As someone who’s been following this market closely, I know elevated mortgage rates can feel overwhelming. But here’s a key takeaway I want you to hear first: you’re not powerless. There are strategies — many within your control — that can cut your mortgage rate, lower your payments, and make homeownership more achievable, even in a tough rate environment.

How Homebuyers Can Navigate High Mortgage Rates and Stay in Control

According to Realtor.com’s chief economist Danielle Hale, homebuyers have a surprising amount of power when it comes to their mortgage rate — if they’re willing to put in some effort. At a National Association of Realtors legislative meeting on June 3, Hale explained that simply shopping around for a mortgage could cut nearly 0.86 percentage points off the rate. Furthermore, improving credit, adding to a downpayment, or eliminating debt can all produce additional small drops — adding up to big savings in the long run.

My Take — 4 Ways Buyers Have More Control Than They Realize

Shopping Around May Be Your Best Move

I’ve seen this first hand: borrowing from the first lender you find is often a huge missed opportunity. Hale’s data shows you can cut nearly 0.86 points off your mortgage just by comparison shopping — that’s a dramatic drop when mortgage rates are sitting at about 7%. That kind of reduction could translate into thousands in annual payments and tens of thousands over the life of your mortgage.

Boost Your Credit Score — It Adds Up

It’s not glamorous, but improving your credit score by paying bills on time and reducing balances can lower your mortgage rate by about 0.39 points. That might seem small, but it’s a powerful move when you combine it with other strategies.

Bring a Higher Down Payment

If you’re able to put more down — say, move from 5% to 20% — lenders view you as less risky, which can cut your rate by nearly 0.18 points. It’s a win for both you and your lender, and it drops your future payments immediately.

Eliminate Debt Where Possible

Reducing your debt — especially high-risk, high-balance debt — signals financial stability and can affect your mortgage pricing. Although this tactic might cut your rate by only 0.05 points, it’s a piece of the puzzle that adds up when combined with the other strategies.

Reader Guidance — Here’s What You Should Do Now

If you’re a homebuyer, start by:

• Shopping around: Contact at least 3-4 lenders. Small differences in rate quotes can translate into huge savings.
• Boosting your credit: Pay bills on time and lower your utilization — the closer you can get to a score above 720, the better.
• Reducing debt: If you’re close to paying off a car or credit card, consider wiping it clean to cut your mortgage rate just a bit more.
• Higher downpayment: If you have a bit more cash available, adding it to your downpayment can pay off in lower payments for years to come.

Quick Q&A 

What are rate-lowering strategies for home buyers?

These are steps you can take to cut your mortgage’s interest rate — and your eventual payments. They include shopping around for the best rate, improving your credit score, putting more money down, and reducing your debt. Each tactic might cut your rate by a small amount — but together, the effects add up.

Tech-Driven Solutions That Could Help

Some online platforms allow you to compare mortgage quotes instantly from multiple lenders, or track your credit score and payments to maximize your financial profile. If you’re unsure where to start, a mortgage comparison tool can be a helpful first step.

Reader Q&A 

How much can these strategies collectively cut my mortgage rate?

 Depending on your financial profile and effort, you might cut up to 1.5 points off your mortgage rate dropping it from 7% to nearly 5.5%. That’s a huge saving over 30 years.

Should I pursue all strategies at once or prioritize some first?

Start by shopping around and improving your credit score, then consider adding a bigger downpayment and reducing your debt. It’s a powerful combination.

Are these strategies viable for first-time buyers with limited funds?

Yes — you’re not powerless just because you’re a first-time buyer. Small moves, like improving your credit or paying off a small balance, can make a measurable difference.