A Freddie Mac study found that borrowers who got two rate quotes saved an average of $1,500 over the first five years of their loan. Those who got five quotes saved $3,000. Compounded over 30 years, the gap is far larger.
Most buyers don’t shop. They take the first quote — usually from their bank.
Here’s where rates sit right now:
Rates are indicative and may not reflect your individual quote.
Rate vs. APR: The Number That Actually Matters
The interest rate is the base cost of borrowing. The APR (Annual Percentage Rate) includes the rate plus lender fees — origination charges, points, underwriting fees — expressed as a single annualized number.
Two quotes at 7.00% can have very different APRs:
| Lender | Rate | Origination fee | APR |
|---|---|---|---|
| Lender A | 7.00% | $0 | 7.08% |
| Lender B | 7.00% | $4,000 | 7.29% |
Same rate, but Lender B costs $4,000 more upfront. Always compare APR when the nominal rates look identical.
Points: Paying to Buy a Lower Rate
A mortgage point is 1% of the loan amount paid upfront in exchange for a lower rate — typically 0.125%–0.25% lower per point. Whether this makes sense depends on your break-even timeline.
On a $400,000 loan:
- 1 point = $4,000 upfront
- Rate drops from 7.25% to 7.00%
- Monthly savings: ~$62
- Break-even: ~65 months (about 5.4 years)
If you plan to sell or refinance before five years, paying points is usually a bad trade. If you expect to stay 10+ years, it often pencils out.
What to Request From Every Lender
When you contact a lender for a quote, ask for the Loan Estimate — a standardized 3-page form lenders are required to provide within 3 business days of receiving your application. It makes comparison straightforward because every line item uses the same federal terminology.
Key items to compare across Loan Estimates:
- Section A — Origination charges (fees paid directly to the lender)
- Section B — Services you can’t shop for (appraisal, credit report)
- Interest rate and whether it’s locked
- APR (Page 3, top right)
- Total loan costs (Page 3, bottom)
One rule: always compare quotes locked at the same rate on the same day. Rates change hourly — a quote from Tuesday is meaningless next Monday.
How Many Lenders Should You Contact?
Three to five is the sweet spot. More produces diminishing returns.
Include at least one of each type:
- A mortgage broker — shops multiple wholesale lenders with one application
- Your bank or credit union — existing relationships sometimes unlock pricing
- A direct online lender — typically lowest overhead, most competitive on conventional loans
The Credit Inquiry Fear That Stops Most Buyers
Many buyers stop at one quote because they fear multiple hard pulls will hurt their credit score. This fear is outdated.
FICO and VantageScore treat all mortgage-related hard inquiries within a 14–45 day window as a single inquiry. Shop aggressively within a 2–3 week period and your score takes no more damage than a single application.
Apples-to-Apples Checklist
Before comparing quotes, verify each is priced for identical inputs:
- ☐ Same loan amount
- ☐ Same property type (primary vs. investment)
- ☐ Same loan term (30-yr vs. 15-yr)
- ☐ Same credit score tier
- ☐ Same lock period (30-day vs. 60-day locks price differently)
- ☐ Same down payment percentage (affects PMI tier and rate pricing)
One lender quoting a 15-year loan when the others quoted 30-year is comparing oranges to avocados.
See What Each Quarter-Point Costs You
Use the Loan Comparison Calculator to enter two rates side-by-side and see exactly how much each difference costs per month and over the full loan term.