Compare Mortgage Rates

Learn how our experts identify and compare the essential factors of mortgage rates to find the best option for you. From types of mortgage and mortgage rates to mortgage-related fees and reviews, we research everything you need to know to make a decision.
Disclosure: We receive advertising revenue from some partners. Learn more.
vsSelect 2 companies to compare

How we Compare Mortgage Rates

Types of Mortgage - 20%
Mortgage Rates - 20%
Qualification - 20%
Mortgage-related fees - 15%
Reviews - 25%

Types of Mortgage Compared

Mortgages are not one-size fits all, and there are a number of different types of home loans that have their own unique qualities.

 

Fixed Rate Mortgage (FRM) is the most common type of home loan, and the most straight-forward to understand. Payments for Fixed Rate Mortgages are traditionally made over 15 or 30 years, but some lenders may also offer 10 or 20 years terms as well. As the name implies, the interest rate is a set amount and your monthly payments will remain the same throughout the life of your mortgage, making it easy to plan payments. Mortgage lenders offering Fixed Rate loans oftentimes require at least a 10-20% down payment (percentage of the house purchase price paid by the borrower upfront) and applicants must have good to excellent credit and be able to prove they are financially stable in order to qualify.

Adjustable Rate Mortgages (ARM) is a less popular option, which makes purchasing a home more affordable initially by offering lower down payments and lower mortgage rates. Payments remain low for a specific period of time, and then will fluctuate according to market rates. As a result of the changing interest rate, Adjustable Rate Mortgages are considered to be riskier, and you may end up paying more in interest down the road than you would with a Fixed Rate Mortgage. Like fixed rate mortgages, adjustable rate mortgages are traditionally for 15 or 30 years, but other options may be available. Adjustable Rate Mortgages also have down payment minimums that range between 5-20%, and applicants will need to have good to excellent credit and prove financial stability in order to qualify.

FHA Loans – If you are unable to afford a large down payment, have good (but not excellent) credit, or are unable to get mortgage insurance, an FHA loan may be a good option for you. FHA loans are insured by the Federal Home Administration, which essentially means that the government will back your loan, lessening the risk for lenders in the event you are unable to make your mortgage payments. FHA loans still have a down payment requirement of 3.5% of the purchase price of the home, and still require applicants to have good credit, but because of the lower requirement level are considered the easiest home loan to get. Because of the lower down payment and credit requirements, FHA loans are also a popular option for first-time homebuyers. But, be aware that with an FHA loan, the house you intend to purchase will need to pass inspection from an appointed FHA inspector. If the house fails to pass the inspection, the required improvements may have to be made before the sale can be finalized, or you may have to walk away from the house all together.

VA Loans – If you are, or have been a member of the US Armed Forces, you may qualify for a VA Loan. And if you do, we suggest taking the time to explore this option further. A VA Loan is a government-backed mortgage (insured by the Department of Veteran Affairs), which is considered a benefit of service, and is the only loan type that does not require a down payment. A credit requirement is still a factor, but may be more flexible than with other loan types. Additionally, since the government is insuring this loan, the house must meet certain requirements and pass an inspection performed by an appointed VA certified inspector. Like with a FHA loan, if the house fails the inspection, improvements may need to be made before the sale is finalized, or you may have to walk away from the home all together.  

 

The best type of loan really depends on the individual situation of the borrower, so we look for mortgage lenders and brokers who offer a variety of options to choose from. Companies who offer mortgages for different housing types will also score better in this section than those with more limited offerings.

LendingTreeSoFi MortgageLoan DepotQuicken LoansRate MarketplaceGuide to LendersFirst Internet Bank of IndianaAmeriValue
Fixed Rate
Home Appraisal / Inspection required?
Min. Credit ScoreDepends on LenderNone580620Depends on LenderDepends on Lender
Loan termsUp to 30 YearsUp to 30 YearsUp to 30 Years15 /30 Year Fixed Conventional and JumboUp to 30 YearsDepends on LenderUp to 30 YearsDepends on Lender
Adjustable Rate
Inspection required?
Minimum Credit ScoreDepends on LenderNone580620Depends on LenderDepends on Lender
Loan terms -Adjustable RateUp to 10 Years10 or 20 Years3, 5, 7, 10 Years5 Years5/1 ARMDepends on LenderDepends on Lender
FHA
Minimum Credit Score - FHA580580Depends on LenderDepends on Lender
Loan terms - FHA15 Years Fixed / 30 Years Fixed15 Years Fixed / 30 Years Fixed10, 15, 20, 30 Years Fixed15, 20, 25, 30 Years FixedDepends on LenderFHA 30-Year Fixed RateDepends on Lender
Interest-Only
VA
Loan terms - VA5/1 ARM, 15 Years Fixed, 30 Years Fixed15, 30 Years Fixed, VA 5/1 ARMDepends on LenderVA 30- Year Fixed Rate

Mortgage Rates Compared

Mortgage rates are based on the lender, the strength of your credit and other application information, type and term of the home loan you select.

Different lenders may be able to offer different mortgage terms or rates, so it’s in your best interest to compare offers from different companies. Additionally, comparing rates may also help you decide which loan type is the best fit for you.

The strength of your loan application not only determines whether or not you are approved for a mortgage, but also impact the interest rate you’ll pay. Applicants with excellent credit scores, a long history of responsible borrowing and on time debt repayments, balanced monthly spending, and steady income will probably receive more favorable interest rates. And those who have strong enough applications to be approved for a mortgage, but just barely, may find themselves paying much higher interest rates.

The type of loan you select also plays a part in how much interest you’ll pay over the life of the mortgage. For instance, Adjustable rate mortgages will start off with lower interest rates than fixed rate mortgages, but over time, the interest rate will fluctuate which may mean paying more or less in interest. And, VA Loans often come with lower interest rates than other loan types, as they are considered a benefit for those who have served in the US military.

The term of the loan will also impact the interest rate. For example, if you select a fixed rate mortgage with a 15-year term, you’ll probably pay a lower interest rate than if you selected a 30-year term for the same type of mortgage.

When looking at mortgage interest rates, you’ll want to look at the APR, or Annual Percentage Rate. The APR is the interest rate combined with any addition fees charged by the lender for taking out the mortgage, which is added to your monthly payments.

Since the mortgage rates are so dependent on the borrower, we look at the lowest interest rates offered by the mortgage lenders and brokers we review when scoring for this section. Those that offer lower starting interest rate receive higher scores than those with higher starting interest rates.

LendingTreeSoFi MortgageLoan DepotQuicken LoansRate MarketplaceGuide to LendersFirst Internet Bank of IndianaAmeriValue
Fixed Rate APR2.650%3.394%-4.51%3.08%3.68%3.01%3.12%3.59%
Fixed Rate Downpayment20%10%Depends on LenderDepends on LenderDepends on Lender
Adjustable Rate APR3.170%3.23%3.63%Depends on LenderDepends on Lender
Adjustable Rate Downpayment10%Depends on LenderDepends on Lender
FHA APR3.16%3.539%-5.792%Depends on Lender4.23%Depends on Lender
FHA Downpayment3.50%3.50%Less than 20%Depends on LenderDepends on Lender
VA APR2.626%-3.25%3.42%Depends on Lender3.64%Depends on Lender
VA DownpaymentNoneDepends on LenderBelow 20% Depends on Lender

Qualification Compared

Whether or not you qualify for mortgage depends on several factors that will help the lender determine your ability to repay the loan. Mortgage lenders will look at your credit scores, credit history, financial stability, employment and income situation, and other assets you have (like savings accounts, investment portfolios or retirement accounts).

Your credit scores and reports will show how you’ve managed past debt with lenders and give the lender a good idea of how you’ll manage your debt with them. Also, lenders will look at your debt-to-income ratio before extending a loan approval. If you already have a significant amount of debt, you may need to pay some of it off before qualifying for a mortgage.

Mortgage lenders will also consider your employment, other income and current assets to ensure you’ll be in a situation where you can afford the monthly payments. Don’t be surprised if you lender also requests copies of your bank statements to make sure you are financially stable and understand how to budget your income and expenses. Most lenders will also ask you for your most recent paystub for employment and income verification, as well as your W2s and tax returns from the last 2 years.

The stronger your application, the better chance you have of being approved. Lenders are usually happy to talk to potential borrowers about their situation and will provide advice on how to make themselves better candidates for a mortgage.

In this section, we look for mortgage lenders who have flexible mortgage requirements and have a high rate of loan approvals.

Mortgage Rates with the Best Qualification:  Quicken Loans QualificationRocket Mortgage Qualification
LendingTreeSoFi MortgageLoan DepotQuicken LoansRate MarketplaceGuide to LendersFirst Internet Bank of IndianaAmeriValue
Credit Check
18+ years of age
"US Citizen or Permanent Resident "
Social Security Number
Drivers License
Home Address
Phone Number
Email Address
Financial Account Statements
Monthly Income (after tax)
W2s/Tax Returns
Bankruptcy Disqualification
Employment Requirements
Employment Duration Requirement

Mortgage-related fees Compared

The true cost of buying a home does not end with your monthly payments. Other costs includes closing costs, taxes and other lender related fees.

Closing Costs on average are 2 to 5 percent of the purchase price of the home, and are usually paid at the time of closing. Depending on the lender and type of loan you are looking for, you may be able to roll your closing costs into the loan amount, however remember that you’ll be paying interest on this every month.

Private Mortgage Insurance (PMI) is a requirement for fixed rate and adjustable rate mortgages when the down payment is less than the ideal amount (20%). PMI is added protection for the lender in the event that you are unable to make your mortgage payments. In most situations, this is automatically added into your monthly payments.

Discount Points are usually paid at closing, and allows homebuyer’s the chance to lower the interest rate by paying more upfront. One point, usually translates to one percent of the cost of the house. Therefore, if you buy a $200,000 house, one point would be $2,000. The more points you pay, the lower the interest will be.

 

Other fees may include:

  • Origination fee
  • Appraisal fee
  • Credit report
  • Recording fee

What is a Good Faith Estimate?

The law requires that a Good Faith Estimate be provided to homebuyers within three days of a loan application. This contains an itemized list of the expected closing costs, or amount due at closing. Most lenders are happy to go over a good faith estimate with you if you have questions, but remember this is an estimate and it is subject to change.

Mortgage Rates with the Best Mortgage-related fees:  SoFi Mortgage Mortgage-related feesLendingTree Mortgage-related fees

Reviews Compared

Last, we look at reviews on ConsumersAdvocate.org and other consumer review sites across the internet to see what consumers like you have said about the mortgage lenders and brokers we review. Those with more favorable reviews that demonstrate honest policies and practices, offer fair mortgage terms and rates, and have a reputation for great customer service receive higher ratings in this area. 

Mortgage Rates with the Best Reviews:  SoFi Mortgage ReviewsQuicken Loans ReviewsLendingTree Reviews

Full Mortgage Rates Comparison

Types of MortgageMortgage RatesQualificationMortgage-related feesReviews
LendingTree Mortgage10.09.09.99.810.0
SoFi Mortgage Mortgage9.010.09.010.010.0
Rocket Mortgage10.09.510.09.09.0
Loan Depot Mortgage10.09.59.59.09.4
Quicken Loans Mortgage9.09.010.09.010.0
Rate Marketplace Mortgage Refinance9.49.39.98.07.0
Guide to Lenders Mortgage10.09.28.78.96.0
First Internet Bank of Indiana Mortgage9.78.87.98.07.6
AmeriValue Mortgage Refinance9.79.58.48.36.4
PHH Mortgage7.09.08.08.07.0
Nationstar Mortgage9.09.08.08.05.0
Citi Mortgage9.09.07.06.05.0
Wells Fargo Mortgage9.09.07.06.04.0
Chase Bank Mortgage9.09.07.05.03.0
Bank of America Mortgage9.09.07.05.02.0
U.S. Bank Mortgage9.09.07.05.01.0
vsSelect 2 companies to compare