The interest rate gets most of the attention, but it’s only one piece of what a mortgage costs. The lender you choose, the fees you agree to, and how you manage the loan after closing all shape the total, and you have a say in every one of them.
Each one is a chance to save, for buyers and current homeowners alike. Here’s where to look.
Shop Around. Your Credit Score Can Take It.
Getting quotes from more than one lender is the single most effective way to save on a mortgage. Freddie Mac research found that in late 2022, when rates were climbing fast, borrowers who got two quotes could have saved up to $600 a year, and those who got four or more could have saved more than $1,200 a year. The gap between lenders’ rates tends to widen when rates are high, so every extra quote you collect right now is worth more than usual.
If concern about credit pulls has kept you at one quote, you can relax. The scoring models were built with rate shopping in mind.
How the rate shopping window works. When several mortgage lenders pull your credit within a short window, scoring models count them all as a single inquiry. Older FICO models and VantageScore use a 14-day window; newer FICO models use 45 days. FICO also ignores mortgage inquiries from the 30 days before a score is calculated, so the pulls you collect while shopping stay out of the score your next lender sees.
The safe play. You won’t know which model each lender uses, so keep your quote requests inside two weeks. Do that and multiple quotes can count the same as one.
For a clean comparison, request quotes on the same day when you can, since rates move daily, and give every lender the same loan type, term, and down payment. If you’re early in the process, getting pre-approved first makes every quote more accurate, so you’re comparing real numbers instead of ballpark ones.
Consider a Credit Union-owned Lender
Full disclosure: Mortgage Center is owned by Credit Unions. With that on the table, here’s why one belongs on your list.
Credit Unions are not-for-profit cooperatives owned by their members. Instead of sending profits to shareholders, they return earnings to members in the form of lower rates and fewer fees. The NCUA publishes quarterly comparisons of national average rates at banks and Credit Unions, and Credit Unions come out ahead on most of the loan products tracked.
A national average is a helpful starting point, and your own quote is what counts. Put at least one Credit Union or Credit Union-owned lender on your list and let the Loan Estimates settle it.
Know How to Read a Loan Estimate
Within three business days of a completed application, every lender must send you a Loan Estimate, a three-page form that lays out your rate, projected payments, and closing costs in the same format no matter which lender it comes from. That standard layout works in your favor, since you can set two quotes side by side and compare them line by line. Page 2 is where the differences usually show up:
- Section A: Origination Charges. These are the lender’s own fees, and they vary widely from one lender to the next. If one quote’s Section A runs higher than the rest, ask about it. Lenders set these fees themselves, so ask what each fee covers and compare the total cost – not just the advertised rate.
- Section C: Services You Can Shop For. Your lender will give you a list of providers for title work and the other third-party services in this section, and you’re free to use anyone you like. A little shopping here can save you hundreds.
- Lender credits. A credit toward closing costs usually comes with a slightly higher rate. That trade pays off if you don’t plan to keep the loan long, and costs you if you do, so make sure it’s one you asked for.
If you’d like a guided tour, the CFPB’s interactive Loan Estimate explainer walks you through every field on all three pages.
- Date Issued
- 9/30/2026
- Applicants
- Jordan Sample
123 Example Ave., Anytown, MI 48000 - Property
- 456 Sample St., Anytown, MI 48000
- Sale Price
- $300,000
Save this Loan Estimate to compare with your Closing Disclosure.
- Loan Term
- 30 years
- Purpose
- Purchase
- Product
- Fixed Rate
- Loan Type
- ☑ Conventional ☐ FHA ☐ VA ☐ ____
- Loan ID #
- 000000000
- Rate Lock
- ☐ YES ☑ NO
| Loan Amount | $270,000 | NO | |
| Interest Rate | 6.75% | NO | |
| Monthly Principal & Interest See Projected Payments below for your Estimated Total Monthly Payment |
$1,751.21 | NO | |
| Does the loan have these features? | |||
| Prepayment Penalty | NO | ||
| Balloon Payment | NO | ||
| Payment Calculation | Years 1–9 | Years 10–30 |
|---|---|---|
| Principal & Interest | $1,751.21 | $1,751.21 |
| Mortgage Insurance | + 95 | + — |
| Estimated Escrow Amount can increase over time |
+ 525 | + 525 |
| Estimated Total Monthly Payment | $2,371 | $2,276 |
| Estimated Taxes, Insurance & Assessments Amount can increase over time |
$525 a month |
This estimate includes ☑ Property Taxes — In escrow? YES ☑ Homeowner’s Insurance — In escrow? YES ☐ Other: ____ See Section G on page 2 for escrowed property costs. |
| Estimated Closing Costs | $9,301 | Includes $5,677 in Loan Costs + $4,124 in Other Costs – $500 in Lender Credits. See page 2 for details. |
| Estimated Cash to Close | $34,301 | Includes Closing Costs. See Calculating Cash to Close on page 2 for details. |
Visit www.consumerfinance.gov/mortgage-estimate for general information and tools.
Compare page 1 across lenders
Rate, monthly payment, and closing costs all sit on this page, so it’s the fastest side-by-side view. Request your quotes within about two weeks so the credit checks count as one inquiry. Check the Rate Lock box too. An unlocked rate can still move before closing.
| A. Origination Charges 2 | $2,795 |
| .5 % of Loan Amount (Points) | $1,350 |
| Application Fee | $450 |
| Underwriting Fee | $995 |
| B. Services You Cannot Shop For 3 | $682 |
| Appraisal Fee | $550 |
| Credit Report Fee | $45 |
| Flood Determination Fee | $12 |
| Tax Service Fee | $75 |
| C. Services You Can Shop For 4 | $2,200 |
| Title – Lender’s Title Policy | $1,050 |
| Title – Settlement Agent Fee | $650 |
| Title – Insurance Binder | $150 |
| Survey Fee | $350 |
| D. TOTAL LOAN COSTS (A + B + C) | $5,677 |
| E. Taxes and Other Government Fees | $150 |
| Recording Fees and Other Taxes | $150 |
| Transfer Taxes | $0 |
| F. Prepaids 5 | $2,549 |
| Homeowner’s Insurance Premium (12 mo.) | $1,800 |
| Mortgage Insurance Premium (0 mo.) | $0 |
| Prepaid Interest ($49.93/day for 15 days @ 6.75%) | $749 |
| Property Taxes (0 mo.) | $0 |
| G. Initial Escrow Payment at Closing | $1,425 |
| Homeowner’s Insurance $150.00/mo. for 2 mo. | $300 |
| Mortgage Insurance per mo. for 0 mo. | $0 |
| Property Taxes $375.00/mo. for 3 mo. | $1,125 |
| H. Other | $0 |
| I. TOTAL OTHER COSTS (E + F + G + H) | $4,124 |
| J. TOTAL CLOSING COSTS | $9,301 |
| D + I | $9,801 |
| Lender Credits 6 | –$500 |
| Total Closing Costs (J) | $9,301 |
| Closing Costs Financed (Paid from your Loan Amount) | $0 |
| Down Payment/Funds from Borrower | $30,000 |
| Deposit | –$5,000 |
| Funds for Borrower | $0 |
| Seller Credits | $0 |
| Adjustments and Other Credits | $0 |
| Estimated Cash to Close | $34,301 |
Section A is the lender’s own pricing
Application, underwriting, and origination fees are set by each lender, so this is where offers differ most. Points show up here too. Paying them only makes sense if you’ll keep the loan past the break-even point.
Section B should look similar everywhere
The lender picks these providers. If one quote’s appraisal or credit report fee is far higher than the others, ask why.
Section C is yours to shop
You can choose your own title company and settlement agent. The lender has to give you a list of providers, and you’re free to look beyond it.
Prepaids reflect your insurance quote
The homeowner’s insurance premium here comes from your policy, not the lender. Shopping that policy lowers both your closing costs and your monthly escrow.
Lender credits usually come with a higher rate
Credits lower what you pay at closing, often in exchange for a slightly higher rate. Compare the credit to what the higher rate costs over the years you expect to keep the loan.
| LENDER Sample Lender NMLS/__ LICENSE ID 000000 LOAN OFFICER Alex Example NMLS ID 000000 |
MORTGAGE BROKER — NMLS/__ LICENSE ID — LOAN OFFICER — NMLS ID — |
| In 5 Years | $116,450 | Total you will have paid in principal, interest, mortgage insurance, and loan costs. |
| $16,535 | Principal you will have paid off. | |
| Annual Percentage Rate (APR) | 7.181% | Your costs over the loan term expressed as a rate. This is not your interest rate. |
| Total Interest Percentage (TIP) | 133.497% | The total amount of interest that you will pay over the loan term as a percentage of your loan amount. |
| Appraisal | We may order an appraisal to determine the property’s value and charge you for this appraisal. We will promptly give you a copy of any appraisal, even if your loan does not close. You can pay for an additional appraisal for your own use at your own cost. |
| Assumption | If you sell or transfer this property to another person, we ☐ will allow, under certain conditions, this person to assume this loan on the original terms. ☑ will not allow assumption of this loan on the original terms. |
| Homeowner’s Insurance | This loan requires homeowner’s insurance on the property, which you may obtain from a company of your choice that we find acceptable. |
| Late Payment | If your payment is more than 15 days late, we will charge a late fee of 5% of the monthly principal and interest payment. |
| Refinance | Refinancing this loan will depend on your future financial situation, the property value, and market conditions. You may not be able to refinance this loan. |
| Servicing | We intend ☐ to service your loan. ☑ to transfer servicing of your loan. |
By signing, you are only confirming that you have received this form. You do not have to accept this loan because you have signed or received this form.
Use Comparisons for the apples-to-apples check
The APR folds fees and mortgage insurance into one figure, and “In 5 Years” shows what you’d actually spend if you sell or refinance around then. A quote with a lower rate but heavy fees often loses here.
Illustrative sample only. The borrower, lender, property, and all figures on this form are fictional and were created to show how a Loan Estimate is organized. This is not an offer of credit, a rate quote, or a commitment to lend. Your own Loan Estimate will reflect your credit, property, loan program, and market conditions on the day it’s issued. For the official walkthrough, see the CFPB’s Loan Estimate explainer.
Mortgage Center · NMLS #282701 · Equal Housing Lender
Do the Math on Points and Buydowns
When rates are high, lenders often offer ways to lower yours at closing. Discount points are prepaid interest: you pay more at closing in exchange for a lower rate for the life of the loan. Temporary buydowns lower your rate for the first year or two, and a seller or builder will sometimes cover the cost for you.
Whether either one is worth it comes down to your break-even point, the number of months you’d need to keep the loan before the upfront cost pays for itself. Keep the loan past that point and the lower rate keeps saving you money every month. Compare the upfront cost with your expected savings, and how long you plan to keep the loan, with your loan officer. A good loan officer will run that math with you.
Already Have a Mortgage? You Can Still Save.
You don’t need a refinance to lower what you pay. Every one of these works with the rate you already have.
- Pay extra toward principal. Even a small extra payment shortens your loan and trims the total interest you pay. Just confirm your servicer applies it to principal rather than to next month’s payment, so every extra dollar goes to work for you.
- Drop PMI when you qualify. On most conventional loans, you can request cancellation of private mortgage insurance once you reach 20 percent equity in your home.* That takes a chunk off your monthly payment, no refinance required.
- Ask about recasting. Apply a lump sum to principal and your servicer may re-amortize the loan, which lowers your monthly payment while keeping your existing rate, usually for a nominal fee. Contact your servicer for more information.
- Shop your escrow line items. Re-shopping your homeowners insurance every year, and appealing a property tax assessment that jumped, can lower the escrow side of your payment without touching your loan at all.
- Keep refinancing on the radar. Know the rate that would make a refi worth it for you, so you’re ready to act when the market gets close.
The Bottom Line
When rates are high, every fraction of a percent is worth more, and so is every smart move you make. Shopping carefully, reading your Loan Estimate closely, and choosing a lender that answers to its members can add up to real money over the life of your loan.
If you’d like a second set of eyes on a quote you’ve received, or you’re ready to start shopping, Mortgage Center’s team is happy to walk through the numbers with you. Bring your Loan Estimate.
Frequently Asked Questions
Does shopping around for a mortgage hurt my credit score?
Scoring models treat multiple mortgage inquiries made within the rate shopping window, 14 to 45 days depending on the model, as a single inquiry. Keep your quote requests inside two weeks and the impact is usually a few points at most, a small price for what shopping can save you.
How many mortgage quotes should I get?
At least three, and five if you can manage it. Each additional quote gives you more to compare and more leverage. Freddie Mac’s research found that borrowers who got as many as five quotes in the second half of 2022 could have saved more than $6,000 over the life of the loan, assuming they kept it at least five years.
What should I compare besides the interest rate?
The APR, Section A origination charges, Total Loan Costs on page 2, and estimated cash to close. Two loans with the same rate can differ by thousands in fees, and comparing these lines is how you catch it.
Can I negotiate the fees on my Loan Estimate?
Sometimes. Each lender sets its own origination fees, and competing quotes give you leverage to ask for a better number. For Section C services, ask which services you can shop for and what requirements apply.
*PMI cancellation is subject to loan program and investor requirements, including payment history, and may require confirmation of your property’s value.
