How to Get a Lower Mortgage Rate: 3 Things You Can Control Right Now

If you’re thinking about buying a home, there’s a good chance mortgage rates are on your mind. With interest rates continuing to influence affordability, many buyers are wondering whether they should purchase now or wait for rates to come down.

While it’s easy to focus on what the Federal Reserve might do next or where mortgage rates are headed, the reality is that you have more control over your mortgage rate than you might think.

You can’t control the economy, inflation, or the overall direction of interest rates. But you can make strategic decisions that may help you secure a better rate and potentially save thousands of dollars over the life of your loan.

Here are three things you can control when it comes to your mortgage rate.

1. Your Credit Score

Your credit score is one of the biggest factors lenders consider when determining your mortgage rate. Generally, borrowers with stronger credit profiles qualify for more competitive interest rates.

Even a small difference in your mortgage rate can have a significant impact on your monthly payment and the total interest you pay over time.

If you’re planning to buy a home, consider taking a few steps to strengthen your credit before applying for a mortgage:

• Pay your bills on time and avoid missed payments.
• Reduce outstanding credit card balances.
• Avoid opening new credit accounts before purchasing a home.
• Review your credit report for errors or inaccuracies.

You don’t necessarily need a perfect credit score to purchase a home. Different loan programs have different credit requirements, and a knowledgeable lender can help you understand your options.

The takeaway: Improving your credit profile before purchasing a home may put you in a stronger position to qualify for a more favorable mortgage rate.

2. The Type of Mortgage You Choose

Not all mortgages are created equal. The type of loan you select can influence your interest rate, monthly payment, and long-term financial flexibility.

Depending on your financial situation and how long you plan to own the property, certain loan programs may offer advantages over others.

Some common options include:

Conventional Loans: A popular option for buyers with established credit and stable finances. These loans offer a variety of down payment options and fixed or adjustable interest rates.

FHA Loans: Government-insured loans that may provide more flexibility for buyers with lower credit scores or smaller down payments. However, mortgage insurance costs should be factored into the overall payment.

VA Loans: Available to eligible veterans, active-duty service members, and certain surviving spouses. VA loans often offer competitive interest rates and do not require a down payment in many situations.

Adjustable-Rate Mortgages (ARMs): These loans typically offer an initial fixed-rate period before the interest rate can adjust. They may provide a lower starting rate than comparable fixed-rate loans, but buyers should understand the potential for future payment increases.

It’s important to compare more than just the advertised interest rate. Closing costs, mortgage insurance, loan terms, and the annual percentage rate (APR) all play a role in determining the true cost of borrowing.

The takeaway: Choosing the right mortgage program for your financial goals can be just as important as securing a competitive interest rate.

3. Whether You Buy Down Your Interest Rate

One option buyers sometimes overlook is the ability to lower their mortgage rate by paying discount points at closing.

Mortgage discount points are upfront fees paid to a lender in exchange for a lower interest rate. Generally, one point costs 1% of the loan amount, although the amount of rate reduction varies by lender and market conditions.

For example, on a $600,000 mortgage, one discount point would cost $6,000.

Whether purchasing points makes financial sense depends on how much the rate decreases, how long you plan to keep the mortgage, and how quickly your monthly savings offset the upfront cost.

Another strategy is negotiating a seller concession that can be applied toward allowable closing costs or an interest rate buydown.

In certain markets, sellers may be willing to contribute toward a buyer’s financing costs rather than reduce the home’s purchase price.

There are two common approaches:

• Permanent Rate Buydown: Discount points lower the interest rate for the life of the loan.
• Temporary Rate Buydown: An upfront subsidy reduces the buyer’s effective monthly payment during the first one to three years, depending on the program. After that period, payments return to the full note-rate amount.

Both strategies can help buyers manage housing costs, but they work differently. It’s important to review the numbers with your lender before deciding which approach makes sense.

Want to see how different mortgage rates could impact your monthly payment? Use this Mortgage Calculator from OriginPoint to explore different home prices, down payments, loan terms, and interest rates.

The takeaway: Negotiating seller concessions or purchasing discount points may help make your mortgage payment more manageable without waiting for market rates to change.

Don’t Let Mortgage Rates Be the Only Factor in Your Decision

Mortgage rates are important, but they’re only one piece of the homebuying equation.

Home prices, available inventory, competition among buyers, and your personal financial situation all play a role in determining when it makes sense to purchase.

In markets like Highlands Ranch, Castle Pines, and Breckenridge, conditions can vary significantly by neighborhood and price point. Understanding those differences can create opportunities for buyers, particularly when sellers are open to negotiating price, closing costs, or financing incentives.

Rather than trying to perfectly time the mortgage market, focus on what you can control: your financial preparation, your financing options, and your negotiation strategy.

For buyers considering higher-end properties, financing is just one part of the decision. Market trends, property features, and long-term value are equally important. For more insight, read my previous article, 5 Luxury Real Estate Trends to Watch in 2026.

Thinking About Buying a Home in Colorado?

Whether you’re considering a primary residence in Douglas County, or a mountain property in Breckenridge or Summit County, having the right strategy matters.

With 14 years of experience in Colorado real estate, I help buyers navigate local market conditions, identify opportunities, and negotiate favorable terms. I also work closely with trusted lending professionals who can help you evaluate financing options and understand the true cost of homeownership.

You don’t have to wait for mortgage rates to drop to start exploring your options. The right preparation and negotiation strategy can make a meaningful difference in your homebuying experience.

If you’re considering purchasing a home, I’d be happy to discuss what I’m seeing in the market and help you determine your next steps.

Visit RyanWilsonHomes.com to Explore Colorado Real Estate and Connect With Me

Ryan Wilson

Coldwell Banker Realty | The Lee Team

CLHMS | CREN | GRI

Serving Douglas County, South Metro Denver, Breckenridge, and Summit County.

Mortgage information is provided for educational purposes only. Loan programs, interest rates, qualification requirements, and seller concession limits vary. Consult a licensed mortgage professional for financing advice specific to your circumstances.