U.S. Mortgage Index
Back to Mortgage FAQs

How do I compare mortgage offers when I am shopping for a loan?

Ask USMI can help explain this answer and the published sources behind it.

Ask USMI

Short answer

Compare written Loan Estimates from several lenders, not only advertised rates. Look at the interest rate, , loan term, points or credits, fees, whether the rate is fixed or adjustable, cash to close, and the total monthly payment. The CFPB recommends requesting estimates from at least three lenders.

Full explanation

Shopping among lenders and brokers helps you see differences in price and terms. The CFPB suggests starting with a broad search of rates in your area, then contacting banks, credit unions, and other lenders or brokers. Ask each one for the interest rate; the usual fees; the APR, which includes the interest rate plus points, broker fees, and certain other charges; and whether each product is fixed or adjustable and what points or credits go with each rate. If you pay points, confirm that the rate actually falls.
Request Loan Estimates from at least three lenders and compare the same standard form. Check the loan term, cash needed to close, whether the payment pays down principal, what else is added to the monthly payment, whether you can repay early without penalty, and whether the written offer matches what you were told. Compare the documents; do not rely on a headline rate alone.

Sources reviewed

Limits

Educational summary of public sources. Not personalized advice. The original official source controls where applicable.

Cite as

Ask a follow-up

Keep exploring this question with the published answer in context.

Ask a follow-up about this question