Best mortgage lenders with low fees in 2026

Taking out a mortgage can be costly. Most have to pay thousands of dollars beyond the down payment before they get the keys.

Closing costs — which include lender fees, home appraisal, title search and notary fees — can add 2% to 6% of the loan total. For example, on a $400,000 mortgage, you could be paying as much as $24,000 in closing costs.

You won't find a mortgage with no fees at all, but some lenders waive certain charges or offer financial support to help pay those expenses. CNBC Select highlights our favorites in several categories.

To learn how we made our selections, check out our methodology.

Who's this for? If you don't have the cash on hand to put anything toward closing costs, consider applying for a mortgage with Bank of America. It will provide up to $17,500 toward closing costs or down payment for eligible borrowers through its Community Homeownership Commitment Program. That's one of the best assistance programs in the industry.

Standout benefits: BoA offers a free virtual workshop called It's Great to Be Home that gives both first-time homebuyers and repeat buyers a rundown on its programs and the homebuying process at large.

Who's this for? If you're looking to borrow against your home equity, Fifth Third Bank claims it does not charge fees on its HELOCs and home equity loans.

Standout benefits: Enroll in autopay and Fifth Third Bank will give you a 0.25% rate discount.

Who's this for? If you want to lower your closing costs, consider Better. It provides borrowers with up to $2,000 in closing cost discounts when they use Better Agent Match, its real estate agent matching service.

Standout benefits: Better consistently offers below-average rates.

Who's this for? If you want to avoid an application fee, think about applying with Alliant Credit Union. It does not charge an application fee on mortgages, which can save you up to $500.

Standout benefits: To get an Alliant membership, join its Credit Union Foundation as an advocate, which doesn't cost anything.

Here are some of the most common types of mortgages you can apply for.

• Conventional mortgage: The most common type of home loan, a conventional mortgage, is offered by a private lender, such as a bank or credit union. Conventional loans typically require a down payment of at least 5%.
• FHA loan: An FHA loan is still issued by a private lender but it's backed by the Federal Housing Administration. It usually requires a smaller down payment, typically 3.5% with a credit score of 580 or 10% with a score of 500.
• VA loan: A VA loan is guaranteed by the U.S. Department of Veterans Affairs. It may be issued by a partner bank, credit union or by the VA directly. These loans usually don't require a down payment but you must be an active service member, a veteran or a surviving spouse to be approved.
• USDA loan: A USDA loan is backed by the U.S. Department of Agriculture and doesn't require a down payment or mortgage insurance. However, applicants must meet income requirements and the funds must be used to buy a home in a qualifying rural or suburban area.
• Jumbo loan: A jumbo loan exceeds the limits on mortgages backed by Fannie Mae or Freddie Mac. The conforming loan limit this year is $832,750 in most parts of the U.S., although some high-priced areas have limits up to $1,249,125.

Closing costs are an assortment of payments due when you close on a mortgage. Here are some of the fees that are included:

• Origination fee: This is the fee lenders charge to pull together and fund your loan.
• Appraisal fee: The lender will hire an appraiser to make sure the home is worth the amount you're paying. They'll add this cost to your bill.
• Home inspection fee: The lender will typically hire a home inspector to ensure the house has no red flags. You'll be responsible for this cost, too.
• Title search and insurance fee: A title search firm will make sure there are no other claims to the property and an insurance company will ensure that this is the case.

Here's what to consider when choosing a mortgage lender.

Loan types: When you're narrowing down which lenders to apply to, only pick a lender that has the type of loan you want. For example, many lenders don't offer USDA loans, so if you're searching for that product, you'll have to focus your options.

Loan limits: You'll also want to make sure that you can get a big enough loan from whatever lender you borrow from.

Down payment: If you've only saved up a small amount for a down payment, you may have to look for lenders that offer low-down-payment products.

Closing timeline: If speed is your priority, consider the average closing time.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert tors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

CNBC Select analyzed dozens of U.S. mortgage lenders to see which offered discounts on lenders fees or closing costs, waived certain charges or contributed to closing costs directly.

When ranking the best, we focused on affordability, availability, customer satisfaction and how each closing cost perk compared to other lenders.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Rates and fee structures cited for mortgages fluctuate in accordance with the Fed rate and company policy.

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