How to compare lenders

We do not rank lenders and we do not take payment to feature anyone. This is simply the method that makes quotes comparable.

1. Start from the benchmark

Check the current national average before you talk to anyone. Walking into a conversation knowing the benchmark changes it completely - you can tell immediately whether a quote is in the normal range.

2. Collect at least three written quotes

Research by the Consumer Financial Protection Bureau has consistently found that many borrowers take the first offer they receive. Rate spreads between lenders on the same borrower, on the same day, are real and worth money over the life of a loan.

3. Compare APR, not the headline rate

APR includes origination fees and points, which is exactly why it is the number to compare. A lower rate with two points paid up front can easily cost more than a higher rate with none, depending how long you keep the loan.

4. For mortgages, read the Loan Estimate

Federal rules require a standardised three-page Loan Estimate within three business days of an application. The format is identical across lenders precisely so it can be compared line by line. Page two, the closing-cost detail, is where quotes actually differ.

5. Questions worth asking

What is the APR, and how many discount points are built into this rate?
What are the total origination and lender fees?
Is there a prepayment penalty?
How long is the rate locked, and what does an extension cost?
Is the rate fixed for the full term, or does it adjust?

What we will never do: take payment for placement, publish paid rankings, collect your personal details, or pass your information to lenders. Approach licensed lenders directly - your data stays yours.