Same house. Three quotes. Which loan wins?

Make the offers comparable

Ask each lender for a Loan Estimate for the same property price, down payment, loan amount, loan program, and approximate closing date. A quote taken days later can reflect a changed market, so note when each rate was offered and whether it is locked. If one quote includes discount points and another does not, ask for a zero-point version of each. That removes a common source of false bargains.

Read past the interest rate

On page one, compare principal and interest, mortgage insurance, and the estimated total payment. On page two, focus on origination charges, services you cannot shop for, and lender credits. The CFPB warns that a smaller tax or insurance estimate does not make a lender cheaper: those assumptions should be questioned, not counted as a savings. Compare the actual amount due at closing as well as the monthly number.

Give time a price tag

A borrower planning to sell or refinance soon may value lower upfront cost differently from a borrower keeping the loan for years. The Loan Estimate includes an “In 5 years” comparison; subtract the principal paid from the total paid to see five-year interest and fees. It is a comparison tool, not a prediction of when you will move. Ask the loan officer to explain a different likely holding period and any prepayment terms.

A useful next move

Send each lender the same comparison questions: What is the rate without points? Which charges can change? What would a rate lock cost or require? Can this lender meet the contract timeline? The cheapest quote is less useful if its conditions cannot be satisfied before closing. Put answers in writing, then choose the offer that balances total cost, cash reserves, and execution risk.

Quick answer

Which number matters most: rate or APR?

Neither alone. APR includes certain borrowing costs but may not reflect how long you keep the loan. Compare the full Loan Estimates on matching terms, including five-year cost and cash to close.