What is a mortgage and how does it work?

A mortgage is a loan from a bank or other financial institution that helps a borrower purchase a home. The collateral for the mortgage is the home itself. That means if the borrower doesn’t make monthly payments to the lender and defaults on the loan, the lender can sell the home and recoup its money. A mortgage loan is typically a long-term debt taken out for 30, 20 or 15 years. Over this time (known as the loan’s “term”), you’ll repay both the amount you borrowed as well as the interest charged for the loan. Learn more: What is a mortgage?

Should you lock in your mortgage rate?

A mortgage rate lock guarantees (with a few exceptions) that the interest rate offered to you will remain available for a set period of time. With a lock, you won’t have to worry if market rates go up between the time you find a home, submit an offer and close. Most lenders offer a 30- to 45-day rate lock free of charge. Often, you’ll need to pay a fee to extend the lock period. Some lenders also offer a “float down” option, which allows you to lower your locked rate if prevailing rates fall — though you’ll likely have to pay a fee for this perk, too.Learn more: What is a mortgage rate lock?

How much are closing costs on a mortgage?

The closing costs on a mortgage encompass all of the fees associated with the loan, including the lender’s charges, typically an origination fee often equal to 1 percent of the loan principal and optional points. Closing costs also include third-party fees like the cost of an appraisal and title insurance. All together, these usually run anywhere from 2 percent to 5 percent of the amount you’re borrowing, above and beyond your down payment.Learn more: Mortgage closing costs

Who are the best mortgage lenders?

Depending on your needs, the best mortgage lenders are often the ones that offer the most competitive rates and fees, stellar customer service and convenience.Learn more: Best mortgage lenders in 2025

Compare current mortgage rates for today

On Sunday, July 19, 2026, the national average 30-year fixed mortgage APR is 6.68%. The average 15-year fixed mortgage APR is 6.10%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

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Showing results for: Single-family home, 30 year fixed and 15 year fixed mortgages with all points options.

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Mutual of Omaha Mortgage 15 Year Fixed

NMLS #1025894

Rate as of 7/19/26: 5.625%
APR: 5.896%
Points: 1.518
Monthly payment: $8,633
Upfront costs: $18,1478 year cost: $397,157
Customer score

Sage Home Loans 15 Year Fixed

NMLS #3304 | State Lic: 4130722

Rate as of 7/19/26: 5.750%
APR: 6.045%
Points: 1.734
Monthly payment: $8,703
Upfront costs: $19,6668 year cost: $407,767
Customer score

Tomo Mortgage 15 Year Fixed

NMLS #2059741

Rate as of 7/19/26: 5.750%
APR: 6.085%
Points: 1.749
Monthly payment: $8,724
Upfront costs: $19,8308 year cost: $407,931
Customer score

Tomo Mortgage 30 Year Fixed

NMLS #2059741

Rate as of 7/19/26: 5.875%
APR: 6.085%
Points: 1.844
Monthly payment: $6,215
Upfront costs: $20,8268 year cost: $485,416
Customer score

Mutual of Omaha Mortgage 30 Year Fixed

NMLS #1025894

Rate as of 7/19/26: 6.125%
APR: 6.309%
Points: 1.711
Monthly payment: $6,368
Upfront costs: $20,1698 year cost: $505,694
Customer score

Sage Home Loans 30 Year Fixed

NMLS #3304 | State Lic: 4130722

Rate as of 7/19/26: 6.125%
APR: 6.309%
Points: 1.789
Monthly payment: $6,368
Upfront costs: $20,2438 year cost: $505,768
Customer score

New American Funding 30 Year Fixed

NMLS #6606

Rate as of 7/19/26: 7.125%
APR: 7.337%
Points: 1.852
Monthly payment: $7,061
Upfront costs: $21,9088 year cost: $591,176
Customer score

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About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our “Advertisers”). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a “Next” button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.

Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Click here for rate criteria by loan product.

Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertisers phone number when you click-through to their website. In addition, credit unions may require membership.

Loans Above $832,750 May Have Different Loan Terms: If you are seeking a loan for more than $832,750, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.

Taxes and Insurance Excluded from Loan Terms: The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included.

Consumer Satisfaction: If you have used Bankrate.com and have not received the advertised loan terms or otherwise been dissatisfied with your experience with any Advertiser, we want to hear from you. Please click here to provide your comments to Bankrate Quality Control.

How to compare mortgage rates

The rates you see advertised here might not exactly match the rate you're offered due to factors like your credit score, down payment and more. Still, getting the best rate can make a big difference in your monthly budget, and potentially thousands saved in interest over the life of the loan. It’s been proven: Shopping with multiple lenders can save you up to $1,200 a year.

Learn more: How to get a mortgage

Factors that determine your mortgage rate

Your mortgage rate depends on a number of factors, including your individual credit profile and what’s happening in the broader economy. These variables include:

Your credit and finances: The better your credit score and higher your income compared to your debt, the better interest rate you’ll get.
Loan size and type: The size of your loan, down payment and the type of loan all affect your mortgage rate.
Location of the property: Rates vary based on where the property is located.
Whether you’re a first-time homebuyer: Many first-time homebuyer loan programs include a lower-rate mortgage.
Economic factors: Broadly, mortgage rates are impacted by forces like the Federal Reserve, inflation and investor appetite.
The lender you work with: Lenders set rates based on many factors, including their own supply and demand.
Mortgage points: Also known as discount points, these additional fees reduce your interest rate. Decide whether they're worth it with our guide to mortgage points.

Learn more: How to compare mortgage offers

How does the Federal Reserve affect mortgage rates?

Like any other financial product, the cost of a mortgage fluctuates with the happenings of the economy, including Federal Reserve decisions. The central bank doesn’t set specific mortgage rates, but its policies set the tone for what banks and other lenders charge for loans.

Learn more: How the Fed impacts mortgage rates

How to refinance your current mortgage

The process of refinancing your mortgage isn’t much different from when you applied for your original mortgage, though it typically costs less and takes less time. Borrowers choose to refinance for many reasons — a lower rate, cashing out equity, removing a co-borrower and more. When you're ready to refi, compare refinance rates and do the math with our refinance calculator.

Learn more: When to refinance

Next steps to getting a mortgage

Before you start applying for a mortgage, here are some mortgage resources to prepare you for the process:

How to improve your credit score to get a mortgage

The higher your score, the better your approval chances, and the lower the interest rate.

How to save for a down payment

Saving the big chunk of cash you'll need upfront can be tough. These tactics help.

How to choose a mortgage lender

Getting a good loan starts with choosing the right lender.

Income requirements to qualify for a mortgage

Your income helps determine how much you can borrow.

Mortgage FAQ

A mortgage is a loan from a bank or other financial institution that helps a borrower purchase a home. The collateral for the mortgage is the home itself. That means if the borrower doesn’t make monthly payments to the lender and defaults on the loan, the lender can sell the home and recoup its money. A mortgage loan is typically a long-term debt taken out for 30, 20 or 15 years. Over this time (known as the loan’s “term”), you’ll repay both the amount you borrowed as well as the interest charged for the loan.

Learn more: What is a mortgage?
A mortgage rate lock guarantees (with a few exceptions) that the interest rate offered to you will remain available for a set period of time. With a lock, you won’t have to worry if market rates go up between the time you find a home, submit an offer and close. Most lenders offer a 30- to 45-day rate lock free of charge. Often, you’ll need to pay a fee to extend the lock period. Some lenders also offer a “float down” option, which allows you to lower your locked rate if prevailing rates fall — though you’ll likely have to pay a fee for this perk, too.

Learn more: What is a mortgage rate lock?
The closing costs on a mortgage encompass all of the fees associated with the loan, including the lender’s charges, typically an origination fee often equal to 1 percent of the loan principal and optional points. Closing costs also include third-party fees like the cost of an appraisal and title insurance. All together, these usually run anywhere from 2 percent to 5 percent of the amount you’re borrowing, above and beyond your down payment.

Learn more: Mortgage closing costs
Depending on your needs, the best mortgage lenders are often the ones that offer the most competitive rates and fees, stellar customer service and convenience.

Learn more: Best mortgage lenders in 2025

Meet our Bankrate experts

Written by: Jeff Ostrowski, Writer and Housing Market Analyst

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

	30 year fixed	6.62%
	15 year fixed	6.00%
	10 year fixed	5.92%
	5/1 ARM	6.31%