Quick answer: Advertised mortgage rates are usually based on a very specific example. Your actual rate can differ because your loan, property, timing, and financial profile may not match the assumptions behind the advertisement.
Factors that can change mortgage pricing
- Credit score and credit history
- Down payment and loan-to-value ratio
- Loan amount and loan program
- Primary residence, second home, or investment occupancy
- Single-family, condominium, manufactured, or multi-unit property
- Length of the rate lock
- Discount points or lender credits
- The exact day and time the quote is issued
Mortgage-backed securities and lender pricing can move during the day. Two quotes obtained on different days, or even several hours apart during a volatile market, may not be directly comparable.
A low headline rate may carry a high cost
An advertisement may show a rate that requires discount points, assumes excellent credit, uses a large down payment, or applies only to a narrow loan scenario. The APR helps disclose some finance costs, but it still does not replace a side-by-side review of the Loan Estimate.
How to compare quotes correctly
Ask each lender to quote the same loan amount, property type, occupancy, down payment, program, lock period, and rate at approximately the same time. Then compare lender-controlled charges, discount points, credits, cash to close, and the break-even period. Taxes, insurance, and other third-party charges should be reviewed, but they are not usually the best measure of one lender’s pricing.
Read how to compare mortgage rates, points, and lender credits and what mortgage points mean.
Rates and pricing can change until locked and depend on a complete loan scenario.