Cheapest Mortgage Lenders by Closing Costs

How we identify lowest-cost lenders

We use HMDA Modified Loan Application Register data, the most comprehensive public dataset of U.S. mortgage originations. We analyze only originated first-lien purchase mortgages on owner-occupied principal residences where total loan cost and rate fields are reported.

Lenders are ranked by median total loan costs (not average — medians are more resistant to outliers). We require a minimum of 500 purchase originations nationally to appear in national rankings, so results reflect lenders with meaningful volume, not statistical flukes from a small sample.

What drives closing cost differences between lenders

Origination fees are the biggest variable. Some lenders charge 1% of the loan amount in origination fees; others charge zero and make their margin on the rate instead. Neither model is inherently better — it depends on how long you keep the loan. A no-origination-fee loan at a higher rate may cost more over 30 years than a loan with upfront fees at a lower rate.

Lender channel matters too. Direct lenders (banks, credit unions that originate their own loans) often have lower overhead than broker-sold loans where multiple parties take a cut. But this is a generalization — shop by actual data, not channel assumptions.

Costs vary significantly by state and loan type

National rankings are a starting point. Costs vary substantially by state — both because state-specific fees (title insurance, transfer taxes, attorney fees) differ, and because the mix of lenders operating in each state differs. A lender that ranks #3 nationally may rank #25 in your state, or may not operate there at all.

Loan type also matters. Conventional, FHA, VA, and USDA loans have different required fees, different eligibility criteria, and often different lenders competing for them. Check rankings for your specific loan type — especially if you're using a VA or FHA loan, where the lowest-cost conventional lender may not even participate.

• Check national rankings to build your initial shortlist
• Filter by your state for more relevant comparisons
• Filter by your loan type (conventional, FHA, VA, USDA)
• Request Loan Estimates from 3+ lenders from the top of the list
• Use Fair Loan Check to audit your Loan Estimate for inflated fees