How to Shop for a Mortgage and Compare Offers
When you shop around for a mortgage, you’re not just asking several lenders for rate quotes. You’ll need to get comparable loan estimates, review how much each offer would cost you upfront and over time, and decide which tradeoffs fit your finances and plans.
The right choice depends on how much you can afford upfront, your monthly budget and how long you expect to keep the loan, among other factors. A mortgage with the lowest interest rate, for example, may not be the best deal if it requires significantly higher points or fees.
Below, we’ll explain how to shop for a mortgage by comparing rates, fees, monthly payments and total loan costs to choose the offer that most fits your needs.
1. Decide what mortgage you’re shopping for
Before you request quotes, decide on the basic loan terms you want lenders to price. This makes it possible to compare offers side by side; otherwise, one lender could appear cheaper simply because the quote is based on different assumptions.
Try to keep these details consistent across lenders:
- Loan amount: Have a budget in mind before you start shopping. Don’t automatically borrow the maximum amount you qualify for — focus on a payment and upfront cost that fit comfortably within your finances.
- Down payment: Use the same down payment percentage or dollar amount for each quote.
- Loan program: Compare the same mortgage type, such as conventional, Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) or U.S. Department of Agriculture (USDA).
- Loan term: Keep the repayment period consistent, such as a 30-year or 15-year mortgage.
- Fixed or adjustable-rate mortgage (ARM): Compare fixed-rate loans with other fixed-rate loans, and ARMs with similar ARMs.
- Property and occupancy type: Make sure each lender is pricing the same property type and the same intended use. Offers for an investment property or second home won’t be comparable to offers for a primary residence.
Use LendingTree’s home affordability calculator to estimate how much home you can afford.
2. Get quotes from multiple lenders
When you’re ready to start comparing loan offers, get quotes from at least three lenders and, when possible, request them around the same time. Mortgage rates can change from day to day, so comparing offers that are based on similar market conditions can make it easier to evaluate them side by side.
Borrowers who compare offers from multiple lenders can save significantly over the life of their mortgage, according to LendingTree data. In LendingTree’s analysis, mortgage shoppers saved $62,572 on average.
There are several ways you can get rate offers:
- Try an online comparison site like LendingTree. You can submit your information once and compare offers from multiple lenders, which can make it easier to request quotes around the same time and compare similar loan options.
- Contact lenders yourself. If you prefer to speak to someone, you can call or visit several lenders to get their quotes.
Not sure which lenders to reach out to? Check out our guide to choosing a mortgage lender.
How it works when you use LendingTree to shop
Enter your information once and view offers from multiple lenders within minutes!
3. Compare interest rates and APRs
Once you have at least three loan estimates in hand, the first thing you’ll likely want to know is which lender is offering you the best mortgage rate. It’s not always as simple as looking at a single number, however. Here’s what you need to know:
The difference between APRs and interest rates
Your annual percentage rate (APR) is disclosed on Page 3 of your loan estimate and reflects the total cost of getting a mortgage. It’s different from the interest rate, which only tells you the cost of borrowing the money. Generally speaking, the bigger the difference between your APR and interest rate, the more you’re paying in closing costs. However, it’s still a good idea to compare the itemized costs on the loan estimate to make sure you’re getting the best deal.
Check whether you’re paying points for a lower rate
When you compare mortgage offers, don’t assume the lender with the lowest interest rate is offering the best deal. Lenders can structure mortgage costs in different ways, with some charging more upfront in exchange for a lower rate and others offering a higher rate with lower upfront costs.
For example, let’s say you received these three offers:
| Offer A
This is an example of a traditional, “full-cost” mortgage. You pay the full amount of your closing costs upfront, which allows you to get a lower interest rate than an option where the lender covers some of those costs.
| Offer B
This is an example of a mortgage with discount points. You pay an upfront fee in exchange for a lower interest rate.
| Offer C
This is an example of a “no-cost” mortgage. You pay fewer closing costs upfront, but the lender charges a higher interest rate or otherwise increases the cost of the loan.
|
|
|---|---|---|---|
| Interest rate | 6.50% | 6.75% | 6.95% |
| Discount points | $0 | $2,000 | $0 |
| Total upfront costs | $5,000 | $7,000 | $0 |
At first glance, Offer A may look best because it has the lowest interest rate. Offer B has a slightly higher rate but requires more money upfront because it includes discount points, while Offer C has the highest rate but no upfront costs. Which offer is best depends on your budget, how long you expect to keep the mortgage and whether the savings from a lower rate justify the additional upfront costs.
This is why it’s important to compare the interest rate and the costs required to get that rate.
Takeaway: When comparing offers, look beyond the interest rate. Review the points, lender fees, credits and other loan costs together to determine which offer provides the best overall value for your situation.
If one offer has a lower rate but higher upfront costs, a break-even calculation can help you determine how long it would take for the monthly savings from the lower rate to make up for those additional upfront costs.
You simply divide the total costs by the monthly savings to determine how many months it’ll take to recoup your costs.
For example, if you spend $5,000 to get a rate that saves you $100 per month, your break-even point is 50 months — just over four years — which is how long it would take to recover the $5,000 you spent to get a lower interest rate.
4. Compare lender fees and closing costs
When you’re comparing loan estimates, pay attention to the total closing costs. You can find them listed on page 2 of your loan estimate.
You’ll want to carefully review two different types of costs:
| Lender-specific costs | Other costs |
|---|---|
|
|
Don’t assume an offer is worse just because its total “cash to close” is higher. Determine which differences the lender actually caused.
5. Compare monthly payments and long-term loan costs
Once you’ve compared rates and fees, look at how each offer affects both your monthly budget and your total borrowing costs. A loan with a lower rate may still cost more overall if it includes higher upfront fees, mortgage insurance or other charges.
Compare these items:
- Monthly principal and interest: See how much you’ll owe each month based on the mortgage balance, interest rate and repayment term.
- Mortgage insurance: If required, factor mortgage insurance — whether it’s private mortgage insurance or government-backed — into the monthly payment.
- Total monthly payment: Compare the full housing payment when possible, not just principal and interest.
- Five-year cost: If you expect to move or refinance within several years, compare how much each loan will cost over that period, including interest and upfront loan costs.
- Total interest paid: If you expect to keep the mortgage long term, compare how much interest you could pay over the life of each loan.
As you compare offers, also consider how long you expect to keep the loan. If you expect to sell or refinance within a few years, the five-year cost and upfront fees may matter more than lifetime interest. If you expect to keep the loan for much longer, a lower rate may provide greater savings over time, even if it comes with higher upfront costs.
6. Use competing offers to negotiate
Once you’ve compared your loan estimates, use the strongest offer as leverage with the other lenders you’re considering. Lenders may be willing to improve certain terms to win your business.
Here’s how the negotiating process might look:
- Identify the strongest overall offer. Compare your offers to determine which lender is giving you the best overall deal, considering all the factors we’ve discussed so far. Once you’ve identified the offer that provides the most value for your situation, you can use it as a benchmark when negotiating with other lenders.
- Share the competing loan estimate. Ask another lender whether they can match or beat the offer.
- Ask about specific improvements. Depending on the offer, you can negotiate a lower rate, fewer points, reduced lender fees or additional lender credits.
- Request an updated loan estimate. Make sure any revised terms are reflected in writing.
- Compare the updated offers again. Recheck the mortgage rate, APR, fees, credits and cash to close before making a final decision.
Keep the comparison “apples to apples.” If a lender offers a lower rate but adds points or reduces lender credits, the revised offer may not actually be cheaper. Compare the full cost of each updated offer rather than focusing on a single number.
7. Choose the best mortgage offer
There isn’t one metric that will identify the best offer for every borrower. Instead, take a holistic look at your situation and consider the trade-offs among:
- Monthly payment: Which offer gives you a monthly payment that fits comfortably within your budget?
- Upfront costs: How much will you need to pay at closing, including lender fees and points?
- Longer-term costs: If you plan to sell or refinance within a few years, lower upfront costs may matter more. If you expect to keep the mortgage much longer, paying more upfront for a lower rate could save you more over time.
- Lender experience: Cost matters, but so do factors like customer service and the lender’s ability to close on time. So take time to evaluate whether the lender is the right fit for you.
Remember: The best mortgage isn’t necessarily the one with the lowest interest rate or the lowest cash to close amount. It’s the offer that gives you the best combination of upfront affordability, monthly affordability and long-term value for your plans.
Check out LendingTree’s list of the best mortgage lenders of 2026.
Frequently asked questions
If you’re planning to buy a home within the next 90 days, you should start shopping now. You’ll want to research available loan programs, review your credit reports and scores, and choose the right mortgage type long before you start making offers. This ensures that there are no surprises once your offer is accepted.
If you’re applying for a mortgage refinance, you should start shopping once you’ve determined whether the cost outweighs the benefit of refinancing. A refinance calculator can help you decide.
A marketplace like LendingTree or a mortgage broker can be especially useful for first-time homebuyers, borrowers with bad credit or people with more complicated finances, because it gives them access to a wider range of lenders.
Borrowers with excellent credit may find competitive offers directly from a bank or credit union, while those who need to close quickly may benefit from an online lender with a more streamlined digital process.
Boosting your credit score, making a bigger down payment and shopping with at least three to five different lenders are great ways to get the best rate.
No, as long as you shop within a short window. Credit bureaus treat multiple mortgage inquiries made within a set period (typically 14 to 45 days) as a single inquiry, since they recognize that you’re rate shopping rather than applying for multiple separate loans.
Compare Multiple Prequalification Offers