A decline in mortgage rates is good news for buyers, but there are ways to get an even better deal on your loan.
The dream of homeownership has felt out of reach for many Americans in recent years. Between the , and , a lack of affordability priced many would-be homebuyers out of the market — and many remain on the sidelines today. However, it appears that things may finally be changing for the better.
This week, mortgage rates hit their lowest point in 15 months, according to Freddie Mac, with the average rate for a 30-year fixed-rate mortgage dropping to 6.47%, down from 6.73% the week prior. This decline in comes after weaker-than-expected employment data increased the possibility of the Fed soon.
But while the decline in mortgage rates is certainly good news for buyers and homeowners looking to refinance, there may be ways to sweeten the deal even further by securing possible.
Ready to start shopping for a home? Find the best mortgage rates available to you here now.How to get a low mortgage interest rate now
If you want to secure the lowest mortgage rate possible right now, these strategies could help: Buy mortgage points
, also known as discount points, is one simple strategy you can use to effectively lower your rate. While it varies by lender, each point you buy of your total loan amount and can reduce your rate by about 0.25%.
While this strategy requires a larger upfront investment, it can lead to , especially if you plan to stay in the home for many years. To determine if this is the right move for you, calculate the break-even point (the time it takes for the monthly savings to recoup the cost of buying points).
