Half a percent on a 30-year mortgage is worth tens of thousands of dollars. Here is how to squeeze the lowest rate out of the market.
- Raise your credit score. The single biggest factor. 760+ gets the best rates.
- Put more down. 20% down beats 5% down — lower risk, lower rate, no PMI.
- Shop multiple lenders. Rates vary by 0.5% or more between lenders for the same borrower.
- Compare loan types. Conventional, FHA and VA all price differently.
- Buy points. Paying 1% of the loan upfront can cut the rate 0.25%.
- Shorten the term. 15-year loans carry rates about 0.5% lower than 30-year.
- Lower your DTI. Pay down debts before you apply.
- Lock at the right time. Rates move daily; lock when you see a dip.
Whatever rate you land on, see what it actually costs each month on our mortgage calculator before you sign.