Finding the right mortgage can be tough, especially when interest rates change so often. If you’re planning to buy a home, refinance, or explore a VA or FHA loan, it’s important to know what you’re getting into. That’s where understanding KeyBank mortgage rates becomes helpful.
In this guide, we’ll walk you through KeyBank’s latest mortgage offers, including their current rates, available loan types, discounts, and fees, so you can decide if KeyBank is the right choice for your next move.
Understanding KeyBank Mortgage Rates
KeyBank provides home loans in over 15 states, including Ohio, New York, Michigan, and Colorado. Whether you’re a first-time buyer or refinancing an existing home, KeyBank offers a variety of mortgage options, such as 15-year and 30-year fixed-rate loans, FHA loans backed by the government, and VA loans for eligible veterans.
One of the best things about KeyBank is how often they update their rates. KeyBank mortgage rates are posted daily on their website, so you always know where you stand when it comes to costs. This transparency helps you compare easily and plan your mortgage budget better.
Current KeyBank Mortgage Rates
To give you a clearer picture, here are the typical KeyBank mortgage interest rates for buyers, updated on July 9, 2025:
| Loan Type | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed | 6.625% | ~6.71% to 6.74% |
| 15-Year Fixed | 5.750% | ~5.90% to 5.94% |
| 30-Year FHA Loan | 6.500% | ~7.45% to 7.48% |
| 30-Year VA Loan | 6.500% | ~6.81% to 6.84% |
These rates are based on a borrower with a credit score of 740+, a loan-to-value (LTV) ratio of 75% or lower, and who opts into automatic payments from a KeyBank checking account.
Keep in mind, these KeyBank mortgage rates are just examples. Your actual rate may be higher or lower depending on:
- Your credit score
- Your debt-to-income ratio
- The amount of your down payment
- The type of loan you apply for
Moreover, it’s worth noting that APRs (Annual Percentage Rates) include estimated closing costs and fees, so they’re usually slightly higher than the interest rate. If you’re serious about buying or refinancing, it’s best to speak with a KeyBank mortgage loan officer. They’ll give you a custom quote and help you lock in a rate that matches your situation.
Comparing KeyBank Mortgage Rates to the Market
According to recent data from Freddie Mac, the national average for a 30-year fixed-rate mortgage is around 6.67% as of July 2025.
KeyBank’s 6.625% offering is slightly better than average, especially with the 0.25% discount factored in. While some online lenders might beat that rate, KeyBank’s strength lies in its personal service, regional presence, and bundled perks for loyal customers.
Sample Payments and Affordability
Let’s put these KeyBank mortgage rates into a real-world context. Based on KeyBank’s estimates:
A 30-year fixed loan of $300,000 at 6.625% would result in:
- Monthly Principal & Interest: ~$1,920
- Total Interest Over Life of Loan: ~$392,000
A 15-year fixed loan at 5.75% would have:
- Monthly P&I: ~$2,490
- Total Interest: ~$148,000
Though monthly payments are higher on shorter terms, the long-term savings can be substantial. The right choice depends on your monthly budget and how long you plan to stay in the home.
KeyBank Refinance Rates
While KeyBank doesn’t list refinance rates publicly in real-time like its purchase rates, borrowers can contact a mortgage loan officer to get a personalized quote based on:
- Current loan balance
- Credit score
- Home value (for loan-to-value ratio)
- Income and employment history
- Desired term (e.g., 15 vs. 30 years)
KeyBank Relationship Discount
One of the standout benefits of getting a mortgage with KeyBank is their 0.25% interest rate discount. This perk is designed to reward existing customers and those who set up automatic payments. Here’s how it works:
You can qualify for the interest rate reduction in two different ways:
- Bank with KeyBank:
- You must have a KeyBank checking account classified as a personal consumer account.
- You must complete at least five qualifying transactions in a single calendar month before applying.
- Qualifying transactions include debit card purchases, direct deposits, ATM withdrawals, bill payments, and more.
- Set Up Automatic Payments:
- If you don’t meet the first option, you can still earn the KeyBank mortgage discount by enrolling in automatic monthly mortgage payments from a KeyBank checking account.
- You must complete and submit the automatic payment form at least 7 business days before your loan closing.
Either of these actions makes you eligible for the discount, which can significantly reduce your overall interest costs across the life of your mortgage.
Where the KeyBank Mortgage Discount Applies:Â
- For fixed-rate mortgages, the 0.25% discount is applied directly to your KeyBank mortgage rate on the promissory note.
- For adjustable-rate mortgages (ARMs), the discount applies during the initial fixed-rate period and adjusts the maximum rate cap allowed over time.
Last but not least, please keep in mind that the discount can’t be combined with some other promotions, and not all loan types may be eligible. Make sure to check with a mortgage officer for exact details.
Main Mortgages Offered by KeyBank
The bank offers a variety of mortgage options with different KeyBank mortgage rates designed to fit different life stages, financial goals, and homeownership plans. Whether you’re buying your first home or looking to refinance, there’s likely a loan that suits your needs.
Conventional Fixed-Rate Loans
These are the most traditional home loans and are available in 10-, 15-, 20-, or 30-year terms. The biggest benefit? Your monthly payments stay the same for the life of the loan.
That makes budgeting easier and gives you peace of mind knowing your payment won’t suddenly go up.
Who it’s best for: Homebuyers who plan to stay in their home for a long time and want a stable payment they can rely on.
FHA Loans
FHA loans are insured by the Federal Housing Administration, making them more accessible to people with lower credit scores or smaller savings. These loans typically require a lower down payment, sometimes as little as 3.5%, and are more flexible when it comes to credit history.
Who it’s best for: First-time homebuyers or anyone who may not qualify for a conventional loan.
VA Loans
VA loans are designed for veterans, active-duty service members, and eligible surviving spouses. They’re backed by the U.S. Department of Veterans Affairs and offer several powerful benefits: no down payment in most cases, competitive KeyBank mortgage rates, and lower upfront costs compared to other loans.
Who it’s best for: Military families looking to buy or refinance a home with minimal upfront expense.
Adjustable-Rate Mortgages (ARMs)
Unlike fixed-rate loans, ARMs start with a lower interest rate for a set period, usually 5, 7, or 10 years. After that, the rate adjusts annually based on a market index like SOFR. For example, a 5/1 ARM means your rate is fixed for 5 years and then can change each year afterward.
Who it’s best for: Homebuyers who don’t plan to stay in the home long-term or who expect to refinance before the adjustable period begins.
Refinancing Options
If you already own a home and want to lower your monthly payment, reduce your interest rate, or tap into your equity, refinancing through KeyBank could be a smart move. KeyBank offers two refinancing options:
- Rate-and-term refinancing: Replace your current loan with a new one to lower your monthly payment or change the loan term.
- Cash-out refinancing: Borrow against your home’s equity to access extra cash for things like renovations, education costs, or debt consolidation.
Both refinancing options come with the same rate discounts and terms as new purchase loans, so you can still benefit from automatic payment perks or relationship pricing.
How to Qualify for a Mortgage with KeyBank
Getting approved for a mortgage with KeyBank depends on several financial factors. While the bank doesn’t list all of its requirements publicly, here’s what most borrowers will need to meet:
Minimum Credit Score
KeyBank typically looks for a credit score of 620 or higher for most conventional loans. However, to qualify for the best KeyBank mortgage rates, like the ones shown earlier, you’ll likely need a FICO score of 740 or more.
If your credit is lower, don’t worry, KeyBank also offers FHA loans and Key Community Mortgage options, which may allow for more flexible credit requirements and lower down payments.
Debt-to-Income Ratio (DTI)
Though KeyBank doesn’t publish a maximum DTI ratio, most lenders prefer to see your total monthly debt payments (including your new mortgage) at 36% or less of your monthly income. A lower ratio shows you can comfortably manage your monthly obligations.
Down Payment
Your required down payment depends on the loan type:
- Conventional loans usually require at least 3% to 5% down
- FHA loans may allow down payments as low as 3.5%
- VA loans may not require any down payment at all
- Key Community Mortgage programs may also offer 0% down options for qualifying borrowers in specific neighborhoods
Maximum Loan Amount
KeyBank doesn’t publish a minimum loan size, but the maximum loan limit for SilverKey jumbo mortgages is $3 million. These loans are designed for high-value homes and require excellent credit and financial documentation.
What Documents Will You Need?
Before you apply, be prepared to show documents that prove your identity, income, and financial stability. Here’s a list of what most borrowers need to provide:
- Government-issued ID (driver’s license, passport, etc.)
- Social Security number
- Recent pay stubs (usually the last 30 days)
- W-2 forms (from the past two years)
- Federal tax returns (last two years, especially for self-employed applicants)
- Bank statements (covering the last two months)
- Proof of down payment funds
- Documentation of other income, such as rental income, alimony, or investments
- If applicable: divorce decree, gift letter, or employment verification
How to Apply for a Mortgage with KeyBank
Unlike many online mortgage lenders, KeyBank does not offer a full online application process. You’ll need to speak with a mortgage loan officer to get started.
Here’s a step-by-step guide:
- Get Prequalified: Speak to a KeyBank loan officer to get prequalified. This helps you understand how much you may be able to borrow based on your income, credit, and existing debts.
- Submit Documentation: Once prequalified, gather the documents listed above. Your loan officer will walk you through what’s needed based on the loan you’re applying for.
- Get Preapproved: After reviewing your documentation, KeyBank will issue a preapproval letter. This strengthens your offer when house hunting and shows sellers you’re a serious buyer.
- Lock in Your Rate: If you’re ready to move forward, ask your loan officer to lock in your mortgage rate. KeyBank typically offers a 60-day rate lock, which protects you from rising interest rates during that time.
- Close on Your Loan: After appraisal, underwriting, and final approval, you’ll attend a closing meeting to sign paperwork and finalize the purchase. Then, the keys are yours!
Pros and Cons of KeyBank Mortgage Rates
To help you make a smart decision, here’s a quick breakdown of KeyBank mortgage rate strengths and drawbacks:
Pros of Keybank mortgage rates:Â
- Competitive Rates: Especially for borrowers with excellent credit who qualify for the 0.25% discount.
- Diverse Loan Options: Includes conventional, FHA, VA, jumbo, and community mortgage programs.
- Local Support: Work one-on-one with licensed loan officers in your area.
- Rate Lock: Enjoy a 60-day interest rate lock while you finalize your loan.
Cons of Keybank mortgage rates:
- Limited Online Application Process: You can’t fully apply online; a conversation with a loan officer is required.
- Not Available in All States: KeyBank only lends in about 15 states.
- Higher FHA APRs: Government-backed loans like FHA may carry higher annual percentage rates due to additional fees.
From the analysis above, we can see that KeyBank is a strong choice for borrowers who:
- Live in a state where KeyBank operates
- Already bank with KeyBank (or are open to switching)
- Want personal, local service from licensed loan officers
- Have strong credit and want access to rate discounts
If you fit this profile, the combination of competitive KeyBank mortgage rates, relationship pricing, and loan options may offer real savings. However, if you need a completely digital application process or live outside their service areas, you might want to compare lenders.
How to Maximize Your KeyBank Mortgage Rates
Getting a good interest rate doesn’t just come down to luck. It’s often the result of careful planning. If you want to secure the best possible deal from KeyBank or any lender, here are five simple but effective strategies:
- Raise Your Credit Score: Lenders reward borrowers with high credit scores. If your score is 740 or above, you’re more likely to qualify for the lowest KeyBank mortgage rates. To improve your credit, pay bills on time, keep credit card balances low, and avoid applying for new debt right before your mortgage application.
- Lower Your Loan-to-Value Ratio (LTV): Your LTV is the ratio of your loan amount to the home’s appraised value. A lower LTV means less risk for the lender. If you can make a down payment of 25% or more, you’ll not only reduce your borrowing amount, but you may also unlock a better rate.
- Use Auto-Pay from a KeyBank Account: Setting up automatic payments from a KeyBank checking account can knock 0.25% off your mortgage rate. This discount adds up over time and also ensures you never miss a due date.
- Compare Offers from Multiple Lenders: Don’t settle for the first offer you get. Ask at least two or three lenders for a Loan Estimate (LE), which outlines the interest rate, closing costs, and monthly payment. Comparing these side-by-side helps you spot hidden fees or better deals.
- Understand How ARMs Work: If you’re considering an adjustable-rate mortgage (ARM), make sure you ask about the rate cap (the maximum your rate can go up) and when it might adjust. A 5/1 ARM, for example, will adjust after year five, so be sure you’re prepared for potential payment increases.
FAQs About KeyBank Mortgage Rates
Can I lock in my KeyBank mortgage rate?
- Yes. KeyBank typically allows you to lock in your rate for up to 60 days during the application process. This helps protect you from rate increases while your loan is processed.
Does KeyBank offer rate discounts for veterans?
- Yes. Veterans may qualify for special VA loan rates. Plus, if you set up automatic payments or have a KeyBank checking account, you could receive an additional 0.25% rate discount.
How often are KeyBank mortgage rates updated?
- KeyBank updates its published mortgage rates daily. However, rates can still change based on market conditions or your personal financial profile.
Can I get pre-approved for a KeyBank mortgage online?
- Yes. You can start the pre-approval process online through KeyBank’s website. However, final approval may require in-branch or phone follow-up, especially for new customers.
Are KeyBank mortgage rates competitive in 2025?
- As of mid-2025, mortgage rates at KeyBank are slightly better than the national average, especially when using auto-pay and qualifying for relationship discounts.
KeyBank offers solid mortgage products, especially for loyal customers and first-time buyers seeking conventional or government-backed loans. KeyBank mortgage rates are competitive, and their relationship perks add real value. Still, like any financial decision, it comes down to fit. If you want local support, a trustworthy regional bank, and a simple discount structure, this bank is worth a close look.
