How To Negotiate a Lower Mortgage Rate, According To Experts
Prospective homebuyers seeking ways to afford a mortgage might be wondering whether they can negotiate their mortgage rate.
Read on for details about negotiating mortgage rates, and if it's even possible.
Can You Negotiate Your Mortgage Rate?
Is it possible for prospective homebuyers to negotiate a lower rate?
"Rates are negotiable, to a point," said Renee Coleman, mortgage lender at CrossCountry Mortgage. "Lenders have certain rules that they must follow. They typically cannot give you a better rate than the next person. That said, there is some wiggle room allowed."
Here are more details on how to negotiate a lower mortgage rate.
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Clean Up Your Credit
Your interest rate depends on many factors -- and not all are related to market conditions. Your credit score, debt-to-income ratio, loan-to-value ratio, down payment, loan amount and even your region can affect your mortgage interest rate.
To put yourself in the best negotiating position, focus on the factors you can control, such as boosting your credit score by paying down debt and checking your credit reports for errors.
Shop Around
If you've been researching how to find a mortgage, you probably know that you need to shop around with multiple lenders. Don't be afraid to look for an independent mortgage broker who can help streamline that work.
"Working with an independent mortgage broker will give you more flexibility because they can shop multiple lenders for you to find a low rate and low cost," said Brian Green, senior loan advisor at Xpert Home Lending.
Ask for Concessions
A lower interest rate can save you tens of thousands of dollars over time. But as the market shifts to favor buyers, you can also think creatively and ask for concessions. In the first quarter of 2025, 44.4% of sellers agreed to concessions, according to a Redfin report.
"You can request a reduction in points, origination fees or even waiving the appraisal fee," Green said.
Ask for a Lower Rate
If you approach negotiations with the right attitude and come armed with knowledge, securing a lower rate could be as simple as asking.
"Being transparent that you plan on talking to multiple lenders before making a decision helps make sure each lender is putting their best foot forward," Green said. "Some lenders have a lot of mobility when setting pricing, so don't be afraid to ask if they can do better."
Compare APRs
If your lender says yes to a lower interest rate, make sure you know what that entails, Coleman advised. "If you simply ask your lender to match a rate to compete with another lender, they are likely to say 'yes' but may not tell you if you'd have to pay points," she said.
Points, or interest rate "buy downs," are upfront payments that lower your interest rate. You're paying the money at closing in exchange for savings on your monthly payment.
To determine the true cost of the mortgage, compare APRs to determine whether you are getting a deal. "If your interest rate is 6.5%, and the APR is 6.7%, that includes the cost to do the loan, including points. If someone else quotes you 6.5% and their APR is 7%, you know that this lender is charging you a lot more for your points," she explained.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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