Who has the best mortgage rates? Compare cheap lenders in 2022

Maggie Overholt
Maggie Overholt
The Mortgage Reports Editor
August 12, 2022 - 13 min read

Who has the best mortgage rates?

To find the best mortgage rates, we analyzed all 30-year loans from the biggest lenders in 2021 (the most recent data available).1,2 The companies with the lowest mortgage rates on average are shown below.

Just remember, rates are different for each borrower. So you’ll have to compare a few different lenders to find your best deal. Your best mortgage rate may or may not come from one of the companies listed here.


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Note: Mortgage rates cited in this article are from 2021 and do not reflect the rate you will be offered today. Interest rates are shown for general comparison purposes only. 

Banks with the best mortgage rates

To find the best mortgage rates, we compared average 30-year fixed rates from the 30 biggest residential mortgage lenders in 2021 (the most recent data available).

The ten lenders with the best mortgage rates on average are:

  1. Freedom Mortgage
  2. Bank of America
  3. Veterans United*
  4. Better
  5. PennyMac
  6. AmeriSave
  7. Navy Federal Credit Union*
  8. Home Point Financial
  9. loanDepot
  10. Caliber Home Loans

*These lenders specialize in military lending and may not help every borrower.

Remember that rates vary from one borrower to the next and your lowest rate may or may not come from a lender on this list. Borrowers should compare offers from at least three to five lenders to find their own best mortgage rate.

The best mortgage rates, ranked

The following banks and mortgage lenders have the best mortgage rates on average, based on nationwide data filed by lenders under the Home Mortgage Disclosure Act. These averages are from 2021, the most recent data available at the time of writing.

Rates have risen in 2022, and the average rates you see here do not represent mortgage interest rates on offer today. However, historical mortgage rates can be a useful guide to help you find the banks with the lowest mortgage rates on average. The lists below are a great starting point if you’re shopping for a new home loan.

Lenders with the best mortgage rates:

  1. Freedom Mortgage: 2.66%
  2. Bank of America: 2.80%
  3. Veterans United*: 2.86%
  4. Better Mortgage: 2.86%
  5. PennyMac: 2.87%
  6. AmeriSave: 2.90%
  7. Navy Federal Credit Union*: 2.93%
  8. Home Point Financial: 2.94%
  9. loanDepot: 2.99%
  10. Caliber Home Loans: 2.99%
  11. Rocket Mortgage: 3.00%
  12. Guaranteed Rate: 3.01%
  13. Citizens Bank: 3.01%
  14. Chase bank: 3.02%
  15. Newrez: 3.06%
  16. PNC: 3.08%
  17. Lakeview Loan Servicing: 3.08%
  18. New American Funding: 3.08%
  19. Guild Mortgage Co.: 3.09%
  20. Cardinal Financial Company: 3.10%
  21. Movement Mortgage: 3.12%
  22. Mr. Cooper: 3.13%
  23. Wells Fargo: 3.14%
  24. CrossCountry Mortgage: 3.16%
  25. Fairway Independent Mortgage Corp.: 3.18%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different. *These lenders specialize in select loan types and may not help every borrower.

Note that the average rates above are for all 30-year loans generated by each lender in 2021. If you’re looking specifically for refinance rates, see:


Best mortgage rates by loan type

Mortgage rates vary a lot by lender. But they also depend on your loan type. And some lenders are more competitive for one type of mortgage than another.

For instance, some lenders focused on VA mortgages might not be as competitive for conventional loans, and vice-versa.

The lists below show the best mortgage rates for the four main types of home loans: conventional, FHA, VA, and USDA. Again, use these lists as a starting point but note that the rates shown are averages from 2021 and do not reflect current mortgage rates.

Best conventional mortgage rates

  1. Bank of America: 2.79%
  2. Better Mortgage: 2.86%
  3. AmeriSave: 2.91%
  4. Citizens Bank: 2.99%
  5. Home Point FInancial: 3.01%
  6. Chase Bank: 3.01%
  7. loanDepot: 3.01%
  8. Rocket Mortgage: 3.03%
  9. Wells Fargo: 3.03%
  10. Guaranteed Rate: 3.04%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different.

Best FHA mortgage rates

  1. Freedom Mortgage: 2.80%
  2. Home Point Financial: 2.81%
  3. Homebridge Financial: 2.84%
  4. Caliber Home Loans: 2.85%
  5. Rocket Mortgage: 2.85%
  6. American Financing Corp.: 2.86%
  7. DHI Mortgage: 2.88%
  8. AmeriSave: 3.00%
  9. PennyMac: 3.01%
  10. Flagstar Bank: 3.02%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different.

Best VA mortgage rates

  1. Village Capital and Investment*: 2.44%
  2. Freedom Mortgage: 2.45%
  3. Home Point Financial: 2.47%
  4. Rocket Mortgage: 2.51%
  5. Navy Federal Credit Union*: 2.53%
  6. loanDepot: 2.56%
  7. Lakeview Loan Servicing: 2.62%
  8. American Financial Network: 2.62%
  9. AmeriSave: 2.63%
  10. PennyMac: 2.63%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different. *These lenders specialize in select loan types and may not help every borrower.

Best USDA mortgage rates

  1. Freedom Mortgage: 2.68%
  2. DHI Mortgage: 2.69%
  3. Home Point Financial: 2.78%
  4. Flagstar Bank: 2.82%
  5. AmeriSave: 2.90%
  6. Guaranteed Rate: 2.94%
  7. Planet Home Lending: 2.96%
  8. Newrez: 2.96%
  9. PennyMac: 2.97%
  10. Caliber Home Loans: 2.97%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different.

Current mortgage rates

Not only can mortgage rates change on a daily basis, they often adjust multiple times per day. If you’re in the market for a home loan, you’ll want to keep an eye on daily mortgage rate movements.

Knowing when rates are rising or falling can help you decide when to lock a rate — especially if you’re refinancing. And it can give you some idea of how competitive your own rates are compared to the overall market.

To give you a basis for comparison, here are today’s best mortgage rates according to our lender network.*

Loan TypeToday's Best Mortgage Rate*
Conventional 30-Year Fixed% (% APR)
Conventional 15-Year Fixed% (% APR)
FHA 30-Year Fixed% (% APR)
FHA 15-Year Fixed% (% APR)
VA 30-Year Fixed% (% APR)
VA 15-Year Fixed% (% APR)

*Rates shown here are based on a daily survey of The Mortgage Reports’ lender network. Your own rate will be different. See our full mortgage rate assumption here.

What’s more important: Low mortgage rates or low closing costs?

It’s just as important to compare upfront loan costs as it is to compare mortgage rates.

Your interest rate might seem much more important because it’s with you for the life of the loan and it helps determine your monthly mortgage payment. But upfront fees can make a big difference, too — especially if you’ll only be in the house a few years.

Remember that most people who get a 30-year mortgage don’t keep their loan the full 30 years. In fact, homeowners keep 30-year loans for just seven years on average. And when you’re only paying interest over a short period, those upfront fees start to carry more weight compared to your interest rate.

Lenders might emphasize either low closing costs or low rates to make an offer look more attractive, while raising the other number.

In addition, lenders will sometimes emphasize one number or the other to make an offer look more attractive than it is.

For instance, lenders might advertise low- or no-fee mortgages, saying they’ll cover the upfront costs for you. But these loans typically have a higher interest rate. Other lenders might emphasize ultra-low interest rates, but charge higher origination fees or discount points to make up for it.

So when you’re shopping for a mortgage, read your rate quotes thoroughly. Look at rates, upfront fees, and your total estimated closing costs to make sure you’re getting the best deal overall.

How to shop for mortgage rates

It’s easy to compare mortgage rates and fees if you know what you’re doing. There are five basic steps:

  1. Work on your credit rating and home-buying budget to get the best possible offer. Experiment with a mortgage calculator to see how down payment and interest rate affect the amount of home you can afford. It can be a useful warm-up exercise before you begin requesting quotes
  2. Figure out which type of mortgage loan you need. For example, are you in the market for a single-family home or a multi-unit property? Do you have a modest down payment, or are you rolling over sizable home equity from your current home into a new one?
  3. Find lenders offering the type of loan you’re looking for. First-time home buyers may be better suited for an FHA loan, while borrowers with a strong FICO score and a hefty down payment will probably qualify for a conventional mortgage. If you’re in a rural or suburban area, a USDA loan might be right for you
  4. Use advertised rates, recommendations, customer reviews, and expert reviews to select your best mortgage lenders
  5. Request Loan Estimates (“quotes”) from those lenders and compare the rates and fees in each offer

That last step — comparing Loan Estimates — is key to finding the best mortgage rate and most affordable mortgage overall.

Each lender you get preapproved with will give you a Loan Estimate. These documents are in a standard format that’s easy to compare side by side. Look at interest rates, annual percentage rate (APR), upfront costs, discount points, and lender fees to determine which loan offer is the most affordable for you.

For more information, see our complete guide to shopping for a mortgage.

Tips to get the lowest mortgage rate

If you want the lowest mortgage rate available, you have to shop around. That’s the number one rule. But there are other strategies you can use to get lower offers from the lenders you talk to.

  • Try for a last-minute credit boost. See what you can do to improve your credit before buying or refinancing. Your credit score makes a big difference in your mortgage rate, and improving it just a few points could lead to real savings
  • Consider discount points. If you can afford it, you can pay more upfront for a better mortgage rate over the life of the loan. This could be smart if you plan to keep your home a long time. A discount point costs 1% of the loan amount and typically lowers your rate by 0.25%
  • Negotiate your rate. Negotiating with a lender might sound intimidating, but trust us when we say it can be done. Mortgage lenders have flexibility with the rates they offer, and they want your business. A lower interest rate from a different company might be the only leverage you need to negotiate a better offer with the lender you want
  • Negotiate your closing costs. Some closing costs are non-negotiable, like the third-party appraisal and credit reporting fees. But the fees your lender charges can sometimes be negotiated to save you money on the front end
  • Know when to lock your rate. Mortgage rates move up and down every day. If you want to get the lowest possible rate, keep an eye on daily rate movements and be ready for a rate lock when they fall

Getting mortgage quotes might not be the most enjoyable way to spend a day. But a few hours of effort could save you thousands on your new home or mortgage refinance.

One study found that people who compare just three lenders save $300 per year on average. And if you’re a savvy shopper, you might save a lot more.

Best mortgage rates FAQ

What is the best mortgage rate available right now? 

Mortgage rates spiked to start 2022 and hit a peak on June 23 at 5.81 percent, according to Freddie Mac. Since then, the lowest mortgage rate was just under 5 percent at 4.99 for a 30-year fixed-rate mortgage. Keep in mind that these figures are averages and borrowers with excellent credit can often get rates substantially lower.

What bank has the best mortgage rates?

We compared 30-year mortgage rates from the 30 biggest lenders in 2021 (the most recent data available). In our study, Freedom Mortgage had the lowest mortgage rates overall while Rocket Mortgage had the best mortgage rates for a conventional loan. Keep in mind that rates vary a lot from one person to the next and you need to compare lenders to find your best rate. The cheapest lender on average won’t necessarily be your best bet.

What type of loan has the lowest mortgage rates? 

VA loans and USDA loans typically have the lowest mortgage rates of any program, but there are special requirements to qualify. Conforming loans often have very competitive rates for borrowers with great credit. And an FHA loan will likely offer the best rates if your credit score is on the lower end of the scale.

Is 4.25 a good mortgage rate? 

In April 2022, 30-year mortgage rates went above 5 percent for the first time in a decade. In this environment, 4.25 is a very good interest rate for a 30-year fixed mortgage. That said, a “good” rate looks different depending on how strong your personal finances are. A 4.25 percent rate might be great for one borrower, while a 5.25 percent rate could be good for another.

Do adjustable-rate mortgages have better rates? 

Adjustable-rate mortgages (ARMs) typically advertise lower rates than fixed-rate mortgages (FRMs). However, the intro rate on an ARM is only fixed for a few years; typically five, seven, or 10. After that, your rate could adjust once per year and may increase. This would lead to higher monthly payments, too.

Do 15-year mortgages have lower rates?

Yes. All other things being equal, the shorter your loan term is, the lower your interest rate will be. So a 15-year fixed-rate mortgage should have a lower rate than a 30-year fixed-rate mortgage. However, monthly mortgage payments will be significantly higher.

What affects my mortgage rate? 

Your mortgage rate depends on the overall interest rate market when you buy as well as your own financial situation. Some of the biggest factors that impact your mortgage rate are your credit score, loan type, down payment, and debt-to-income ratio (DTI).

What is the lowest 30-year mortgage rate ever?

Freddie Mac is the most widely-used source for mortgage rate tracking. According to Freddie, the lowest 30-year mortgage rate ever was 2.65 percent in January 2021. Keep in mind that was an average, meaning some borrowers with great credit scores and strong finances got 30-year rates even lower than 2.65 percent.

Are interest rates going down? 

Mortgage interest rates increased rapidly in the first quarter of 2022, and they’re not expected to fall any time soon. Of course, rates move every day, and they can tick slightly down from time to time. But those small dips are often followed by rises. And the rest of 2022 is expected to bring higher rates rather than lower rates.

Should I lock a mortgage rate in 2022?

In a rising-rate environment, it’s always good to lock your rate as soon as possible. It’s very hard to time the market for the lowest possible rate. And when rates look set to rise rather than fall, it makes sense to lock rather than wait for rates to dip from day to day.

What are current mortgage rates?

Mortgage rates have risen from the record lows seen in 2020 and 2021. That means it’s more important than ever to shop around for your best deal.

Comparing lenders and negotiating for a better mortgage rate can save you thousands of dollars — even tens of thousands — in the long run. So it’s well worth the effort.

Ready to get started?

1Top 50 mortgage lenders for 2021 based on 2020 Home Mortgage Disclosure Act (HMDA) data via Bundle Loan and 2021 data sourced directly from the HMDA data browser

2Rate and fee data were sourced from self-reported loan data that all mortgage lenders are required to file each year under the Home Mortgage Disclosure Act. Averages include all 30-year loans reported by each lender for the previous year. Your own rate and loan costs will vary.