How Similar Mortgage Borrowers Are Getting Very Different Rates | Mortgages

Borrowers with nearly identical credit profiles can receive different mortgage rates. In the August 2026 ICE Mortgage Monitor report, the average spread was 38 basis points among conforming loan borrowers with similar profiles. That can make a meaningful difference in how much you pay in interest each month and over the life of your loan, and you might overpay if you don’t compare loan offers.

Even borrowers with nearly identical profiles could differ in ways that affect pricing. Those can include loan-to-value ratio, down payment, property type, occupancy, loan amount and loan program.

“Two people can look almost the same on paper and still land on different quotes because one piece of that list is different,” says Ashley Harris, director of homebuyer education for Neighbors Bank. “One might be putting down a little more, or choosing a different term.”

Bill Lyons, president and CEO of Griffin Funding, reminds homebuyers that the rate isn’t priced only on the borrower but on the lender, too. “Every lender has its own cost of funds, its own margin target, its own investors buying its loans and its own appetite on any given day,” he says.

Rates vary among lenders enough that shopping at least three lenders within the same time window can make a difference.

Thao Le, assistant professor of the department of real estate at Georgia State University’s Robinson College of Business, recommends comparing offers from different types of lenders, such as:

Borrowers should request apples-to-apples quotes, which would require getting quotes on the same day for the same loan amount and loan type. They should have the same down payment, lock period, and point and credit structure.

Harris recommends asking for quotes with no discount points or lender credits, so it’s easier to cleanly compare quotes across lenders.

As you compare mortgage quotes, focus on the rate, but don’t overlook other key terms. These include discount points, fees, credits, lock period, monthly payment and cash to close.

Le says the APR accounts for the interest rate and finance charges, which can give you a better idea of the mortgage’s true cost.

“Borrowers need to also pay attention to mortgage insurance, which increases their total monthly payment,” says Le. “For example, a loan may offer a lower interest rate but require a large monthly mortgage insurance fee.”

With multiple loan estimates, you can try to negotiate a better offer. A lender might be willing to match or beat a rate you got from another lender, or reduce fees, adjust points or increase lender credits.

Harris urges borrowers to compare the full offer, not just the rate. A lender could match a lower rate by charging more points, for example. It’s best if competing estimates have the same loan type, amount, lock period, point structure and property assumptions.

Comparison shopping can help all homebuyers, but ICE found spreads of 47 basis points for FHA borrowers and 48 basis points for VA borrowers. That’s wider than the 38-basis-point spread for conforming loans.

“FHA and VA set the rules for the loan, but they don’t set the interest rate you get,” says Harris. “The lender does, and rates, discount points and lender fees can vary quite a bit from one lender to the next.”

Some lenders have stricter internal requirements than the minimums set by the FHA and VA, and that can affect qualification and pricing.

After shopping multiple lenders, you may find that the loan with the lowest advertised rate isn’t the overall best deal. A loan with a slightly higher rate might have lower fees, fewer discount points or better lender credits.

Also consider how long you expect to keep the mortgage, as it could make sense to pay discount points for a lower rate if you plan to stay in the home for several years.

Service matters, too. A lender with competitive pricing that communicates clearly and closes on time might be a better overall choice than the cheapest offer.

“The cheapest quote is not necessarily the best option if the lender is difficult to work with or has very long processing times,” says Le.