Mortgage Rate Engine
Decode exactly what your rate is — and why
Most borrowers never see the Fannie Mae pricing matrix that determines 60–80% of their rate. Enter your scenario — get the full LLPA breakdown, a rate/cost curve with break-even analysis, and four talking points for your lender negotiation. Powered by the public Fannie Mae matrix and live FRED data.
What the Rate Engine shows you
Most mortgage calculators show you a payment. This tool shows you the cost structurebehind your rate — the same analysis a loan officer runs before they quote you.
Full LLPA breakdown
Every Fannie Mae price adjustment itemized — credit score, LTV, occupancy, loan purpose, property type, lock period. See exactly which factor costs you most.
Rate/cost curve
Five rate options from lender credit (+points to you) to aggressive buy-down — each with the exact dollar cost, monthly savings, and break-even period.
Recommended strategy
Programmatic recommendation based on your break-even timeline — PAR, lender credit, or discount points — with plain-English reasoning.
Negotiation brief
Four specific talking points for your lender conversation: what to ask, where margin lives, and what you can change to move the number.
Live par rate
Anchored to the FRED Freddie Mac PMMS 30-year weekly average — the same benchmark every lender prices against.
Public matrix
Uses the Fannie Mae LLPA matrix posted at singlefamily.fanniemae.com. The same numbers your lender uses — now in your hands.
LLPA by credit score & LTV — 2026 reference
Approximate base LLPAs for a standard purchase loan on a primary-residence SFR with a 30-day lock. All values in price points (1 point = 1% of loan amount). Source: Fannie Mae public matrix.
| Credit Score | LTV ≤ 60% | LTV 70–75% | LTV 75–80% | LTV 80–85% | LTV 90–95% |
|---|---|---|---|---|---|
| 760+ | 0.000 | 0.000 | 0.000 | 0.250 | 1.000 |
| 740–759 | 0.125 | 0.500 | 0.625 | 0.875 | 1.625 |
| 720–739 | 0.250 | 0.875 | 1.125 | 1.375 | 2.125 |
| 700–719 | 0.375 | 1.125 | 1.375 | 1.625 | 2.375 |
| 680–699 | 0.625 | 1.375 | 1.625 | 1.875 | 2.625 |
| 660–679 | 1.000 | 1.750 | 2.000 | 2.250 | 3.000 |
| 640–659 | 1.500 | 2.250 | 2.500 | 2.750 | 3.500 |
| 620–639 | 1.875 | 2.625 | 2.875 | 3.125 | 3.875 |
| < 620 | 2.750 | 3.500 | 3.750 | 4.000 | 4.750 |
Base adjustments only. Add occupancy (0–1.000), loan purpose (0–2.875), property type (0–1.000), and lock period (−0.125 to +0.250). Use the calculator above for your full total.
Frequently asked questions
What are Loan-Level Price Adjustments (LLPAs)?
LLPAs are risk-based fees set by Fannie Mae that apply to all conventional conforming loans. They are charged based on your credit score, LTV, occupancy, loan purpose, and property type. The full matrix is publicly posted at singlefamily.fanniemae.com. HomeRates.ai encodes this public data so you can see your exact adjustment before talking to a lender.
Why is my rate higher than the advertised rate?
Advertised "as low as" rates assume a perfect borrower: 760+ FICO, 20% down, primary residence, purchase loan on an SFR. Your actual rate includes your LLPA total (which can add 0–4+ points to your base cost) plus the lender's own margin. The Rate Engine shows exactly how each factor affects your specific rate.
How do mortgage discount points work?
One discount point (1% of loan amount) typically buys down your rate by ~0.25%. The break-even period is how many months until monthly savings recoup the cost — usually 48–72 months. If you keep the loan past break-even, points save money. If you sell or refi before that, skip them and take lender credits instead.
What is a lender credit?
A lender credit lets you take a slightly higher rate in exchange for cash at closing — the opposite of paying discount points. It makes sense if you plan to sell or refi within a few years, or need to reduce your closing costs. The Rate Options table shows the exact dollar amount for your scenario.
Do all lenders charge the same LLPAs?
Yes — the base LLPA matrix is fixed by Fannie Mae and applies to every lender selling conforming loans to Fannie Mae. What varies between lenders is their own origination margin on top (typically 0.50–1.50 points). This is why getting 3 Loan Estimates matters: LLPAs are the same everywhere, but lender margin is negotiable.
How do I get the best rate for my scenario?
The highest-impact moves: get your credit score to 760+ (best LLPA tier), put down 20% or more (drops LTV below 80%), close in 15 days if possible (-0.125 pts), and compare at least 3 Loan Estimates by origination fee (Line A). The Rate Engine shows your break-even on each scenario.