Mortgage Rate Update Plus 7 Clever Tricks to Score a Lower Rate NOW
Freddie Mac's Primary Mortgage Market Survey® (PMMS®) recently revealed that as of June 29, 2023, the 30-year fixed-rate mortgage (FRM) averaged 6.71%. Over the past six months, mortgage rates have remained relatively stable in the range of six to seven percent.
However, don't fret just yet! There are effective strategies available to help you secure a more favorable mortgage rate, bringing you closer to achieving affordable homeownership.
According to Sam Khater, Chief Economist at Freddie Mac, the surge in new home sales has surpassed the resale market, primarily due to an increased supply of newly constructed homes. This positive trend has resulted in price stabilization, offering a promising outlook for aspiring homeowners like you.
Now, let's dive into the nitty-gritty of ways to lower your mortgage rate without waiting for market changes.
Explore Government-Backed Loans:
Government-sponsored programs, such as FHA loans or VA loans for eligible veterans, may offer more competitive interest rates.
Consider New Construction Homes:
Newly built homes are lower priced in many areas! This isn't typically the case. However, the current market is swinging this way, making it an ideal time to snag a new home with energy-efficient appliances at a great deal.
Inquire About Local Down Payment Assistance Programs:
Eligibility for down payment assistance varies and can be specific to the location of the home, type of property, your status as a first-time homebuyer, or even your profession (like an educator or first responder). Contact us for more details.
Increase Your Down Payment:
A larger down payment can help you secure a lower mortgage rate. Consider taking on a side hustle or selling items you already have for profit. Are you due for a raise? Now is the perfect time to negotiate one!
Pay for Discount Points:
Discount points are fees paid upfront to reduce the interest rate on your mortgage. Each point typically costs 1% of the loan amount and can potentially secure a lower interest rate for the entire loan duration.
Improve Your Debt-to-Income Ratio:
A lower debt-to-income ratio indicates better financial stability, potentially leading to a better mortgage rate. Focus on paying off existing debts and explore opportunities to increase your income to improve this ratio.
Improve Your Credit Score:
A higher credit score can lead to lower mortgage rates. To enhance your credit score, make sure to pay bills on time, reduce outstanding debts, and avoid unnecessary credit applications.