Mortgage Rates, Explained

What moves your rate

• Your credit score. Pricing improves in tiers as your score climbs, so the jump from the 660s to the 740s can be worth real money.
• Down payment / loan-to-value. More equity generally means a better rate and lower or no mortgage insurance.
• Loan program and term. Conventional, FHA, and VA price differently, and a 15-year is typically lower than a 30-year.
• Occupancy and property type. A primary home prices better than a second home or investment, and condos have their own adjustments.
• Points. You can pay points up front to buy the rate down, or take a higher rate for a lender credit toward costs.

Points and "closest to par"

A "point" is 1% of your loan amount. Paying points lowers your rate; taking a lender credit raises it slightly but helps cover closing costs. The rate closest to par is the one that sits nearest to zero points and zero credit, the honest middle of the sheet. On our live rates we show you both the par rate and a lower rate bought down with points, side by side, so you can see the trade-off instead of chasing a headline number.

Rate vs. APR

Your rate determines your monthly principal and interest. Your APR folds in certain financing costs to give a broader annual figure, which is why APR is usually a little higher than the rate. APR is useful for comparing offers, but it is not your payment. We show both, plus the estimated monthly payment with taxes and insurance, so nothing hides.