Q: How to get the best mortgage rate as a first-time buyer?
A: Focus on improving your credit score, saving for a bigger down payment, and comparing multiple lenders. First-time home buyer programs may also offer better terms.
Q: How to get the lowest mortgage rate with bad credit?
A: While your options may be limited, you can still improve your chances by increasing your down payment, paying off debt, applying with a co-borrower, or exploring government-backed loans like FHA. It’s also smart to work on improving your credit before applying.
Q: Does my employment status affect my mortgage rate?
A: Stable, verifiable income is key. Self-employed borrowers may need additional documentation to qualify for better rates.
Q: How to get best mortgage rate during a high-rate market?
A: Focus on improving your borrower profile and consider shorter loan terms or adjustable-rate options with lower introductory rates to get the best mortgage rate.
Q: Is refinancing worth it to get a better mortgage interest rate?
A: If current rates are significantly lower than your existing mortgage and you plan to stay in your home, refinancing can be a great move.
Q: How does the loan term affect the mortgage rate I get?
A: Shorter loan terms, like 15-year mortgages, typically come with lower interest rates compared to 30-year loans. However, your monthly payments may be higher, so it's important to choose a term that fits your budget.
Q: Does a larger down payment help me get a better mortgage rate?
A: Yes. A down payment of 20% or more not only helps you avoid private mortgage insurance (PMI) but also lowers the lender’s risk, often resulting in a better interest rate offer.
Q: Can I negotiate mortgage rates with lenders?
A: Yes. Especially if you have a strong financial profile, lenders may be willing to match or beat competing offers.
Q: How often do mortgage rates change?
A: Mortgage rates can change daily—or even multiple times a day—based on market conditions, inflation, bond yields, and Federal Reserve actions. That’s why it’s important to lock in your rate when you find a favorable one.
Q: Should I use a mortgage broker to find the best rate?
A: A good mortgage broker can help you shop around and access loan products from multiple lenders. Ask our Ken Berke Real Estate Team to save time and potentially get you a lower mortgage rate, but always compare broker fees and do your own research too.
Looking for more answers about the home buying or selling process? Check out our full list of Frequently Asked Questions.