Are Advertised Mortgage Rates Real? How FreeRateUpdate Checks Its Rates
Most advertised mortgage rates are real offers. Each one is priced for a particular borrower: a set credit score, loan amount and down payment, and often points paid upfront. If your situation matches, you can get close to it. If it doesn't, your quote will be different, and that's how mortgage pricing works rather than a trick. The APR printed beside the rate is the quickest way to see what an offer really costs.
Last updated October 24, 2026Why your quote can differ from the ad
A lender prices your loan from your file. Your credit score, how much you put down, the property, the loan size and whether you buy points all move the rate. An ad shows one combination of those.
Federal advertising rules (Regulation Z) say an ad that states a rate has to state the APR too. The APR counts points and certain lender fees, so a low rate that depends on paying a lot of points shows a noticeably higher APR. That gap is your cue to ask what the rate assumes.
How FreeRateUpdate checks the rates it shows
Our "As Low As" rate is the rate and APR of the offer with the lowest APR that we can verify a lender or broker in our network is offering. Here's how it's built:
- We record dated snapshots of the rates participating lenders and brokers are advertising.
- Next to the rates we list the borrower scenario they're meant to reflect: a set location, loan amount and credit score. Your own quote depends on your own numbers.
- A headline rate is published only when at least three different lenders have an offer for that loan type. We count lenders by their NMLS company number, so one company can't fill all three spots. When fewer than three qualify, that loan type shows no rate.
- The points behind each rate are shown with it.
The figures aren't a quote, a promise of the rate you'll get, or a ranking of lenders. They also cover only lenders in our network, not the whole market. You can see the current figures beside the Freddie Mac national average on our network rate comparison. Ours usually sits lower, partly because it's the single best verified offer rather than an average of many lenders, and partly because it can carry more points, which the points and APR beside it show.
Can I see how the rate has changed?
Yes. Each snapshot is dated, and the As Low As rate history lists them by date, so you can see how the rate has moved instead of relying on one number.
How do mortgage comparison sites make money?
Most are paid by lenders, and FreeRateUpdate is too. Participating lenders compensate us when people shopping for a loan connect with them, and we disclose that on each of the rate pages linked here. A lender showing up in our rates isn't an endorsement of that lender.
The FreeRateUpdate Score works the same way in the open. Its weights are published, no lender can pay to change a score, and three of its four inputs come from sources you can check yourself: NMLS licensing records, consumer ratings on major review sites, and lenders' advertised rates. The fourth comes from our own records, and the score methodology says that plainly.
How to check any advertised rate
- Compare APRs, not only rates.
- Ask how many points the rate assumes, and what the rate would be with none.
- Ask what credit score, loan amount and down payment it was priced for.
- Look the lender up on NMLS to confirm it's licensed in your state.
- Get a Loan Estimate from each lender you're considering. For most mortgages it's the same standard form at every lender, which makes two offers easy to line up side by side.
| Are advertised rates real? | Usually, for the borrower profile they were priced on |
|---|---|
| What does an ad have to show with a rate? | The APR (Regulation Z) |
| What is FreeRateUpdate's As Low As rate? | The rate and APR of the lowest-APR offer we can verify a lender or broker in our network is offering |
| Is there a history? | Yes, dated, on the As Low As rate history page |
| When is a rate held back? | When fewer than three different lenders have an offer for that loan type |
| Who pays FreeRateUpdate? | Participating lenders |
Related questions
Sources
- https://www.freerateupdate.com/network-rate-spread
- https://www.freerateupdate.com/as-low-as-history
- https://www.freerateupdate.com/score-methodology
- https://www.ecfr.gov/current/title-12/chapter-X/part-1026/subpart-C/section-1026.24
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.