Strategies that can help you lower your mortgage rate
December 17, 2022
Two days ago the federal reserve raised interest rates for the 7th time this year.
The Federal Funds Rate was 0.25% in March 2022 and now it is 4.50%. If you are in the market to purchase a home, below is a list of homebuying strategies that can help you lower your mortgage rate.
Buying down your rate with points
Considering an ARM with a low intro rate
Using a shorter loan term
Making a bigger down payment
Choosing a different property
Choosing a different loan product
Making lenders compete
Working with a mortgage broker
Improving your credit
Rising interest rates are not good news for any homebuyers however today's rates are far better than those in the 1980s. In 1981 the annual average rate was 16.63% according to Freddie Mac data. In addition to the above strategies, I suggest working with experienced professionals and shopping around for the best loan product.
