Mortgage rates can feel like a moving target — and in a lot of ways, they are. Rates shift daily based on the broader market, but the rate you actually qualify for depends on factors specific to you. Here’s what shapes your rate, how it differs from APR, and how a rate lock protects you once you find a number you’re comfortable with.

Several factors work together to determine the rate a lender offers you:

• Credit score. Generally, stronger credit history leads to more favorable pricing, though every loan program has its own thresholds.
• Down payment. A larger down payment typically reduces the lender’s risk, which can favorably affect your rate.
• Loan type and term. FHA, VA, USDA, conventional, and jumbo loans are priced differently, and shorter-term loans are often priced differently than longer-term ones.
• Loan-to-value ratio. How much you’re borrowing relative to the home’s value plays a role.
• Market conditions. Broader economic factors — inflation, Federal Reserve policy, and bond market movement — influence the rate environment for everyone, regardless of individual qualifications.
• Discount points. Some borrowers choose to pay points upfront in exchange for a reduced rate over the life of the loan.

Because so many of these factors are personal to your situation, the only way to know what you actually qualify for is to talk with a loan officer directly — a generic rate you see advertised elsewhere may not reflect what’s available to you.

Your interest rate is the cost of borrowing the loan amount itself, expressed as a percentage. Your APR (Annual Percentage Rate) is a broader number — it includes your interest rate plus certain fees and costs associated with the loan, giving you a fuller picture of the loan’s total cost over time. When comparing offers between lenders, APR is often the more useful number to compare, since two loans with the same interest rate can have very different APRs depending on fees.

A fixed-rate mortgage locks your interest rate for the entire life of the loan — your payment amount tied to principal and interest won’t change. An adjustable-rate mortgage (ARM) typically starts with a lower introductory rate for a set period, then adjusts periodically based on market conditions. Which one makes sense depends on how long you plan to stay in the home and your comfort with potential payment changes down the road. Explore our loan options to see which programs are available to you.

Once you’ve found a rate you’re comfortable with, a rate lock protects that rate for a set period of time while your loan moves through processing and underwriting — even if market rates move up before you close. Lock periods vary by lender and loan program, and some lenders offer float-down options that let you take advantage of a rate improvement even after locking. Your loan officer can walk you through the lock options available on your specific loan.

A few things within your control that can help:

• Check your credit report and address any errors or issues well before you apply.
• Pay down existing debt where possible — your debt-to-income ratio matters.
• Save toward a larger down payment if your timeline allows.
• Get pre-qualified early so you know where you stand before you start house hunting.
• Ask questions. A good loan officer will walk through your options rather than just quoting a single number.

Rates are just one part of the picture — down payment options, loan programs, and the overall process all factor into finding the right fit. Check out our FAQ page for answers to the questions we hear most, or get a free, personalized quote to see what you actually qualify for.