How to Get a Good Mortgage Rate When Rates Are High: A Smart Homebuyer's Guide
If you've been keeping an eye on mortgage rates in 2025, you know they haven't dipped below 6.5% yet this year. According to recent data from Zillow, the national average for a 30-year fixed mortgage sits at 6.53%. While this may seem like a challenging time to buy, there are strategies you can use to secure a good mortgage rate and take advantage of current home prices before they rise.
Why Buying Now Makes Sense
Despite higher mortgage rates, home prices in many markets, including Savannah, remain relatively stable. Historically, real estate prices tend to rise over time, meaning that waiting for rates to drop could result in higher home prices and increased competition. Buying now allows you to lock in a price before the market heats up again, and you can always refinance later if rates drop.
Strategies for Getting a Lower Mortgage Rate
Securing the best mortgage rate possible in a high-rate environment takes preparation and smart financial decisions. Here’s how you can improve your chances:
1. Boost Your Credit Score
A higher credit score can translate into a lower mortgage rate. Lenders reward financially responsible borrowers, so take steps to improve your credit by:
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Paying off outstanding debts and keeping balances low
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Making all payments on time
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Avoiding opening new lines of credit right before applying for a mortgage
2. Increase Your Down Payment
A larger down payment reduces your lender’s risk, which could mean a better interest rate for you. If possible, aim for at least 20% down to avoid private mortgage insurance (PMI) and secure a more competitive rate.
3. Shop Around with Multiple Lenders
Don’t settle for the first mortgage offer you receive. Compare rates from at least three to four different lenders. As a licensed Mortgage Loan Officer with Mutual of Omaha Mortgage, I can help you explore options and find the best rate tailored to your financial situation.
4. Consider Adjustable-Rate Mortgages (ARMs)
While fixed-rate mortgages provide stability, an adjustable-rate mortgage (ARM) can offer a lower introductory rate, helping you save on interest in the short term. If you plan to move or refinance within a few years, this could be a cost-effective option.
5. Buy Down Your Interest Rate
You can lower your mortgage rate by purchasing discount points at closing. This is an upfront cost that reduces your interest rate over the life of the loan. A temporary buydown option, such as a 2-1 buydown, could also help you start with a lower rate and gradually adjust to the full rate over time.
Take Advantage of Today's Market
Savannah remains a desirable market with strong long-term value. By acting now, you can secure a home at today’s prices rather than waiting for both rates and home values to climb. Whether you're a first-time homebuyer, a growing family, or an investor, I can guide you through the mortgage process and help you make a financially sound decision.
If you’re ready to explore your home financing options, reach out to me, Dave Wright, your trusted Savannah Realtor and Mortgage Loan Officer. Let’s find a mortgage solution that works for you, even in today’s high-rate environment!
