A 5.5% home loan: Mortgage lenders with the best rates this week, Dec. 29, 2025

Core Insights - The top five mortgage lenders have reduced their rates to the sub-6% range, with Navy Federal leading at an offered interest rate of 5.5% and an APR of 5.614% [1][3] - A significant difference of 1.185 percentage points exists between the top lender, Navy Federal, and the lowest-ranked lender, Third Federal [4] Mortgage Rates Overview - The survey conducted by Yahoo Finance indicates that the lowest offered mortgage rate is now at 5.5%, marking a notable shift in the mortgage rate landscape [3] - The survey included 16 lenders, with notable exclusions from the top 10 being Wells Fargo, Bank of America, PNC, Fifth Third Bank, Rocket Mortgage, and Third Federal [3] Importance of APR - The annual percentage rate (APR) is emphasized as the most critical figure for borrowers, as it encompasses both the interest rate and lender fees, providing a clearer picture of annual borrowing costs [8] - Borrowers are advised to focus on APR rather than just the offered interest rate, which lenders often highlight [8] Shopping for Mortgage Rates - Shopping around for mortgage rates can lead to significant savings, potentially up to $44,000 over the life of a 30-year loan [7] - It is recommended that borrowers request quotes from multiple lenders without discount points to facilitate accurate comparisons of rates and fees [14] Discount Points and Special Offers - Discount points can be used to lower interest rates, with each point representing 1% of the loan amount and typically reducing the interest rate by about 0.25% [10] - Lenders are increasingly offering special discounts on interest rates and fees, with examples such as Citi Mortgage providing $500 off closing costs [12]