by Buying a home is one of the most significant financial decisions you’ll ever make. With interest rates constantly changing, finding a mortgage loan with a low Annual Percentage Rate (APR) in 2025 can save you thousands over the life of your loan. Whether you’re a first-time homebuyer or looking to refinance, understanding which lenders offer the best mortgage loans is crucial.
In this article, we’ve carefully researched and compiled a list of the 10 best mortgage loans with low APR in 2025. These lenders offer competitive rates, flexible terms, and features designed to suit different types of borrowers. Let’s dive in.
What Is APR and Why It Matters in Mortgage Loans
APR stands for Annual Percentage Rate, and it reflects the total cost of borrowing, including the interest rate and other associated fees (like closing costs and origination fees). A lower APR means you’ll pay less over the life of your loan.
While the interest rate shows the cost of borrowing the principal loan amount, APR gives a fuller picture of your total financial obligation. That’s why comparing APRs when shopping for a mortgage is more meaningful than just looking at interest rates.
Factors to Consider When Choosing a Mortgage Loan
Before we get to the top picks, here are some key factors you should evaluate:
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Interest Rate & APR: Aim for the lowest possible APR.
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Loan Term: 15, 20, or 30-year loans? Shorter terms often have lower APRs but higher monthly payments.
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Down Payment Requirements: Some loans allow as little as 3% down.
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Credit Score Requirements: Higher scores usually get better rates.
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Closing Costs and Fees: Look out for hidden charges that can drive up the APR.
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Loan Types: Fixed-rate, adjustable-rate (ARM), FHA, VA, USDA, or Jumbo loans.
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Preapproval and Customer Support: A streamlined preapproval process and good customer service can make a huge difference.
The 10 Best Mortgage Loans with Low APR in 2025
1. Rocket Mortgage by Quicken Loans
APR Range: Starting at 6.12%
Best For: Online convenience and fast approval
Rocket Mortgage remains a top contender in 2025 due to its seamless digital platform and fast loan processing. With competitive rates and a wide range of loan products, it’s great for tech-savvy buyers looking for a streamlined experience.
Pros:
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Fast online application and approval
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Real-time rate adjustments
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Excellent customer support
Cons:
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Not ideal for complex loan scenarios
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May not offer the lowest APRs for all buyers
2. Better Mortgage
APR Range: Starting at 6.10%
Best For: No lender fees
Better Mortgage is known for eliminating origination, application, and underwriting fees, which helps reduce your APR. This lender is especially suitable for borrowers who value transparency and cost savings.
Pros:
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No lender fees
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Fast preapproval process
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Fully online
Cons:
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Limited to certain states
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No VA or USDA loans
3. Chase Home Lending
APR Range: Starting at 6.20%
Best For: Existing Chase customers
Chase offers rate discounts for customers with a Chase bank account, credit card, or investment account. Their robust customer service and wide network of physical branches make them ideal for borrowers who want in-person support.
Pros:
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Relationship rate discounts
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Wide range of loan options
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In-person and online service
Cons:
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Slower processing times than online-only lenders
4. Bank of America Mortgage
APR Range: Starting at 6.15%
Best For: Low-income borrowers and first-time buyers
Bank of America offers special programs like America’s Home Grant®, which provides up to $17,500 in assistance. If you’re looking for affordability and access to grants, this could be your go-to lender.
Pros:
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Competitive rates for qualifying buyers
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Down payment and closing cost assistance
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Good mobile and online platform
Cons:
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Strict underwriting criteria for some loans
5. Wells Fargo Mortgage
APR Range: Starting at 6.25%
Best For: Jumbo loans and refinancing
Wells Fargo offers tailored jumbo loan solutions and a variety of refinancing options. If you’re purchasing a high-value property or need to refinance, Wells Fargo provides solid options with competitive rates.
Pros:
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Strong jumbo loan options
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Reputable institution
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Good mobile app
Cons:
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Mixed reviews on customer service
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Limited government-backed loans
6. loanDepot
APR Range: Starting at 6.14%
Best For: Refinancing
loanDepot has established itself as a leader in streamlined mortgage refinancing, with a no-steering policy that ensures you get the best deal, not just the one that benefits the lender.
Pros:
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Efficient refinancing process
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Lifetime guarantee for repeat refinances
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Competitive rates
Cons:
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Upfront fees can be higher
7. SoFi Mortgage
APR Range: Starting at 6.08%
Best For: High credit score borrowers
SoFi appeals to financially strong borrowers with high credit scores. With member-only perks and discounts, SoFi can offer lower APRs, especially to those with strong financial profiles.
Pros:
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Low APR for top-tier borrowers
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No hidden fees
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Member benefits
Cons:
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Not suitable for lower credit score borrowers
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Limited loan types (no FHA, VA)
8. USAA
APR Range: Starting at 6.18%
Best For: Military families
USAA provides exclusive mortgage solutions for active-duty military, veterans, and their families. With great VA loan options and low rates, it’s one of the most trusted names in the industry for service members.
Pros:
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Great VA loan rates
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Low down payment options
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Excellent customer service
Cons:
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Only available to military-affiliated individuals
9. PenFed Credit Union
APR Range: Starting at 6.09%
Best For: Credit union members
PenFed offers credit union-level rates with fewer fees and a wide selection of loan products, including VA and conventional loans. Membership is open to anyone who joins a qualifying association.
Pros:
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Very competitive APRs
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Low fees
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Good refinancing options
Cons:
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Slower application process
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Limited in-person branches
10. Guild Mortgage
APR Range: Starting at 6.22%
Best For: First-time homebuyers and FHA loans
Guild Mortgage specializes in helping first-time buyers with low down payment options and government-backed loans like FHA, VA, and USDA. Their flexible qualification criteria make homeownership accessible to many.
Pros:
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Great for first-time buyers
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Down payment assistance
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Variety of government-backed loans
Cons:
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Not as tech-forward as some lenders
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Regional availability may vary
Tips to Get the Lowest Mortgage APR in 2025
To secure the best possible rate, here are some key steps:
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Improve Your Credit Score: Aim for at least 700+. The higher your score, the better the rates.
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Shop Around: Don’t settle for the first quote. Compare offers from at least 3-5 lenders.
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Consider Points: Paying mortgage points upfront can lower your APR.
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Choose a Shorter Term: 15-year loans have lower APRs but higher monthly payments.
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Reduce Your Debt-to-Income Ratio (DTI): Lenders prefer DTI below 43%.
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Save for a Bigger Down Payment: The more you put down, the less risky you look to lenders.
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Avoid Unnecessary Fees: Watch out for high origination and underwriting fees.
Final Thoughts
Securing a mortgage loan with a low APR in 2025 can help you save thousands over the life of your home loan. Whether you’re a first-time buyer, refinancing, or purchasing a second home, the lenders listed above offer some of the best value in today’s market.
Always remember: the best mortgage isn’t just the one with the lowest APR. It’s the one that matches your financial goals, lifestyle, and budget.
Take your time, compare offers, and don’t hesitate to consult with a mortgage advisor or financial planner. Your dream home — and a smart loan to match — are within reach in 2025.
