Finding the best mortgage rates in 2026 is about more than searching for the lowest number online. Your rate depends on your credit profile, loan type, down payment, property, income, and the lender you choose.
The good news is that you have options. Whether you are buying a home, refinancing a home loan, or comparing HELOC rates, we can help you understand your choices and find a solution that fits your financial goals.
What Are the Best Mortgage Rates in 2026?
Mortgage rates change frequently, so there is no single rate that is best for every borrower.
According to Freddie Mac’s Primary Mortgage Market Survey, the national average as of September 10, 2026, was:
- 30-year fixed mortgage: 6.76%
- 15-year fixed mortgage: 6.09%
These figures are useful benchmarks, but they are not personal rate quotes. Freddie Mac’s averages are based on a specific borrower and property profile. Your offer may be higher or lower depending on your qualifications and loan program.
A competitive rate is only one part of a good mortgage. You should also compare:
- Annual percentage rate, or APR
- Closing costs
- Discount points
- Lender credits
- Mortgage insurance
- Rate-lock period
- Estimated monthly payment
- Total interest over the life of the loan
A slightly lower rate may not be the best deal if it requires significant upfront points or higher fees.
Why Does Your Mortgage Rate Change From One Borrower to Another?
Lenders price loans based on risk. When your application shows a lower likelihood of missed payments, you may qualify for more competitive pricing.
Here are the main factors that affect your mortgage rate.
1. Credit score and credit history
Your credit score is one of the most important factors in mortgage pricing. A stronger score may help you qualify for a lower rate and give you access to more loan options.
Before applying, consider:
- Paying down credit card balances
- Avoiding new credit accounts
- Checking your credit reports for errors
- Making every payment on time
- Avoiding large financed purchases
A higher score does not guarantee a specific rate, but it can improve your overall mortgage options.
2. Down payment and loan-to-value ratio
Your loan-to-value ratio, or LTV, compares the amount you borrow with the value of the home. A larger down payment usually lowers your LTV and may reduce lender risk.
A larger down payment may also help you:
- Borrow less money
- Lower your monthly payment
- Reduce or avoid private mortgage insurance
- Qualify for better pricing
You do not always need 20% down to buy a home. Conventional, FHA, VA, and USDA programs may offer different down payment requirements for qualified borrowers. Our residential loan programs include several options for different financial situations.
3. Debt-to-income ratio and income stability
Your debt-to-income ratio, or DTI, compares your monthly debt obligations with your gross monthly income. A lower DTI generally gives lenders more confidence that you can manage a new mortgage payment.
Lenders may review:
- Salary or hourly income
- Self-employed or 1099 income
- Bonuses and commissions
- Rental income
- Student loans, auto loans, and credit cards
- Existing mortgages or equity lines
If your income is not traditional, that does not automatically mean you cannot qualify. Coastal Funding works with self-employed borrowers, 1099 professionals, and borrowers who may need alternative income documentation.
How Can You Find the Best Mortgage Rates?
Compare multiple lenders and loan programs
Rates can vary between lenders, even when two lenders review the same borrower. That is why shopping around matters.
Start by comparing similar loan offers from several lenders. Make sure the comparisons use the same:
- Loan amount
- Loan term
- Loan type
- Down payment
- Rate-lock period
- Discount point structure
A mortgage broker can make this process easier by comparing options through an extensive lender network instead of requiring you to contact every lender individually.
Request and compare Loan Estimates
The Consumer Financial Protection Bureau’s Loan Estimate guide recommends requesting multiple Loan Estimates so you can compare offers.
Review these sections carefully:
- Interest rate and APR
- Origination charges
- Points
- Lender credits
- Estimated cash to close
- Monthly principal and interest
- Mortgage insurance
- Total interest percentage
The interest rate tells you the cost of borrowing. The APR gives you a broader view by including certain loan costs. Both are important.
Understand points and lender credits
Discount points are upfront fees paid to reduce your interest rate. Lender credits reduce some closing costs, but they may come with a higher rate.
Ask your loan professional to show you both options:
- A lower rate with higher upfront costs
- A higher rate with lower upfront costs
Then consider how long you expect to keep the mortgage. If you may sell or refinance in a few years, paying substantial points may not provide enough time to recover the expense.
Lock your rate at the right time
Mortgage rates can move between application and closing. A rate lock protects your rate for a specific period, provided you close within the lock window and meet the applicable conditions.
Ask:
- How long is the rate lock?
- Is there a fee?
- What happens if closing is delayed?
- Is a float-down option available?
- What changes could invalidate the lock?
Your loan officer can help you weigh market movement against the timing of your purchase or refinance.
What Loan Type May Offer the Best Rate for You?
The best rate depends partly on the program that fits your situation.
- Conventional loans: Flexible fixed-rate and adjustable-rate options for qualified borrowers.
- FHA loans: Lower down payment options and more flexible credit guidelines for eligible borrowers.
- VA loans: Competitive financing for eligible service members, veterans, and surviving spouses.
- USDA loans: Potential zero-down financing for eligible homes and borrowers.
- Jumbo loans: Financing for loan amounts above standard conforming limits.
- Alternative income programs: Options for some self-employed, 1099, and nontraditional borrowers.
A government-backed loan may offer a competitive interest rate, but you should compare the complete cost, including mortgage insurance or program-specific fees.
Are You Refinancing a Home Loan?
When refinancing a home loan, the lowest available rate is not automatically the right answer. Your goals matter.
You may consider refinancing to:
- Lower your monthly payment
- Reduce your interest rate
- Change from an adjustable rate to a fixed rate
- Shorten your loan term
- Access home equity
- Consolidate certain high-interest debts
Before refinancing, compare your new payment and closing costs with your expected savings. A break-even calculation can show how long it may take to recover the cost of refinancing.
Coastal Funding offers refinancing options for homeowners exploring rate-and-term refinances, cash-out refinances, and other residential financing goals.
What About HELOC Rates?
A home equity line of credit, or HELOC, lets you access a revolving line of credit secured by your home’s equity. You generally pay interest only on the amount you draw during the draw period.
When comparing HELOC rates, look beyond the advertised rate. Ask about:
- Whether the rate is fixed or variable
- The index and margin
- The draw period
- The repayment period
- Annual or early-termination fees
- Minimum borrowing requirements
- How payments may change over time
A HELOC may be useful for home improvements, debt consolidation, major purchases, or other planned expenses. However, your home secures the line of credit, so it is important to understand the risks and payment obligations.
Learn more about HELOC options through Coastal Funding.
A Simple Checklist for Finding Competitive Mortgage Rates
Before you apply or accept an offer:
- Check your credit and review your monthly debts.
- Estimate your down payment and available cash reserves.
- Decide whether a 15-year or 30-year term fits your budget.
- Compare conventional, FHA, VA, USDA, or other eligible programs.
- Request Loan Estimates from multiple lenders.
- Compare APR, fees, points, credits, and cash to close.
- Ask about the rate-lock period.
- Confirm the payment fits comfortably within your budget.
- Review the long-term cost, not just the advertised rate.
Our mortgage calculators can help you estimate payments, qualifying income, and debt-to-income ratio. These tools are for planning purposes, but they can make your conversation with a loan professional more productive.
Ready to Compare Your Options?
The best mortgage rate is the one that fits your credit profile, financial goals, property, and long-term plans. We take the time to understand your situation, compare lender options, and keep you informed throughout the process.
On applicable programs, Coastal Funding promotes no broker fees, no points, no origination fees, and no underwriting fees. Program terms and qualifications vary, so we will explain the details before you move forward.
Contact Coastal Funding or apply online to discuss your options. It’s that simple.
Mortgage rates, fees, and program guidelines change frequently. Rates shown by third-party sources are averages and are not a commitment to lend or a guarantee of specific terms. Actual qualification depends on credit, income, assets, property, loan amount, occupancy, and other factors. Equal Housing Lender. NMLS: 103035.
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