Mortgage Loan Rates Comparison
If you are unsure which mortgage rate truly fits your goal, you are not alone. Many buyers have the same feeling of uncertainty. That’s why we created this easy‑to‑follow comparison.
Continue below to find the information you need to decide which mortgage rate is a good fit for you.
Call Now to Get Your Personalized Mortgage Rate:
Who This Mortgage Guide Is For
This mortgage comparison is designed for you if you are:
- First-time homebuyers seeking for a primary residence mortgage
- Homeowners looking to refinance
- Buyers comparing fixed vs adjustable rates
- Anyone unsure which loan fits their financial goals
Call Mortgage Shop now for a free consultation
With Mortgage Shop, you can confidently find the right DSCR Loan for your property.
Mortgage Rates by Loan Type
| Loan Type | Average Interest Rate | Average APR | Typical Rate Range | Key Benefit |
|---|---|---|---|---|
| 30-Year Fixed | 6.40% | 6.46% | Moderate | Stable rate and predictable payments for the life of the loan |
| 15-Year Fixed | 5.73% | 5.82% | Lower than 30‑year | Lower interest rate and less total interest paid |
| 5/1 ARM (Adjustable) | 5.55% | 7.64%* | Lower initial rate | Lower starting payments during the initial fixed period |
| FHA (30-Year Fixed) | 6.26% | 6.30% | Competitive | Lower down payment requirements |
| VA (30-Year Fixed) | 6.46% | 6.51% | Often lower | No down payment and no private mortgage insurance |
| Jumbo (30-Year Fixed) | 6.53% | 6.56% | Higher | Allows financing of larger loan amounts |
Rates vary based on credit score, loan size, and location. Last updated: April 28, 2026
Your Rate Will Be Different, Here’s Why
The rates above are averages. Your actual rate depends on:
- Your credit score
- Your income and debt (DTI)
- Your down payment
- Property location
- Loan amount
Call now to get a rate tailored to your situation:
800-816-7982
What These Rates Mean for Your Monthly Payment
To make it simple, here’s a simple example to make it clear:
Example: $300,000 Loan
- 30-Year Fixed (6.40%) = $1,880/month (it has a lower monthly payment, but you pay more interest over time.)
- 15-Year Fixed (5.73%) = $2,490/month (Higher monthly payment, but you save a lot on total interest)
- 5/1 ARM (5.55%) (initial period) = $1,710/month (Lowest starting payment, but it can increase later. )
What is the difference between Average Interest Rate and Average APR?
When you are selecting the right mortgage, it is essential to look beyond the Interest Rate and consider the Annual Percentage Rate (APR). This reflects the true cost of borrowing by including lender fees and closing costs.
- Interest Rate is the percentage you pay yearly for borrowing the principal. It affects your monthly payment but excludes most fees.
- APR (Annual Percentage Rate) is the true cost of the loan. It combines the interest rate with lender fees and closing costs. You can use APR to accurately compare mortgages.
If you’re not sure which loan is right for you, call Mortgage Shop LLC for a free consultation with one of our experts:
800-816-7982
Fixed vs. Adjustable, Which Mortgage Type is Right for You?
When choosing between these, you decide between long-term certainty and short-term savings.
When you choose a fixed-rate loan, your interest remains identical from your first payment to your last.
Conversely, an ARM usually offers a lower initial "teaser" rate for a set period (such as 5 or 7 years) before the rate adjusts based on market conditions.
A quick comparison of Fixed and Adjustable Mortgages is shown in the table below:
| Feature | Fixed-Rate Mortgage | Adjustable-Rate Mortgage (ARM) |
|---|---|---|
| Rate Changes | Never | After the initial period (e.g., 5 years) |
| Predictability | High, Same payment for 30 years | Low, Payments can increase significantly |
| Initial Cost | Slightly higher interest rates | Lower introductory interest rates |
| Risk Level | Low | Higher (Market volatility risk) |
Refinance or Purchase, Compare Your Options
Refinance replaces your current mortgage with a new one to get a better rate or change your loan length. A mortgage is what you use to buy a home.
Whether it’s a primary residence or a second home mortgage, your monthly payment and long-term costs will differ. Each option has its own advantages, depending on your financial goals.
Use the comparison below to see how purchase and refinance loans typically differ:
| Option | What It Means | Best For | Potential Benefit |
|---|---|---|---|
| Purchase Mortgage | A loan used to buy a new home or property | First‑time buyers or those moving to a new home | Helps you secure financing and lock in a mortgage rate for your home purchase |
| Rate‑and‑Term Refinance | Replaces your current mortgage with a new one that has a different rate or term | Homeowners looking to reduce their interest rate or change the loan length | Lower monthly payments or faster loan payoff |
| Cash‑Out Refinance | Refinance your mortgage and take part of your home equity as cash | Homeowners needing funds for renovations, debt consolidation, or major expenses | Access to home equity while refinancing your mortgage |
| Streamline Refinance | Simplified refinance available for certain government loans (FHA/VA) | Borrowers wanting a faster, easier refinance process | Less paperwork and quicker approval |
How to Get Your Best Mortgage Rate in 3 Simple Steps
You can start easily by following these steps:
Share Your Basic Details
Call us or speak with an expert to discuss your goals. We’ll ask a few quick questions about your income, credit, and budget.
Compare Personalized Loan Options
We search multiple loan programs and match you with options that fit your situation. We simplify everything so you don’t feel overwhelmed by numbers. We make everything easy and transparent for you.
Lock Your Rate & Move Forward
Once you choose the best option, we help you lock your rate and guide you through the next steps until closing.
Why Homebuyers Choose Our Mortgage Experts
At Mortgage Shop LLC, we focus on giving you clarity and real guidance. In addition, we offer the most competitive options so you can move forward with confidence.
Mortgage Shop LLC Advantages:
- Personalized Rate Shopping: We provide the best rate for your unique situation.
- Fast, Hassle‑Free Approvals: Streamlined steps and responsive support keep your loan moving quickly.
- Transparent, No‑Pressure Guidance: We explain everything in plain language so you always know your options.
- Flexible Loan Programs: Whether you are a first‑time buyer or want jumbo or refinance options, we help match you with the right fit.
- Dedicated Homebuyer Support: Our experts stay with you from application to closing and answer questions along the way.
Trusted by Homebuyers Across the U.S.
Sarah M., First-Time Homebuyer
“I wasn’t sure which loan to choose, but Mortgage Shop experts explained everything clearly and helped me find a rate that actually fit my budget. The process was smooth from start to finish.”
David R., Homeowner
“I compared a few lenders, but this team gave me the best options without pressure. I ended up refinancing at a lower rate and saving every month.”
Get Pre‑Qualified Today
If you want a clear estimate of how much you may be able to borrow, you can use pre-qualification. It helps you understand your potential monthly payment, and shows sellers that you’re a serious buyer.
You can focus on homes within your budget and move faster when you find the right one.
Call Now to Get Pre‑Qualified:
800‑816‑7982
How Much Home Can You Afford?
It depends on many factors. The rule is that lenders usually look at your debt‑to‑income ratio DTI to determine affordability. DTI is the percentage of your monthly income that goes toward debts. A lower DTI usually means you may qualify for a higher loan amount and better rates.
When estimating what you can afford, consider:
- Your monthly income
- Existing debt payments (car loans, credit cards, student loans)
- Your down payment amount
- Current mortgage rates
- Property taxes and homeowners insurance
How to Get the Lowest Mortgage Rate
Improve Your Credit Score
If you have a higher credit score, you may qualify for lower mortgage rates. Pay bills on time and reduce credit balances to help.
Increase Your Down Payment
A larger down payment reduces lender risk and may help you qualify for better rates.
Lower Your Debt‑to‑Income Ratio
Pay down existing debts to improve your borrowing profile.
Compare Multiple Loan Options
Different lenders and loan types may offer different rates and terms.
Consider Loan Term Options
Shorter terms, like 15‑year mortgages, often come with lower interest rates than 30‑year loans.
Lock Your Rate at the Right Time
When rates are favorable, locking your rate can protect you from market increases before closing.
Frequently Asked Questions
I’m unsure which mortgage rate aligns with my goals. Where do I start?
Start by deciding if you need long‑term payment certainty (fixed rate) or short‑term savings (ARM). Then compare APRs, not just interest rates, to see the true cost.
What is the difference between Interest Rate and Annual Percentage Rate (APR)?
The interest rate is the amount you pay each year to borrow the principal, and it determines your monthly payment. APR is the actual cost of the loan. This includes the interest rate, lender fees, and closing costs.
ARM vs Fixed - which is better for me?
Fixed gives you predictability for the life of the loan because your rate is never changing. Choose ARM if you want a lower initial payment and expect to move or refinance before the rate adjusts.
Why is the interest rate on an ARM lower than the APR?
ARM APRs may include future rate changes and initial costs that will be higher than the initial teaser rate.
Purchase vs. Refinance?
Refinancing replaces your current loan to lower your rate or change the term. It aims to lower your payment or help you pay off your loan faster.
How do I get the best rate on a mortgage?
Improve your credit score, increase your down payment, lower your DTI, compare multiple lenders and loan programs, consider shorter loan terms (15-year loans typically have lower rates), and lock in your rate when market conditions are favorable.
How much house can I afford?
Lenders consider your debt-to-income ratio (DTI), income, existing debts, down payment, current rates, property taxes, and insurance.
Will I get the rate I applied for?
Not necessarily. You have to lock your rate to hedge against market changes before closing.
Are VA and FHA loans really a better deal?
Often, yes, as VA loans typically do not require a down payment or PMI. FHA loans require low down payments and can help buyers with lower credit scores.
Is a 15-year loan always better than a 30-year loan?
Not necessarily. Decide based on your budget, cash flow, and goals because you’ll pay more each month on a 15-year loan.
What's a good DTI target?
Many traditional loans prefer to see total DTI at or below about 43%, but there are exceptions. Lower is better for the rate and approval.
How often do the rates change?
Rates can change daily based on market conditions. Call 800‑816‑7982 for today’s rates.
What comes next after the ARM’s initial term?
After 5 or 7 years of payments (depending on the ARM), your rate may change periodically according to the market index and caps. That means payments could go up. If you want to avoid potential rate hikes, plan to move or refinance before adjustments take effect.