How to Negotiate the Lowest Home Mortgage Rates: 3 Best Practices

Posted by Rick Delgado on Thursday, April 3rd, 2014 at 8:36am.

With spring upon us, many families are thinking about buying a new house while their kids are out of school.  Mortgage rates are still hovering around the lowest they have ever been, at around 4.25% for a 30 year fixed rate.  If you are thinking about buying, here are some tips that can help you obtain the best mortgage rates.

Credit Score: Improve and Protect your Credit Score

Before applying for a home loan, make sure you obtain a credit report from one of the major credit reporting bureaus, TransUnion, Equifax, or Experian, and closely review it.  Unfortunately, a credit score is one of the first thing a lender will look at to qualify your application and rate, so having a good credit score will help you get the best rates.  On average, any score above 720 will qualify you for the best rate. 

Some suggestions to improving and maintaining your credit score:

  1. Correct any mistakes on your credit report as soon as you see them
  2. Pay bills on time
  3. Don’t apply for too much credit in a short amount of time
  4. Pay off any large outstanding credit, but don’t close down your accounts.  Lenders like to see credit history

Find a Reputable Lender

Finding a good lender who will work hard for you is very important to not only getting the best rate, but also to make sure everything goes smoothly until closing.  Shop around for rates, but don’t just go with the best rates- do your due diligence to make sure you are working with a reputable lender. 

Down Payment: More is Better

Although you can get a mortgage with just 5% down, saving up and putting a 20% down payment is better if you want the best rate and save money down the line.  If you apply for a mortgage with less than 20% down, you are required to purchase PMI insurance, which would cost you about $50 to $100 a month extra on top of your monthly mortgage payment. 

If you are looking to buy and would like to speak to someone about your options, contact Rick Delgado with RE/MAX Gold at 916-226-1136 or visit for more information.


Rick Delgado

Wonder what your home is worth in today's market? Quickly find out by clicking here. If you'd like help selling your home, please contact Rick Delgado today.

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