Lenders buy into the same market but price loans differently: their costs, profit targets, how busy they are, and how they package points and fees all vary. Quotes also differ because of assumptions, such as your credit score, lock length or how many points are built in. The only fair comparison is official Loan Estimates for the same loan on the same day.
Why quotes differ
- Margins and overhead: a bank with branches has different costs than an online lender or broker.
- Capacity: busy lenders raise rates to slow applications; slow ones cut rates to win business.
- Points baked in: one quote may include a point, another none.
- Lock period: a 60-day lock usually costs more than a 30-day lock.
- Assumptions: advertised rates often assume excellent credit, 20% or more down and a single-family primary home.
- Specialties: some lenders price FHA, VA, jumbo or condo loans more competitively than others.
Advertised rates vs. your rate
An advertised rate is a sample. Your rate depends on your file; see how mortgage rates are set. Check the assumptions behind any advertised rate, and look for the APR next to it.
Try it: Compare mortgage offersEnter each lender’s rate, points and fees to see which is cheapest over the time you’ll keep the loan.How to compare fairly
- Apply with three or more lenders within a few days; credit inquiries for mortgages in a short window count as one.
- Ask for the same loan amount, type, term and lock period.
- Compare Section A fees and the rate, or the break-even between different point options; see the rate buydown break-even tool.
- Ask each lender to match the best offer.
Read how to shop for a mortgage and how to read a Loan Estimate.
Common questions
Why is my rate higher than the advertised rate?
Advertised rates assume excellent credit, a large down payment and often points; your rate reflects your own file.
How many lenders should I compare?
At least three, on the same day, for the same loan.
Can I ask a lender to match another offer?
Yes. Many lenders will match or beat a competitor’s Loan Estimate, especially on fees.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.