Compare current Citi mortgage rates today

Navigating today’s mortgage rates can be tricky, but don't worry—we're here to help. Keep in mind, the mortgage interest rates you see are just a starting point. Remember to check the APR for a complete picture.

Current mortgage & refinance interest rates

Take a closer look at the mortgage interest rates for conventional loans offered by Citi today.

Rates based on a mortgage in California only. Internet rates and APR good through 11am ET.

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Chat with your local Citi Home Loan Officer to explore your options.

Understanding mortgage interest rates

Getting the hang of the ins and outs of interest rates can be challenging. Let’s unpack the hottest mortgage topics on everyone's mind.

How do mortgage rates work?

Mortgage rates are essentially the interest you pay on your home loan. When you borrow money to buy a house, you're not just paying back what you borrowed; you're also paying an extra bit each month as interest. This interest rate influences how much you pay every month and the total cost over the life of your loan. Rates fluctuate often due to economic factors, loan types and lender choice, so it’s crucial to shop around to find the best deal.

Why do mortgage rates change every day?

Mortgage rates change daily due to fluctuations in the broader economy. Factors such as inflation, economic growth and policies set by the Federal Reserve can impact rates. For instance, the Federal Reserve's decisions on the federal funds rate can indirectly affect mortgage rates. As economic conditions ebb and flow, lenders adjust their rates to manage their risk.

Fixed vs. adjustable-rate mortgage. What’s the difference?

Trying to decide whether to go with a fixed-rate or an adjustable-rate mortgage? Let’s simplify it for you. With a fixed-rate mortgage, your interest rate is set in stone for the entire length of your loan. This means your monthly payments stay the same, making it super easy to budget and plan ahead without worrying about interest rates going up.

On the other hand, an adjustable-rate mortgage (ARM) starts you off with a lower interest rate than what you'd typically get with a fixed-rate mortgage. But keep in mind that this rate isn’t permanent. It stays put for a while, but after that initial period, it can fluctuate based on the market trends. This could work well if you're not planning to stay in your home long term or if you're in a market where rates are high but are expected to drop.

Fixed or adjustable-rate loan

Find out what works best for you.

Fixed Rate	Adjustable-Rate
Consistent interest rate for life of loan	May have lower initial interest rate for fixed period
Unchanging monthly loan payments, only for P&I	Variable interest rate after initial fixed period
Long-term cost savings by avoiding fluctuating rates	Rate adjustment caps limit how much interest rates can increase
Best for buyers seeking financial stability	Best for buyers planning to move or refinance in near future
Learn More	Learn More

What factors determine your mortgage rate?

Multiple variables will play a role in your mortgage rate.

Credit Score: A higher credit score can result in a lower interest rate because this score tells lenders that you’re a low-risk borrower.
Home Location: Rates can vary depending on the state and even the county you want to settle down in.
Home Price & Loan Amount: The size of your loan can affect your interest rate. Large or small loans may come with a higher rate.
Down Payment: Generally, a larger down payment results in a lower interest rate because it mitigates risk for your lender.
Loan Term: Shorter loan terms often have lower interest rates, but higher monthly payments compared to longer terms.
Interest Rate Type: Rates differ between fixed-rate and adjustable-rate mortgages.
Loan Type: Different types of loans, such as conventional, FHA or VA loans, come with various rates and eligibility requirements.
Occupancy Status: Mortgage rates can vary based on whether the home is your primary residence, a second home, or an investment property, with primary residences usually getting the lowest rates due to lower risk.
Home Type: The type of property you're buying—be it a single-family home, condo, townhouse or multi-family dwelling—also impacts your rate, with rates typically lower for single-family homes due to perceived lower risk.

How does your credit score affect your rate?

Your credit score is like a financial report card that lenders look at to decide how well you handle your debts. The better your score, the more reliable you appear and the lower the interest rate you're likely to get. Why? Because a high credit score suggests you're less likely to default on your loan. If your credit score isn't quite up to par, lenders might see you as a bit of a risk. To cover this risk, they might offer you a higher interest rate. It's a good idea to check your credit score ahead of time and spruce it up if needed. That way, you can secure a better rate when you apply for a mortgage.

Mortgage rate FAQs

Ever get “interest rate” and “APR” mixed up when looking at mortgage options? Let's clear that up today! Think of the interest rate as the basic cost of borrowing money for your mortgage, shown as a yearly percentage. This rate doesn't include any extra fees or costs that come with the loan. Now, the APR, or Annual Percentage Rate, is like the full package price. It includes the interest rate plus all those additional charges like mortgage insurance, most of the closing costs, discount points and loan origination fees. It's a broader measure of what you'll actually pay. So, while the interest rate tells you the basic cost, the APR gives you the bigger picture. It's usually higher than the interest rate and helps you compare the total cost of loans more effectively.
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Ever heard of mortgage points, also called discount points? They're pretty interesting when you're figuring out your mortgage details. Mortgage points are fees that you pay to your lender at closing to snag a lower interest rate on your mortgage. You pay a bit upfront to save on your future interest payments. Here’s how it works: each point costs 1% of your total mortgage amount. So, if you're borrowing $100,000, one point would cost you $1,000. Why might you consider buying points? Well, if you're planning to stay in your home for a long time, paying for points can be a smart move. The upfront cost might be a bit hefty, but the savings you'll rack up with lower monthly payments can more than make up for it over the years.
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Basis points are a unit of measurement in the mortgage world to describe rate changes. One basis point is equal to 1/100th of 1%, or 0.01%. Basis points provide a clear, precise way to discuss changes in interest rates. For example, if a mortgage rate increases from 4.25% to 4.50%, it has risen by 25 basis points.
When you choose to lock in, you're securing a specific rate with your lender for a set period, usually between 30 to 60 days. This is a smart move because it shields you from any potential rate increases while your loan is being processed. However, it's worth noting that the longer you lock in your rate, the higher it might be. If interest rates drop after you've locked in, you could end up paying more unless your lock agreement includes a float-down option. This option allows you to benefit from a lower rate if it drops during your lock period. Also, if you need more time, you can often extend your lock, but this might come at a cost, typically a few basis points. It's a good idea to discuss with your loan officer whether it's better to keep your options open and opt for a shorter lock period, especially if rates might go down.
It’s not about which loan is “better.” It’s about which loan is better for you. A short-term loan is ideal for buyers who can afford higher monthly bills with the goal of paying less interest over the life of the loan. This works great if you have wiggle room in your budget or if you want to pay off your loan faster. On the other hand, long-term loans are best for those who want a lower monthly payment. Keep in mind, longer terms typically come with higher interest rates. Whatever you choose, make sure your loan works for you and your family’s needs.
Similar to a traditional mortgage, a reverse mortgage loan enables homeowners to borrow funds using their home as collateral, with the home's title remaining in their name. However, unlike traditional mortgages, reverse mortgage loans don't require monthly payments from borrowers. Instead, the loan is settled when the borrower no longer resides in the home. Each month, interest and fees are added to the loan balance, causing it to grow over time. This means that the amount owed to the lender increases, while home equity decreases.
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