How do I get a lower mortgage rate?

Your mortgage rate is driven by your credit score, loan-to-value ratio, loan type, and how aggressively you shop. Borrowers who compare at least three lenders and lock at the right time typically save thousands over the life of the loan. Paying discount points can buy the rate down further if you plan to stay long enough for the savings to offset the upfront cost.

There is no single lever that cuts your mortgage rate — it is the product of several variables you control. The CFPB's mortgage rate guide identifies credit score, down payment, loan term, loan type, and lender competition as the five biggest drivers. Work as many of them as possible before you apply.

Strengthen your application before you apply

Raise your credit score. Even moving from 679 to 680 can cross a lender pricing tier. Pay down revolving balances below 30% utilization and dispute errors on your credit report 3-6 months before applying.
Increase your down payment. A loan-to-value ratio below 80% eliminates PMI and often earns a better rate. Every additional 5% of equity can improve pricing.
Lower your debt-to-income (DTI) ratio. Most conventional lenders want DTI at or below 43%. Paying off a car loan or credit card before applying directly improves your pricing tier.
Choose the right loan term. 15-year mortgages carry lower rates than 30-year loans — though monthly payments are higher. Price both and model the break-even.

Shop aggressively and use points strategically

The CFPB consistently finds that borrowers who get multiple loan estimates save money. Request Loan Estimates from at least three lenders on the same day so you are comparing apples to apples — rates shift daily. Use the CFPB Loan Estimate explainer to read each line correctly. Also consider discount points: one point equals 1% of the loan amount and typically reduces the rate by 0.25%. Check current point pricing in your CFPB rate explorer and calculate the break-even month.

Lock your rate at the right time

Once you have a signed purchase agreement, ask your lender about a rate lock. Locks typically run 30, 45, or 60 days. Longer locks cost more. If rates are rising, lock immediately; if rates are falling, some lenders offer a float-down option for a fee. Never let a lock expire without asking the lender to extend — expired locks usually reset to current (often higher) market rates.

Mortgage rate facts

Borrowers with credit scores of 760 or above typically receive the lowest conventional mortgage rate tier offered by most lenders. — CFPB — Factors affecting your mortgage rate
The FHFA conforming loan limit for 2025 is $806,500 for a single-unit property in most of the U.S. — loans above that limit are jumbo and carry different rate pricing. — FHFA — Conforming Loan Limits
Multiple mortgage credit inquiries made within a 14-to-45 day window are typically counted as a single inquiry by FICO and VantageScore models, so rate shopping does not meaningfully hurt your credit score. — CFPB — Does applying for a mortgage hurt your credit?

Key takeaways

A credit score of 740+ and a DTI below 36% place you in the best conventional rate tiers.
Get Loan Estimates from at least three lenders on the same day — small rate differences add up to tens of thousands of dollars over 30 years.
Discount points make sense if you will keep the loan long enough to recoup the upfront cost; calculate your break-even month before paying.
A rate lock protects you from market moves between application and closing — ask your lender about float-down options if rates are declining.
Verify current conforming loan limits and rate benchmarks at fhfa.gov and consumerfinance.gov, as both figures change annually.