Rates lower again: Mortgage lenders with the best rates this week, Dec. 1, 2025

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The top three mortgage lenders with the best rates remain unchanged from last week: Citi Mortgage, Navy Federal Credit Union, and PenFed Credit Union, according to a survey conducted by Yahoo Finance. Lenders were ranked by annual percentage rate (APR), which includes lender fees.

• MORE: See our top picks for mortgage lenders for first-time home buyers.

The mortgage lenders with the best rates: December 1, 2025

Here are the results of our survey for the lowest mortgage rates on 30-year, fixed-rate conventional loans this week. The following numbers are each lender’s annual percentage rate (APR).

1. Citi Mortgage: 5.629%

2. Navy Federal Credit Union: 5.685%

3. PenFed Credit Union: 5.915%

4. Chase Home Loans: 5.954%

5. Better: 5.981%

6. Truist: 6.085%

7. Rate: 6.091%

8. U.S. Bank: 6.159%

9. Fifth Third Bank: 6.27%

10. Bank of America: 6.390%

Credit unions and big banks dominate our low-rate lender survey

Mortgage rates moved lower again this week among most of the leading mortgage lenders evaluated by Yahoo Finance.

The top five lenders with the lowest rates remain solid. Consistently ranking among the lenders with the best rates are two of the largest banks (Citi and Chase), two of the largest credit unions (Navy Federal and PenFed), and a highly rated online lender (Better).

While PenFed does not restrict membership to those with a military connection — anyone can join — Navy Federal membership is available only to military personnel, veterans, and their families.

Of the 16 lenders surveyed on December 1, Wells Fargo, PNC, Flagstar Bank, Rocket Mortgage, and Third Federal did not make the top 10, based on annual percentage rates. Citizens Bank has displayed rates in the past, but its website was not showing rates at the time of our survey.

An APR with a 1.17 percentage point difference separated the top lender, Citi Mortgage, from Third Federal at the bottom of our list, underscoring the importance of shopping for mortgage rates with multiple lenders.

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Important note: Sample mortgage rates use generic data

These are all sample mortgage rates found on lender websites and are based on generic assumptions. Lenders advertise 30-year mortgage rates based on varying credit scores, down payments, and other credit qualifications. Even where you live affects your mortgage rate.

Your rate will be based on your particular credit profile.

If a mortgage lender required additional borrower information to provide a sample rate, we supplied a median home value and credit score, with a 20% down payment based on a home located in the Midwest.

• See the average mortgage rate in your state.

How to shop for mortgage rates

The key to getting the lowest mortgage rate is shopping around, which could save borrowers up to $44,000 over the life of a 30-year loan, according to analysis by Realtor.com. So, that's what we're doing for you: Scouring national lender rates for the best offers we can find.

Focus on the APR

We're also looking for details that you will want to consider. Often, borrowers focus on the offered interest rate, as that's what lenders typically highlight. However, the mortgage annual percentage rate, or APR, is the most important number.

APR includes both the interest rate and lender fees (e.g., the mortgage origination fee), so it is the most accurate measure of your annual borrowing costs.

Discount points are an option

Lenders often include mortgage discount points to lower their offered interest rate. That's where things can get confusing.

First off, discount points are prepaid interest — an up-front fee paid at closing that reduces your interest rate. Although lenders often include discount points in their advertised rates online, buying points is optional.

Each point represents 1% of your loan amount and generally lowers your interest rate by about 0.25%. For example, one point on a $400,000 mortgage would cost $4,000 and reduce a 6.25% home loan to 6%.

Just remember, no matter what the lender puts in an advertised rate, or in a loan offer, when you get a Loan Estimate and you see discount points under the lender fees section, you can say “no” and have them removed. But your rate will be higher.

• Learn about how mortgage rates are determined.

Simplify your mortgage rate shopping process

That's a lot of moving parts, we know.

If possible, when shopping with three or more lenders, have each of them quote a mortgage rate with zero discount points. Then, focus on the APR for an accurate side-by-side comparison of rates and fees.

How we determined the mortgage lenders with the lowest rates

See the table below to understand the Yahoo Finance methodology for determining which mortgage lenders have the best rates this week. Remember, we are sorting by APR, which includes both the interest rates and mortgage lender fees, including points.

Laura Grace Tarpley edited this article.

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