How mortgage pricing works, what you can control, and how to compare offers on equal terms.
On this page
- What actually moves my mortgage rate?
- Why is the rate I see online different from the one I get?
- What does locking my rate mean, and when should I do it?
- What are discount points?
- How do I compare offers from two lenders fairly?
- Should I shop more than one lender?
- What is the difference between a mortgage broker and a bank or direct lender?
What actually moves my mortgage rate?
Two things move your mortgage rate: the broader market and the details of your own loan. Rates can change daily, sometimes hourly, and you cannot control that part.
You can influence your side of it. Lenders look at your credit, the home's location, the price and loan amount, your down payment, the loan term, fixed or adjustable, and the loan type, such as conventional, FHA, USDA, or VA. Points and lender credits also change the rate you pay. Lenders set their own products and pricing, so offers differ from one lender to the next even on the same loan.
Sources: Seven factors that determine your mortgage interest rate, CFPB; Your home loan toolkit, CFPB; Explore interest rates, CFPB
Why is the rate I see online different from the one I get?
The rate you see online is usually built on assumptions about a borrower that may not match you. Your actual offer depends on your credit, down payment, loan amount, loan type, term, location, and lock period.
Federal consumer tools show this directly: they state a sample borrower and show a range of offers, and your rate may fall outside it. Some advertised pricing may also depend on paying points, which is an upfront fee for a lower rate. Rates change daily, and lenders set their own pricing. Even the rate on a Loan Estimate is not final unless it is locked, and it can change if your application changes. Compare written offers based on your real details.
Sources: Explore interest rates, CFPB; Seven factors that determine your mortgage interest rate, CFPB; Your home loan toolkit, CFPB
What does locking my rate mean, and when should I do it?
Locking means your rate will not change between the offer and closing, as long as you close within the time frame and your application does not change. There is no single right moment, so the timing depends on your closing date and how much market risk you can accept.
Your Loan Estimate shows whether your rate is locked or floating. Lock policies vary, so ask what the lock costs, how long it lasts, and what happens if closing is delayed. Pick a period that fits your expected closing, because extending can be expensive. A lock can keep you from a lower rate if the market falls. A locked rate can still change if your loan type, down payment, appraisal, credit, or documented income changes.
Sources: What's a lock-in or a rate lock? CFPB; Your home loan toolkit, CFPB; Can my final mortgage costs increase from what was on my Loan Estimate? CFPB
What are discount points?
Discount points are an upfront fee you pay at closing in exchange for a lower interest rate. Each point is a set share of your loan amount, so the cost grows with the size of the loan.
Lender credits work the other way: you accept a higher rate, and the lender gives you money toward closing costs. You can also choose no points in either direction. Points can make more sense if you plan to keep the loan a long time, and credits can help if you need to limit upfront costs. Compare your options over a short period, a long period, and how long you actually expect to keep the loan. Also make sure a lender is not cutting your rate while raising another fee.
Sources: What are discount points and lender credits and how do they work? CFPB; Your home loan toolkit, CFPB; Shopping for a Mortgage, CFPB
How do I compare offers from two lenders fairly?
Get a Loan Estimate from each lender for the same type of loan and compare the same lines on each form. Because rates can change daily, try to get them around the same time, and check whether each rate is locked.
On the second page, focus on Sections A and B, which show what the lender charges and services you cannot shop for. Section C holds services you can shop for no matter which lender you pick. Section J shows lender credits, and they can affect your rate. Then use the Comparisons section on the third page, which shows costs over the full term, and the table showing costs over the early years. Make sure points are similar, since a lower rate can simply mean a higher upfront cost.
Sources: Your home loan toolkit, CFPB; Loan Estimate explainer, CFPB; Shopping for a Mortgage, CFPB
Should I shop more than one lender?
Yes, the CFPB recommends getting offers from several lenders, because loan options and costs can vary widely. Asking for written Loan Estimates lets you compare them on the same form.
Shopping usually does little to your credit if you keep it within a short window, since most scoring models treat mortgage shopping that way. Getting a Loan Estimate does not commit you to a lender, and you are not committed until you sign final closing documents. Lenders generally must wait for your intent to proceed before charging most fees, other than a small credit report fee. Builders and agents may recommend a lender, but you can still compare. A loan officer is not necessarily shopping on your behalf.
Sources: Shopping for a Mortgage, CFPB; Contact multiple lenders, CFPB; Your home loan toolkit, CFPB
What is the difference between a mortgage broker and a bank or direct lender?
A lender makes the loan directly and you repay it under the loan's terms. A broker does not lend the money, and instead helps you find lenders or loan options.
Under federal rules, a mortgage broker is a loan originator who is not an employee of the creditor on that loan. Loan officers often work for one lender, while brokers typically work with multiple lenders. Both are usually paid a loan-specific fee or commission, paid by you or by the lender. Federal law prohibits commissions from varying based on the terms of the mortgage. Some institutions act as both, so ask whether a broker is involved. Either way, make sure you understand the fees and who pays them, and compare offers.
Sources: What is the difference between a mortgage lender and a mortgage broker? CFPB; How does a mortgage loan officer or broker get paid? CFPB; 12 CFR 1026.36, Regulation Z, CFPB; Your home loan toolkit, CFPB
General information, checked against the sources shown in November 2026. Program rules change and each lender can add its own requirements. This is not a commitment to lend.
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