First-time homebuyers in the market today have a litany of woes. Home prices are at record highs. Saving for a down payment is tougher than ever due to soaring inflation. And now, mortgage interest rates are much higher than they were a year ago—making monthly housing payments even more expensive.
Many first-time buyers have been forced to slash their expectations as they can no longer afford their dream homes or to live in their dream neighborhoods. Others have been priced out of homeownership or are considering holding off on making such a large purchase.
But before you throw up your hands in defeat, take a deep breath. The homebuying situation might not be as bleak as it seems.
Mortgage rates have been coming down—a little—over the past few weeks. And they aren’t set in stone. They typically move a bit up or down multiple times a day. They’re also negotiable. Though you may see a certain rate advertised or your lender quotes a higher-than-desired rate, it doesn’t mean you can’t get it down. There are a variety of things potential borrowers can do to bring down their rates, including boosting their credit profile, shopping around, and paying a little extra at closing.
That’s why it really pays to score a lower rate. Here are some tips for buyers on how to bring down mortgage rates.
1. Raise your credit score, pay off debt
2. Make a larger down payment
3. Buy mortgage points to lower your rate
4. Consider new construction
5. Compare lenders—and make them compete for your business
6. Shop around for the best loan for you
SOURCE: Article Written by Clare Trapasso
On the House: 6 Crucial Tips for Bringing Down Your Mortgage Rate