With 30-year fixed rates still hovering near 6 percent, a 0.25-point difference in APR saves about $17,000 in interest on a $350 k loan over 30 years. Add closing-cost variation, and the “cheapest headline rate” is often not the cheapest loan.
Lender-by-Lender Numbers (May 2025)
| Rank | Lender | 30-Yr APR | Closing Costs* | Notes |
|---|---|---|---|---|
| 1 | Navy Federal Credit Union | 6.05 % | 0.85 % | No PMI to 95 % LTV for members. Source |
| 2 | PenFed Credit Union | 6.10 % | 0.90 % | $1 k lender credit on loans $250 k+. Source |
| 3 | Bank of America | 6.22 % | 1.25 % | $600 relationship credit. Source |
| 4 | Chase | 6.25 % | 1.30 % | 0.25 pt rate discount for Sapphire clients. Source |
| 5 | Wells Fargo | 6.28 % | 1.35 % | $500 closing-cost credit for existing customers. Source |
| 6 | SoFi | 6.29 % | 1.10 % | Underwrites to 50 % DTI; rapid digital process. Source |
| 7 | U.S. Bank | 6.30 % | 1.25 % | Competitive jumbo pricing; branch network. Source |
| 8 | Rocket Mortgage | 6.35 % | 1.50 % | 0.75 pt lender credit if you lock within 24 hrs. Source |
| 9 | loanDepot | 6.37 % | 1.55 % | Relatively high origination fee. Source |
| 10 | Better.com | 6.32 % | 1.00 % | No lender fees; lower total cost despite rate. Source |
APRs Side-by-Side
Closing-Cost Spread
Key Take-aways
- Credit unions dominate headline APRs thanks to member-owned, lower-margin models.
- Non-banks advertise aggressively (Rocket, loanDepot) but recoup margin via higher fees.
- Big banks reward loyalty: relationship credits can shave 0.125–0.250 pts—worth factoring into your calculator.
How to Choose the Right Offer
| Factor | Why It Matters | Quick Rule-of-Thumb |
|---|---|---|
| APR vs Closing Costs | A 0.10 pt lower APR ≈ $7/mo on $350 k. If fees exceed 0.25 pt of loan, higher APR may be cheaper short-term. | Use our mortgage calculator; set loan term to 5 years if you expect to move. |
| Rate-Lock Policy | Extending beyond 45 days can add 0.125 pt. | Negotiate a free 15-day extension if builder delays. |
| Pre-payment Penalty | Rare on conforming loans, common on portfolio jumbos. | Avoid any penalty > 1 % of principal. |
| Points Strategy | Buying 1 pt today costs ~2 % of loan; breakeven ≈ 6 yrs. | Buy points only if staying > 7 yrs. |
The true cheapest mortgage in 2025 blends rate, fees, and perks. Credit unions like Navy Federal top the list for APR, while fintechs like Better.com win on low fees. Big-bank relationship discounts can tilt the decision if you already keep assets there.
Next step:
→ Open our mortgage calculator, plug in each lender’s APR and fees from the table above, and see which option costs least over your expected home-ownership horizon.
