IMortgage rates remain range-bound with only minor adjustments to loan pricing by leading lenders. The tax assistant weekly survey ranks lenders by the lowest annual percentage rate (APR), which includes lender fees. Read on to see the 10 lenders with the lowest rates this week.
Mortgage lenders with the best rates: August 31, 2026
Here are the 10 mortgage lenders with the best interest rates this week, as determined by our survey of the lowest mortgage rates on 30-year, fixed-rate conventional loans. The following numbers are each lender’s annual percentage rate (APR).
- Better:Â 6.385%
- Navy Federal Credit Union:Â 6.406%
- PenFed Credit Union:Â 6.446%
- Flagstar Bank: 6.466%
- Citi Mortgage:Â 6.498%
- Chase Home Loans:Â 6.673%
- Truist:Â 6.694%
- Wells Fargo:Â 6.783%
- U.S. Bank: 6.791%
- Third Federal: 6.799%
Higher fees don’t mean lower rates
Mortgage rates don’t have hidden fees, but borrowers who don’t shop more than one lender often pay more for a rate they can get elsewhere for less. As you can see from our lender ranking table below, mortgage rates remain clustered near 6.5% among the lenders with the lowest rates; however, the discount points charged vary widely.
Of the 16 national lenders surveyed on August 31, Fifth Third Bank, Citizens Bank, Rate, Rate, PNC Bank, Bank of America, and Rocket Mortgage did not rank among the top 10 lenders sorted by annual percentage rates. An APR difference of 0.769 percentage point separated the top lender, Better Mortgage, from the bottom-ranked Rocket Mortgage.Â
That’s further proof that shopping multiple lenders can lead to significant savings.
Important note: Sample mortgage rates use generic data
These are sample mortgage rates found on lender websites and are based on generic assumptions. Lenders advertise 30-year mortgage rates based on varying credit scores, down payments, and other credit qualifications. Even where you live affects your mortgage rate.
Your rate will be based on your particular credit profile.
If a mortgage lender required additional borrower information to provide a sample rate, we supplied a median home value and credit score, with a 20% down payment based on a home located in the Midwest.
How to shop for mortgage rates
The key to securing the lowest mortgage rate is shopping around, which could save borrowers up to an average of $44,000 over the life of a 30-year loan, according to an analysis by Realtor.com.
Focus on the APR
We’re also looking for details that you will want to consider. Often, borrowers focus on the offered interest rate, as that’s what lenders typically highlight. However, the mortgage annual percentage rate, or APR, is the most important number.
APR includes both the interest rate and lender fees (for example, the mortgage origination fee), so it is the most accurate measure of your annual borrowing costs.
Discount points are an option
Lenders often include mortgage discount points to lower the interest rate they offer. That’s where things can get confusing.Â
First off, discount points are prepaid interest — an up-front fee paid at closing that reduces your interest rate. Although lenders often include discount points in their advertised rates online, buying points is optional.
Each point represents 1% of your loan amount and generally lowers your interest rate by about 0.25%. For example, one point on a $400,000 mortgage would cost $4,000 and reduce a 6.75% home loan to 6.50%.
Just remember, no matter what the lender puts in an advertised rate or in a loan offer, when you get a loan estimate and you see discount points under the lender fees section, you can say “no” and have them removed. But your rate will be higher.
Simplify your mortgage rate shopping process
If possible, when shopping with three or more lenders, have each of them provide a quote for a mortgage rate with zero discount points. Then, focus on the APR for an accurate side-by-side comparison of rates and fees.
How we determined the mortgage lenders with the lowest rates
See the table below to understand the tax assistant methodology for determining which mortgage lenders have the best rates this week. Remember, we are sorting by APR, which includes both the interest rates and mortgage lender fees, including points.
Mortgage lenders ranked by APR: August 31, 2026
| Rank | Lender | Advertised 30-yearfixed rate | APR | Points/notes |
|---|---|---|---|---|
| 1 | Better Mortgage | 6.125% | 6.385% | 2.28 points |
| 2 | Navy Federal | 6.250% | 6.406% | 0.625 point |
| 3 | PenFed Credit Union | 6.25% | 6.446% | 1.25 points and 1% origination fee |
| 4 | Flagstar Bank | 6.375% | 6.466% | 1 point and $1,295 origination fee |
| 5 | Citi Mortgage | 6.375% | 6.498% | 0.875 point |
| 6 | Chase Home Loans | 6.490% | 6.673% | 1.875 points |
| 7 | Truist Bank | 6.490% | 6.694% | 0.944 point |
| 8 | Wells Fargo | 6.625% | 6.783% | 0.85 point |
| 9 | U.S. Bank | 6.625% | 6.791% | 0.831 point |
| 10 | Third Federal | 6.750% | 6.799% | 0 points |
| 11 | Fifth Third Bank | 6.750% | 6.918% | 0.25 point |
| 12 | Citizens Bank | 6.875% | 6.953% | 0.25 point |
| 13 | Rate | 6.575% | 6.963% | 1.224 points |
| 14 | PNC Bank | 6.875% | 7.021% | 0.596 point |
| 15 | Bank of America | 6.875% | 7.030% | 0.734 point |
| 16 | Rocket Mortgage | 6.875% | 7.154% | 1.75 points |
Some advertised rates required no additional information. When asked for details, we used the U.S median home sales price of $410,800, a 20% down payment ($82,200; $328,600 loan), the current median FICO credit score of 715, and the ZIP code for Indianapolis, IN (46077)
The advertised interest rate is the base percentage used to calculate your monthly principal and interest payments. The Annual Percentage Rate (APR) includes both that interest rate and additional lender fees (such as origination fees or discount points). APR provides a more accurate picture of the total annual cost of borrowing.
Discount points are optional upfront fees paid at closing to lower your overall interest rate—typically, 1 point costs 1% of the loan amount and reduces your interest rate by around 0.25%. While lenders often include points in their advertised lowest rates online, you can request to have them removed, though doing so will raise your interest rate.
Lenders are ranked by APR rather than their advertised interest rate. A lender offering a low interest rate might charge high upfront discount points or origination fees, driving up its overall APR. For example, Third Federal ranked in the top 10 with a 6.750% interest rate because it required 0 points, keeping its APR close to its advertised rate.
According to Realtor.com analysis referenced in the survey, shopping around with multiple lenders can save borrowers up to an average of $44,000 over the life of a 30-year loan. In this specific survey, an APR spread of 0.769 percentage points separated the lowest-ranked lender from the top-ranked lender.
To get a true side-by-side comparison, ask at least three different lenders for a quote based on zero discount points. Comparing the resulting APRs allows you to see which lender is actually offering the best deal without hidden or unequal upfront costs skewing the figures.
Manoj Sharma is a Senior Writer on the banking team at Tax Assistant. He provides information on budgeting, bank accounts, the banking industry, and other related topics. Using original data and methodologies, he helps you identify the best financial institutions, accounts, and products tailored to your needs. Manoj holds a degree in Journalism and Political Science from Syracuse University. All articles are strictly reviewed and fact-checked by our panel of expert Chartered Accountants, including CA Devendra Saini, CA Nikhil Khunteta, and CA Ankit Goyal
