Compare Mortgage Rates for October 2026

The interest rate sets your monthly principal and interest payment. The APR adds certain upfront costs, such as points and origination fees, and spreads them over the loan term as a yearly rate. When two lenders quote the same rate, the one with the lower APR usually costs less overall.

Compare APRs only for the same loan: same amount, term, down payment and points.

After you apply, every lender must give you a standard Loan Estimate within three business days. Line them up side by side to compare fees on the same form.

Less than many buyers think. Some conventional loans for first-time buyers allow 3% down, FHA loans allow 3.5% with a credit score of 580 or higher, and VA and USDA loans can require nothing down for eligible borrowers.

With less than 20% down on a conventional loan, you'll usually pay private mortgage insurance (PMI). You can ask to cancel it once your balance reaches 80% of the home's original value, and it ends automatically at 78% under the federal Homeowners Protection Act.

On a $400,000 home, 3% down is $12,000 and 20% down is $80,000. Closing costs come on top of the down payment.

A fixed-rate mortgage keeps the same rate and principal-and-interest payment for the full term. An adjustable-rate mortgage (ARM) starts with a fixed rate for a set period, such as seven years on a 7/6 ARM, then adjusts every six months based on a market index.

An ARM can make sense if you expect to sell or refinance before the fixed period ends.

Check the caps: how much the rate can rise at the first adjustment, at each later adjustment, and over the life of the loan. Work out your payment at the lifetime cap before you commit.

One point costs 1% of the loan amount and lowers your rate by an amount the lender sets. On a $320,000 loan, one point costs $3,200. If it cuts the rate from 6.50% to 6.25%, the payment drops by about $52 a month, so you break even in roughly 61 months.

Points pay off if you keep the loan past the break-even month. If you expect to move or refinance within a few years, skip them.

Ask each lender for quotes with zero points and with one point so you can run the same math on both.

Closing costs commonly run 2% to 5% of the loan amount, or $6,400 to $16,000 on a $320,000 loan. They include lender fees, the appraisal, title insurance, recording fees and prepaid property taxes and homeowners insurance.

Your Loan Estimate lists every fee. Some, such as title services, you can shop for yourself.

Some lenders offer to cover closing costs in exchange for a higher rate. Compare the total cost over the years you expect to keep the loan.

Not much, if you shop within a short window. Credit scoring models count multiple mortgage inquiries made within a set period, from 14 to 45 days depending on the model, as a single inquiry.

Get quotes from at least three lenders in the same week so the offers reflect the same market rates.

Prequalification is a quick estimate based on what you report. Preapproval means the lender has checked your credit, income and assets, and it carries more weight with sellers.