What affects your mortgage interest rate?

Your mortgage rate is shaped by both the broader market and your personal financial profile. On the market side, rates track the 10-year Treasury yield and the overall economy. On your side, lenders weigh your credit score, down payment, debt-to-income ratio, loan term, and loan type — a 15-year fixed loan, for example, usually prices lower than a 30-year fixed loan, and government-backed loans like FHA and VA often price lower than conventional loans because of their government guarantee.

Should you lock in your mortgage rate?

A mortgage rate lock is your shield against volatile interest rates. It's a guarantee from your lender to hold a specific rate for you for a set period, usually 30 to 45 days, protecting you from increases that might occur before you close. While a standard lock is often free, extending it will incur a fee. For added flexibility, ask about a "float-down" option, which allows you to secure a lower rate if the market drops, though this perk also typically has a cost.

How much are closing costs on a mortgage?

Closing costs are the collection of fees required to finalize your mortgage and transfer the property's title into your name. These expenses include lender charges like the origination fee, as well as third-party fees for services like the appraisal and title insurance. Total closing costs typically run 2% to 5% of the loan amount, though the exact mix depends on your loan type, lender, and state. FHA and VA loans each add their own extra cost on top of that — FHA charges an upfront mortgage insurance premium, while VA loans include a funding fee — which you can pay at closing or finance into the loan.

Who are the best mortgage lenders?

The "best" lender varies for every borrower, depending on their financial profile and priorities. However, top lenders consistently compete on four key factors: competitive interest rates, low fees and closing costs, exceptional customer service, and a convenient, streamlined application process. The only way to find the best lender for you is to shop around and compare official offers.

How do 15-year rates compare to 30-year rates?

A 15-year fixed-rate mortgage typically carries a lower interest rate than a 30-year fixed-rate loan — often 0.25 to 0.75 percentage points lower — because the lender's money is at risk for half as long. The trade-off is a higher monthly payment, since you're paying off the same loan amount over half the time. Over the life of the loan, though, a 15-year term can save tens of thousands of dollars in interest. Government-backed loans add another dimension: FHA and VA loans often price below comparable conventional loans, though FHA requires ongoing mortgage insurance that can offset some of that savings.

Compare Today's Mortgage Rates

Mortgage Rate Trends

Loan Type

Loan Program

VA 30-Yr Fixed Rate Trends

Showing industry-wide average VA 30-Yr Fixed mortgage rates over the past 30 days.

VA 30-Yr Fixed average rate history for the last 30 days
Date	Average Rate
2026-07-20	5.957%
2026-07-21	6.004%
2026-07-22	6.033%
2026-07-23	6.065%
2026-07-24	6.115%
2026-07-31	6.102%
2026-08-03	6.155%
2026-08-04	6.127%
2026-08-05	6.069%
2026-08-06	6.071%
2026-08-07	6.075%
2026-08-10	6.083%
2026-08-11	6.117%
2026-08-12	6.090%
2026-08-13	6.048%

Data source: BankingBridge API. Updated daily.

Program

Rate

APR

Change

VA 30-Year

6.048%

6.286%

0.08%

How to compare mortgage rates to find the best one

Mortgage rates vary more between lenders than most borrowers expect — sometimes by half a percentage point or more for the exact same loan. Comparing rates across multiple lenders, not just applying with the first one you find, is the single biggest thing you control in the cost of your mortgage.

Rates also vary by loan type. A 30-year fixed rate typically runs higher than a 15-year fixed rate on the same loan amount, since the lender is taking on risk for twice as long. FHA and VA loans often price lower than conventional loans because they carry a government guarantee, though FHA adds mortgage insurance that offsets some of that savings. Jumbo loans — those above the conforming loan limit — can price higher or lower than conforming loans depending on the lender's appetite for larger balances.

With so many loan types and lenders in play, it can be hard to know where to start. This four-step process can help:

Get a rate quote from any lender that catches your eye. These should be free and fast to get, and they won't affect your credit score. To help you get started, we have a rate table of options from leading lenders.
Apply with at least three lenders. Make sure you do this all around the same time so the hard inquiry gets grouped together, limiting the impact on your credit.
Compare loan estimates. Specifically, you want to look at the annual percentage rate (APR), which factors in fees and the interest rate to tell you how much you'll really pay for that loan each year. You can use our mortgage calculator to plug things in and see more clearly how a specific offer would shake out for you.
Go with the lender who offers you the best deal. By seeing what they're really going to charge in interest, fees, and closing costs, you can find the mortgage company that will offer you the most affordable loan.

Those steps might feel like a lot of work. But the Consumer Financial Protection Bureau says that comparison shopping like this could save you $100 a month or more.

Quick tip: Learn more about comparing mortgage offers

How lenders decide on your interest rate

The mortgage interest rates that lenders charge get shaped by current market forces. Most rates move with the 10-year Treasury yield, since long-term mortgages compete with Treasury bonds for the same pool of investor money.

Still, two different borrowers might apply for the same loan amount on the same day and get different rates. Similarly, the same borrower might apply with two different companies and get different rate quotes from each. If the same market forces are in play, why does that happen?

It's because lenders each use different algorithms during underwriting (their process of deciding to approve a loan and at what rate). Different lenders weighing different factors differently adjusts the rate you get offered.

As part of that underwriting process, lenders look at your:

Credit score
Financial assets
Loan-to-value (LTV) ratio — how much you're putting down relative to the home's price
Your debt-to-income (DTI) ratio

The better you look in these areas, the lower-risk you'll be in the lender's eyes. Lenders love low-risk borrowers. If you're likely to repay your loan, they're likely to make the money they expect. As a result, lenders charge lower interest rates to borrowers with stronger financial profiles. Loan type factors into that risk picture too — FHA and VA loans weigh these factors differently than conventional loans, which is part of why they can price lower despite smaller down payments.

Quick tip: You can work to improve your credit score and lower your DTI

Your options for refinancing your mortgage

If you get a mortgage now, you're not necessarily stuck with your interest rate — even if you get a fixed-rate loan. And you don't have to leave your equity stuck in your house, either.

You always have the option to refinance down the road. That means replacing your current mortgage with a new one.

Depending on your current loan, you generally have two paths:

Rate-and-term refinancing: This gives you a way to refinance into a new loan that lowers your interest rate, stabilizes it (i.e., switches you from an adjustable-rate mortgage [ARM] to a fixed-rate one), or shortens your repayment term. Borrowers with an existing VA or FHA loan may qualify for a streamlined version of this with less paperwork.
Cash-out refinancing: With this option, you can refinance your current loan into a new, larger mortgage and take cash out in the process. You get a new mortgage that's bigger than the balance on your current loan, allowing you to pocket the difference in cash.

Refinancing can come with some serious financial upside, but it does mean paying closing costs on your new loan.

Quick tip: When to refinance