Buying a home is one of the biggest financial decisions most of us will ever make. And while the price of the house itself is a huge factor, the mortgage rate you lock in can make just as much of a difference over the long run. Even a small change in interest rates — say 6.5% versus 6.0% — can mean thousands of dollars saved or lost over the life of your loan.
If you’re house hunting right now, or even just planning ahead, you might be wondering: how can I get the best mortgage rates this month? The good news is that lenders are still competing for borrowers, and there are several strategies you can use to improve your chances of landing a lower rate.
Let’s break it down step by step.
Why Mortgage Rates Change
Before jumping into the strategies, it helps to understand why rates move up and down.
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Economic conditions: Inflation, unemployment numbers, and Federal Reserve policies all influence mortgage rates.
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Housing market trends: If demand for homes is high, lenders might adjust rates.
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Your personal financial profile: Even when the “average” mortgage rate is published online, the rate you personally get depends on your credit, income, and down payment.
This month, rates may be fluctuating slightly, but that doesn’t mean you can’t take control of what you’re offered.
Step 1: Improve Your Credit Score
Your credit score is the single most important factor lenders use when setting your mortgage rate. Generally:
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760+ = excellent rates
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700–759 = good rates
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650–699 = fair rates
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Below 650 = higher rates and stricter terms
Quick ways to boost your score before applying:
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Pay down credit card balances – High utilization drags your score down.
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Don’t apply for new credit – Each hard inquiry can knock a few points off.
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Check for errors – Sometimes credit reports have mistakes that unfairly lower your score. Dispute them early.
Even improving your score by 20–30 points could mean a better mortgage offer.
Step 2: Save for a Larger Down Payment
Lenders love borrowers who put more money down because it lowers their risk. A higher down payment often leads to a lower interest rate.
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5% down – May qualify for a loan, but you’ll likely pay more in interest.
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10–20% down – Much better chance at competitive rates.
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20%+ down – Avoids private mortgage insurance (PMI) and puts you in the best negotiating position.
If you’re not in a rush, consider saving a few more months to increase your down payment. The difference could save you tens of thousands in interest.
Step 3: Shop Around and Compare Lenders
Too many people make the mistake of getting just one mortgage quote and going with it. Big mistake.
Different lenders can offer wildly different rates — sometimes a half percent or more apart. On a $300,000 loan, that half percent could mean a difference of $80–$120 per month.
Where to shop for quotes:
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Traditional banks
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Credit unions
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Online mortgage lenders
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Mortgage brokers who shop multiple lenders for you
💡 Tip: When you apply with multiple lenders within a 45-day window, the credit checks typically count as one hard inquiry, so it won’t hurt your score much.
Step 4: Choose the Right Loan Type
The type of mortgage you choose also affects your rate:
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30-year fixed-rate mortgage – Popular and stable, but usually has higher rates.
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15-year fixed-rate mortgage – Lower rates and less total interest, but higher monthly payments.
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Adjustable-rate mortgage (ARM) – Lower initial rates, but they can adjust upward later.
If you know you’ll stay in the home long-term, a fixed rate is safer. But if you expect to sell or refinance in 5–7 years, an ARM might save you money in the short term.
Step 5: Lock in Your Rate at the Right Time
Mortgage rates can change daily. Once you find a good offer, ask your lender about a rate lock. This guarantees your rate for 30, 45, or even 60 days while your loan is processed.
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If rates rise, you’re protected.
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If rates drop, some lenders offer a “float down” option, letting you grab the lower rate.
Timing your lock can feel like a gamble, but in a fluctuating market, it’s worth securing peace of mind.
Step 6: Reduce Your Debt-to-Income Ratio
Lenders want to see that you’re not stretched too thin financially. Your debt-to-income ratio (DTI) is the percentage of your income that goes toward monthly debt payments.
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Aim for below 36% for the best chance at low rates.
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Paying off car loans, personal loans, or credit cards before applying can lower your DTI.
This not only improves your odds of approval but can directly influence the rate you’re offered.
Step 7: Consider Points to Buy Down Your Rate
Some lenders let you purchase discount points. This means you pay extra upfront (usually 1% of the loan amount per point) to reduce your mortgage rate.
For example:
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Paying $3,000 on a $300,000 loan might lower your rate by 0.25%.
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Over 30 years, that could save you tens of thousands in interest.
Points don’t make sense for everyone, especially if you plan to sell or refinance within a few years. But if you’re keeping the loan long-term, they can be a smart move.
Step 8: Strengthen Your Application
Beyond credit and income, lenders also look at employment history and financial stability. A few ways to make yourself look more appealing:
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Stay at your current job for at least two years if possible.
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Avoid big purchases or new loans before applying.
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Have cash reserves in savings to show you can handle unexpected costs.
The more stable you appear, the more comfortable lenders are in giving you a better rate.
Final Thoughts
Getting the best mortgage rates this month isn’t about luck — it’s about preparation and strategy. Focus on your credit, save for a solid down payment, shop around aggressively, and consider the timing of your rate lock.
Even small improvements in your rate can mean huge savings over time. Think of it this way: every 0.25% you shave off could be the difference between struggling with your mortgage and comfortably affording it.
Buying a home is stressful enough. By taking these steps now, you’ll set yourself up for financial success not just this month, but for decades to come.