What is a good mortgage rate?
Compare to current market average (Freddie Mac PMMS). A "good" rate is 0.125-0.5% below average for your specific FICO and LTV.
"Good" is relative to current market. The Freddie Mac Primary Mortgage Market Survey (PMMS) publishes a weekly national average for 30-year fixed conventional mortgages - this is the benchmark. A "good" rate for your scenario is typically 0.125-0.5% below the PMMS average. Why the variation: PMMS reflects the average across all FICO scores, LTVs, and locations. Your specific scenario may price meaningfully different. 740+ FICO, 80% LTV, primary residence: typical to find rates at PMMS or slightly below. 680 FICO, 90% LTV: typical to be 0.5-1.0% above PMMS. Investment property: 0.5-1.0% above primary residence. Always compare apples-to-apples: same scenario, same lock period, same points. Watch for "teaser rates" that require buying multiple discount points - the headline rate may look great but the APR (which includes points) tells the real cost story. APR is the better comparison metric across lenders.
People also ask
Should I lock my rate now or wait?
Lock when the rate works for your scenario, period. Trying to time the market rarely works. Float-down options (lock now but get the lower rate if rates drop) are available at some lenders.
Are no-points rates always best?
No. If you plan to keep the loan 7+ years, paying 1-2 points to buy down the rate often pays back via monthly savings. If you might refinance or sell within 3-5 years, no points is usually better.
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APR (Annual Percentage Rate)
Total cost of a mortgage expressed as a yearly rate, including interest plus most loan fees and mortgage insurance.
Note Rate
The actual interest rate written on your mortgage promissory note — the rate used to calculate your monthly payment.
Points (Discount Points)
Optional upfront payment to the lender to reduce your interest rate. One point equals 1% of loan amount.