BiggerPockets Daily Methods You Can Use to Lower Your Mortgage Rate
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Oct 26, 2025 Discover nine clever methods to lower your mortgage rate beyond the usual options. Learn why locking in your mortgage midweek can save you money. Explore adjustable-rate mortgages for short-term holds and the benefits of strong credit and larger down payments. Find out how to negotiate seller credits and consider a 2-1 buydown for early payment relief. Discover the potential of buying now and refinancing later, plus tips on optimizing your debt-to-income ratio and using FHA loans for smart investing.
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Time Your Rate Lock Midweek
- Lock your mortgage rate midweek to often shave about 0.15% off the rate compared to Mondays.
- That small percentage can save thousands over the life of a $400,000 loan, so time your lock strategically.
Use Short-Term ARMs For Short Holds
- Consider a short-term ARM if you plan to sell or refinance within the fixed period to access rates roughly ~1% lower.
- Weigh the refinancing risk at reset because rates could be much higher after the fixed term ends.
Maximize Credit Score And Down Payment
- Maintain a credit score above 740 and put 20% down to avoid PMI and access the best conventional rates.
- Pay upfront for better financing terms rather than relying on leverage immediately.