See which credit unions and banks have low mortgage rates
I’m looking for a primary, single-family home in for , and credit score.
Insights
Negotiate everything—rates, fees, and terms are not set in stone.
George Robinson TrueRate Data ScientistLenders with low rates
TrueRate analyzed the rates lenders actually gave to buyers for the last three years and found only a few lenders likely to get you a good deal.
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Insights
Negotiate everything—rates, fees, and terms are not set in stone.
George Robinson TrueRate Data ScientistLenders likely to have high rates
We don’t accept advertising, so you can get the real lender story. TrueRate looked at 60 lenders and found that these lenders are likely to offer you a high rate.
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Insights
Whether a lender has high margins or is simply inefficient and passing their costs on to you, the result is the same—you’ll likely end up paying more for your home. Our data shows that if you choose these lenders you will likely regret it.
George Robinson TrueRate Data ScientistLenders with average rates
You deserve better than what these lenders historically provide.
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Don’t let lenders pull a fast one on you
Learn how really low rates often come with hidden fees. Drag the slider to see how rates and fees are connected.
Insights
Insights by James McTernan Tomo Mortgage Loan Advisor - NMLS #337556TrueRate report
Buying a home shouldn’t feel impossible—see what’s driving buyer stress in 2025.
What is TrueRate by Tomo Mortgage?
TrueRate is a tool for homebuyers, created by Tomo Mortgage. It uses AI and analytical models to show you what a fair mortgage rate really looks like—your “true rate”—based on your unique financial situation and real market conditions. It strips out all the bait-and-switch pricing you see all over the internet, such as rates advertised with big point fees hiding in the fine print.
Instead of giving you a one-size-fits-all estimate, TrueRate calculates what rate you should be looking for that day, using the same kinds of data that lenders themselves rely on to provide their own rate information. We’re just making it all public for the first time. You’ll be able to see whether an interest rate offered by a bank, credit union, or mortgage company is low, average, or too high—before you agree to anything.
We believe in transparency. Here’s how we crunched the numbers.
How do mortgage rates at credit unions and banks compare?
When it comes to getting a mortgage, many homebuyers start by comparing offers—typically, based on the interest rate—from both banks and credit unions. But advertised rates don’t always tell the full story.
To help figure out which mortgage companies offer low interest rates, we created a model: TrueRate. The model is based on roughly one million real home loans (and we’re adding more daily), from over 1,000 regional and national banks, local credit unions, and independent and online mortgage companies. With all this data, we’re able to see which lender offers low rates most often, and how that compares to the industry average.
TrueRate shows that a number of credit unions offer lower interest rates, on average, compared to large national lenders and big banks. But this isn’t every credit union. And the analysis is limited to 30-year fixed-rate primary mortgages (i.e., the most common loan type) at this time.
Here are some of the key findings in our analysis:
- Some local credit unions offer mortgage interest rates in the top 30th percentile (i.e., rates lower than 70% of all other lenders) more often than large national banks.
- Larger lenders, overall, tend to have higher mortgage origination fees (i.e., fees added to the cost of the loan), than smaller lenders, as our analysis of lender fees reveals.
- Independent mortgage companies can fall in both extremes—exceptionally high and exceptionally low rates and fees. Tomo Mortgage is one of the few independent mortgage companies that offers similar low rate ranges as local credit unions, but also has the advantage of $0 lender fees.
Unfortunately, there’s no single definitive answer to “who has the best rates,” in every situation for everyone, or even on any given day. Interest rates often vary widely by lender, loan type, and your personal financial profile. Not every credit union is set up to offer the most competitive rates all the time. It’s important to reach out to multiple lenders—whether that’s a big bank, a credit union, or a mortgage company like Tomo Mortgage—to see who has the lowest rates and fees for you.
Frequently asked questions
Here’s a quick look at how average mortgage rates have moved over the past several years, across all mortgage lenders (banks, credit unions, and independent mortgage companies).
Year / Avg 30-year fixed rate
| Year | Avg 30-year fixed rate | What drove rates? | |
|---|---|---|---|
| 2018 / ~4.54% | 2018 | ~4.54% | Fed rate hikes increased borrowing costs across banks and credit unions. |
| 2019 / ~3.94% | 2019 | ~3.94% | Economic slowdown led to Fed rate cuts; credit unions began lowering rates. |
| 2020 / ~3.11% | 2020 | ~3.11% | Pandemic uncertainty triggered record-low mortgage rates across the board. |
| 2021 / ~2.96% | 2021 | ~2.96% | Credit unions and banks hit historic lows as demand soared. |
| 2022 / ~5.34% | 2022 | ~5.34% | Inflation surged; the Fed responded with aggressive hikes, pushing bank rates higher. |
| 2023 / ~6.80% | 2023 | ~6.80% | Volatility and inflation kept rates elevated; credit unions offered some relief. |
| 2024 / ~6.72% | 2024 | ~6.72% | Rates stabilized slightly; smaller lenders and credit unions offered competitive pricing. |
| 2025 / ~6.35% | 2025 | ~6.35% | So far this year, mortgage rates at banks and credit unions range from 6.35% to 7.04%. |
To more accurately compare rates apples-to-apples, Tomo Mortgage created TrueRate to model the “true rate” different banks and credit unions, as well as other mortgage companies, are charging real home buyers. It uses actual rates from real borrowers to give you a transparent view.
We recommend talking to multiple lenders listed on TrueRate, and requesting an official loan estimate from each of them so that you have all the information you need to make an informed decision.
Here’s what to watch for when shopping rates:
- Look at the APR, not just the interest rate
- Ask if the quoted rate includes discount points or origination fees
- Compare quotes from at least 3 mortgage lenders
Note that many homebuyers start by looking at online quotes and offers from banks and credit unions, such as the information listed on their website. While this can be a helpful way to explore some of your options, these advertised rates don’t always tell the full story.
Now, whether it’s a credit union or a bank, what you’re quoted depends on:
- Your credit score
- Your loan-to-value ratio
- Discount points or fees (which many lenders bake into low “advertised” rates)
- The lender’s business model
Note that some banks rely on “bait and switch” tactics when advertising rates online. They might show you interest rates online that only apply to an ideal buyer with perfect credit, for example. Or, more often, they only show rates with really high upfront fees. Looking at the APR, and making sure that the APR and interest rate are the same (or nearly the same), is a good way to assess the real price of the mortgage.