10 Ways to Lower Your Interest Rate When Buying a Home

Getting a lower interest rate on your mortgage isn’t just about bragging rights—it’s about saving tens of thousands over the life of your loan. Whether you’re buying your first home, upgrading, or refinancing, here’s how to make sure you’re not leaving money on the table.

1. Boost That Credit Score

Your credit score is basically your mortgage GPA. The higher it is, the better your “grade”—and the lower your interest rate. Pull your credit report, fix any errors, pay down credit cards, and keep your bills on time. Simple changes now can make a big difference later.

2. Shop Around Like You’re Buying a Car

Don’t just take the first loan offer that rolls in. Compare quotes from banks, credit unions, online lenders, and—yes—a mortgage broker like me. One lender’s “best rate” could be another lender’s Tuesday afternoon special.

3. Buy Down the Rate with Points

You can pay extra up front to lock in a lower interest rate. It’s called “buying points.” One point = 1% of your loan amount. If you’re planning to stay in the home long enough, those points can save you serious cash in the long run.

4. Drop a Bigger Down Payment

The more skin you put in the game, the less risk the lender sees. If you can swing 20% down, you’ll not only dodge PMI (Private Mortgage Insurance), you might get a better rate too.

5. Show You’ve Got Steady Money Coming In

Lenders want to know you’re good for it. If your income is consistent and your debt is under control, you’re in a better spot to negotiate for lower rates. Tax returns, pay stubs, and a solid job history all matter.

6. Choose a Shorter Loan Term

A 15- or 20-year loan usually comes with a lower interest rate than a 30-year one. Yes, your monthly payment will be higher—but you’ll save a TON on interest overall.

7. Make Your House Shine (for Refinancers)

If you’re refinancing, a higher appraised value means a lower loan-to-value ratio, which can land you a better rate. Clean up, fix what’s broken, and maybe do a few smart updates before the appraiser comes by.

8. Lock It In Before It Jumps

Rates move like gas prices—what’s low today could spike tomorrow. Once you’re happy with your offer, ask your lender to lock that rate before the market shifts.

9. Stack Some Cash on the Side

Lenders love seeing that you’ve got savings beyond your down payment. A financial cushion shows them you’re less likely to miss payments if life throws a curveball.

10. Team Up with a Mortgage Broker (That’s Me)

Let me do the legwork. I’ve got access to lenders you probably don’t, and I can often find rates and terms that blow retail offers out the water. I’m based in Katy, TX and help folks all over the Lone Star State get prepped and positioned for homeownership success.

💬 Ready to Lower Your Interest Rate?

Let’s review your file and see how much you could save.
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And while you’re at it, use my Home Affordability Calculator to see how much house fits your budget.