How to Get Low Mortgage Rates in 2026

This guide will explain what counts as a “good” rate today, what affects the offers you’ll receive, and how to improve your chances of locking in a lower mortgage rate in 2026.

Top Factors That Affect Your Mortgage Rate in 2026

What is a Good/Low Rate for a Mortgage Today?

What’s considered a good mortgage rate in 2026 depends on your financial profile, especially your credit score. While rates have remained relatively high, borrowers with excellent credit (760 or above) may still secure better terms than those with average or poor credit.

For example, as of early 2026, a 30-year fixed mortgage rate averages around 7.4% for top-tier credit, compared to 7.9% for scores near 620. That 0.5% difference might not seem like much, but over a 30-year loan, it can mean saving tens of thousands of dollars in interest.

Credit score is a major factor in how to get a lower mortgage rate — but it’s not the only one. Lenders also consider your debt-to-income (DTI) ratio, loan amount, down payment size, and the type of loan you’re applying for. Improving even one of these factors can help reduce your interest rate.

Estimated Mortgage Rates by Credit Score (2026)

📌 Source: BestMoney Research, January 2026 (Estimates based on national averages. Rates vary by lender and borrower profile.)

How to Find Low Mortgage Rates in 2026

In 2026, mortgage rates remain volatile, making it more important than ever to compare offers from multiple lenders. Thanks to online comparison tools and mortgage marketplaces, it’s easier than ever to view side-by-side rates based on your credit profile, location, and loan type.

To increase your chances of qualifying for the lowest mortgage rates available, focus on improving your financial profile:

• Check and fix your credit report: Dispute errors, resolve delinquent accounts, and ensure timely payments.
• Pay down existing debt: Reducing your credit utilization can improve your credit score and your debt-to-income (DTI) ratio.
• Avoid opening new credit lines before applying for a mortgage, as this can temporarily lower your score.
• Compare rates weekly: Lender offers can shift based on market conditions, so it pays to monitor rates over time.

Mortgage rates vary significantly between lenders, even for borrowers with similar profiles. Accepting the first offer you receive could cost you thousands of dollars over the life of your loan.

With today’s competitive lending environment, it’s easier than ever to compare multiple offers using online mortgage comparison tools. These platforms let you:

• View real-time rates from banks, credit unions, and online lenders
• Filter offers by credit score, loan amount, and down payment
• Spot hidden fees and fine-print conditions before applying

📌 Tip: A small difference—like 0.25%—in your interest rate can have a major impact on your total loan cost. That’s why comparing rates is one of the most effective ways to lower your mortgage expenses.

What Are the Different Types of Mortgage Rates?

When shopping for a mortgage, it's important to understand the different types of interest rates. Each type affects how your payments are calculated and how much you'll ultimately pay over the life of the loan.

1. Fixed Rates

A fixed-rate mortgage locks in your interest rate for the entire loan term, typically 15, 20, or 30 years.

✅ Predictable monthly payments

✅ Ideal for long-term budgeting

🚫 May be higher than introductory variable rates

Best for: Buyers who value consistency and plan to stay in their home long-term.

2. Variable (Adjustable) Rates

A variable rate, often called an adjustable-rate mortgage (ARM), can rise or fall based on market conditions after an initial fixed period (e.g., 5/1 ARM = fixed for 5 years, then adjusts annually).

✅ Lower initial rates

🚫 Monthly payments can increase significantly over time

Best for: Borrowers who plan to sell or refinance before the rate adjusts.

3. Amortized Loans

Most mortgages are fully amortized, meaning your monthly payments cover both principal and interest.

• Payments are structured so that in the early years, you mostly pay interest
• Over time, more of your payment goes toward reducing the loan balance
• This structure helps borrowers gradually build home equity

Note: “Amortized” describes how the loan is paid off over time—not the rate type itself.

What Factors Affect Your Mortgage Rate?

Mortgage lenders consider a wide range of financial and personal details when determining the rate you qualify for. These factors reflect the level of risk the lender assumes when issuing your loan:

Employment History & Income Stability

Lenders want to see a consistent income stream. Most prefer at least two years of stable employment at the same job or within the same industry.

• If you're self-employed, expect to provide 2 years of tax returns, profit/loss statements, and proof of ongoing income.
• Gaps in employment or irregular income can raise concerns and result in higher rates or loan denials.

Credit Score

Your credit score remains one of the most influential factors.

• Excellent credit (760+) typically unlocks the best rates.
• Scores under 620 may make it harder to qualify or result in higher rates and stricter loan terms.

FHA Loans in 2026: Borrowers with 580+ credit scores can still qualify with 3.5% down. Those between 500–579 may qualify with a 10% down payment. FHA also allows higher DTI ratios - up to 50%.

Debt-to-Income Ratio (DTI)

Your DTI reflects the percentage of your gross monthly income that goes toward existing debts.

• Most lenders prefer a DTI of 36% or lower.
• A lower DTI suggests more room in your budget and generally leads to lower interest rates.

Down Payment Amount

Putting more money down reduces the lender’s risk.

• A 20%+ down payment usually earns better rates and helps you avoid PMI (Private Mortgage Insurance).
• Putting less than 20% down may increase your rate and add extra monthly costs.

VA Loans in 2026: Eligible veterans and service members may qualify for 0% down, no PMI, and competitive rates. Most lenders prefer a credit score of 620+, but VA loans have no minimum set by the government.

Loan Size

Larger loans (especially jumbo loans) often come with higher interest rates, due to the added risk for lenders.

• Loan amounts above conforming limits (around $766,550 in most U.S. counties in 2026) may require stricter approval and higher rates.

Other Terms & Conditions

Lenders also review:

• Your cash reserves (savings after closing)
• The length of the loan term (e.g., 15 vs. 30 years)
• The property type and location
• Whether you're using the home as a primary residence, second home, or investment

All of these details help lenders determine how risky it is to offer you financing—and influence your final mortgage rate.

How to Find the Right Mortgage Rate for You

A low mortgage rate for one borrower might not be the best fit for another. To truly get the lowest rate that suits your financial situation, you need to compare your options strategically and take advantage of any benefits available to you.

1. Shop Around Regularly

Don’t settle for the first rate you see. Use online comparison tools, lender marketplaces, and mortgage calculators to view side-by-side offers. Even a 0.25% difference can save you thousands over the life of your loan.

2. Don’t Be Afraid to Negotiate

Mortgage rates aren’t always set in stone. If you have a strong profile or competing offers, ask your lender to match or beat a competitor’s rate. You may also negotiate origination fees or closing costs as part of the deal.

3. Read the Fine Print

A low advertised rate might come with high fees, rigid terms, or limited flexibility. Always review the APR, loan term, prepayment penalties, and PMI requirements before signing anything.

4. Look Into Special Programs

You may qualify for discounted rates or more favorable terms without realizing it:

• Veterans and service members: May qualify for a VA loan — 0% down, no PMI, and competitive rates.
• First-time homebuyers: May be eligible for federal, state, or local assistance programs.
• Credit union members: Often receive preferred rates or reduced fees.

Pro tip: Always ask lenders if you qualify for special promotions, discounts, or government-backed loans that could help you get a lower mortgage rate.

What to Consider Beyond Just the Interest Rate

While a low mortgage rate is important, it's just one part of the total cost of borrowing. To truly get the best deal, you need to consider all the hidden costs and conditions that can impact your long-term financial health.

1. Fees and Closing Costs

Your mortgage involves more than monthly payments.

Common extra costs include:

• Real estate taxes
• Homeowners, title, and PMI insurance
• Closing costs (e.g., appraisal, origination, and credit report fees)
• Legal and administrative fees, such as escrow, document prep, recording fees, and inspections

📌 These fees can add thousands of dollars to your total cost. Always request a full loan estimate and compare line by line between lenders.

2. Lender Reputation & Support

You’ll be entering a long-term financial relationship, possibly for decades. Choose a lender with:

• Transparent communication
• Responsive customer service
• Strong online reviews

A good lender should explain complex terms and guide you confidently through the process—not rush or confuse you.

3. Repayment Terms

Mortgage terms typically range from 10 to 30 years. Consider:

• Shorter terms = higher monthly payments but lower total interest
• Longer terms = lower monthly payments but higher overall cost

Make sure the loan term fits your income, lifestyle, and long-term goals.

4. APR (Annual Percentage Rate)

The APR gives you a true snapshot of your loan’s cost, including interest + fees.

Unlike the base interest rate, APR helps you compare loan offers more accurately across different lenders.

Look for a low APR, not just a low interest rate.

5. How Are Mortgage Rates Set?

Mortgage rates are primarily driven by the secondary mortgage market, where investors buy and sell loans from lenders.

Here’s what influences your rate:

• Federal Reserve policy
• Inflation trends
• Demand for mortgage-backed securities (MBS)
• U.S. Treasury yields

Lenders balance between offering attractive rates to borrowers while ensuring returns for investors. As a result, rates fluctuate based on market conditions and overall economic outlook.

Bottom Line: Lowest Rate Isn’t Always Best

While it’s tempting to focus solely on finding the lowest interest rate, the right mortgage depends on much more — including the lender’s reputation, loan terms, fees, customer support, and how well the repayment plan fits your financial goals.

For example, a 30-year borrower won’t benefit from a lower rate if the lender only offers 20-year terms. Always look at the big picture before choosing a lender.

👉 Want help comparing mortgage lenders? Check out our in-depth mortgage lender reviews to find the best fit for your needs.

Frequently Asked Questions About Getting Lower Mortgage Rates

1. How can I qualify for a lower mortgage rate?

To get a lower mortgage rate, work on improving your credit score (ideally above 740), reduce your debt-to-income (DTI) ratio, make a larger down payment, and maintain a stable employment history. Comparing lenders is also key, as different banks offer different rate tiers.

2. Does my credit score directly affect my mortgage rate?

Yes. Your credit score is one of the most important factors lenders consider. Borrowers with higher scores — typically 760 or above — qualify for the lowest mortgage rates. Scores under 620 may result in higher rates or stricter loan conditions.

3. Can I negotiate my mortgage rate with a lender?

In many cases, yes. Especially if you have strong credit or multiple offers, lenders may be willing to match or beat competing rates. You can also try to negotiate closing costs or waive certain fees as part of your loan package.

4. Is a fixed-rate or variable-rate mortgage better for getting a low rate?

Fixed-rate mortgages offer stable long-term rates, while variable (adjustable) rates may start lower but can rise over time. If you're planning to stay in the home short-term, a variable-rate mortgage might save you money upfront. For long-term stability, fixed rates are often safer.

5. Are government-backed loans like FHA or VA good for getting lower rates?

Yes. FHA and VA loans often have lower rates and more flexible approval requirements. FHA loans allow borrowers with credit scores as low as 580 to qualify with 3.5% down. VA loans for eligible veterans offer 0% down and no PMI, often with competitive rates.

6. How much does a 0.5% difference in mortgage rate actually save?

A 0.5% lower interest rate on a 30-year mortgage can save you tens of thousands of dollars in interest over the life of the loan. For example, on a $300,000 mortgage, lowering the rate from 7.5% to 7.0% could save over $30,000 in interest payments.