

They can. Mortgage rates are primarily driven by national financial markets, but lender competition, local operating costs, loan sizes and product availability can affect quotes from one state to another. Property taxes and homeowners insurance vary by state too, but those costs affect the monthly payment rather than the mortgage rate itself.

How Much Does Credit Score Affect A Mortgage Rate?

There is no single rate adjustment that applies to every borrower. In general, stronger credit can qualify for better pricing, but credit interacts with LTV, loan type and other factors. The effect is specific to the loan scenario and lender.

Should You Pay Discount Points?

It depends on the upfront cost, the rate reduction and how long you expect to keep the mortgage. Paying points can lower the rate and monthly payment, but it takes time for those savings to recover the additional cash paid at closing.

How Long Can You Lock A Mortgage Rate?

Thirty-, 45- and 60-day locks are common, and other periods may be available depending on the lender and loan. Longer locks can cost more. If you are comparing timelines, see how long you can lock a rate and what happens if the lock expires before closing.