How to Secure a Lower Mortgage Rate & Save Big

Securing a lower mortgage interest rate can make a huge difference in how much you pay for your home over the long haul. Even a small reduction in your rate can save you thousands of dollars over the life of your loan, allowing you to put more money toward other financial goals.

Whether you’re a first-time homebuyer or refinancing your current mortgage, there are strategies you can use to secure a better rate. Here are some tips to help you improve your chances and reduce the overall cost of your mortgage.

 

1. Maintain a Strong Credit Score

Lenders reward higher credit scores with lower rates. To keep your score in top shape:

✔ Pay bills on time

✔ Avoid opening new credit accounts

✔ Keep existing accounts open (closing them can hurt your score)

✔ Hold off on paying off large loans right before applying for a mortgage

 

2. Stay Consistent with Employment

Your job history and income stability are key factors in loan approval. Even if a new job offers more pay, switching too soon can delay or complicate your mortgage application.

 

3. Consider a Larger Down Payment

While some loans allow as little as 3% down, putting more down can:

✔ Help you secure a lower interest rate

✔ Reduce the total interest paid over time

✔ Eliminate the need for private mortgage insurance (PMI) if you reach 20%

Have Questions About Mortgage Rates or the Home Loan Process?

If you’re curious about how a lower mortgage rate could impact your monthly payments or the overall cost of your loan, Greenway Mortgage is here to provide the answers.

Understanding the different factors that influence your rate can help you make informed decisions throughout the mortgage process. Feel free to reach out if you have any questions or need guidance on securing the best rate for your situation.

The Greenway Mortgage team is here to ensure you’re well-equipped to navigate every step of your home financing journey. 888.616.9885