How do I get the lowest mortgage rate? 8 tips you can use.

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Mortgage rates have been slowly rising over the past seven months, from just below 6% before the Middle East conflict began in late February to near 7% this week (with some surveys reporting rates already above 7%).

However, it's still possible to lock in a rate below the national average. Borrowers need to shop diligently and deploy one or more of the following strategies to earn the lowest mortgage rate possible in the 2026 housing market .

Which lenders offer the lowest mortgage rates?

Analysis by Yahoo Finance of nearly 5,000 mortgage lenders reporting 2026 loan information under the Home Mortgage Disclosure Act reveals the surprising truth: the lenders offering the absolute lowest mortgage rates. In 2026, the largest national banks, credit unions, and homebuilders that finance their own construction offered the most favorable home loan rates to the widest variety of borrowers.

Since mortgage rates are constantly changing, and each lender's rate varies, securing the lowest mortgage rate requires some research. The most important factors are credit score, debt-to-income ratio, and the down payment.

With that information, it's time to contact lenders. With two or three lenders vying for the business, apply for preapproval with each and get a more exact mortgage rate estimate.

However, if buying new construction from a lender offering a buydown isn't an option, here are eight strategies to get the lowest mortgage rates — all while using a reputable, well-known mortgage lender .

How to get the lowest mortgage interest rate

You may already know that mortgage rates vary by credit score . Whenever you boost your credit score from a lower to a higher tier, you save money.

For example, the entry-level FICO Score of 620 might earn you an annual percentage rate, or APR, of 7.28% (based on mortgage rates as of early February, with the purchase of one discount point). Raise your score to the next credit band of 640 to 659, and your interest rate could improve to 7.10%.

Bigger rate discounts are offered as you climb the credit score ladder. Here are the interest rate breaks as shown by MyFico.com's Loan Savings Calculator :

The amount of recurring monthly debt you carry when applying for a mortgage is another significant factor in the interest rate you'll earn. The more debt, the higher your mortgage rate.

To get the lowest mortgage rate, aim for a DTI of 25% or less. To calculate your debt-to-income ratio , divide your total monthly debt by your monthly income before withholdings. For example, say you need $700 for monthly rent, $300 for a vehicle loan, and $100 in student loan payments. That's $1,100. With a monthly gross income of $5,000, your DTI is 22%.

You're in the pocket for a lower mortgage rate. Mortgage lenders may consider DTIs up to 50%, but prefer 35% or less — and the lowest mortgage rates go to borrowers with DTIs of 25% or less.

Another best practice for getting the lowest mortgage rate is to make as much of a down payment as you comfortably can. While you can get a home loan with as little as 3% down, paying more up front will earn you a lower mortgage rate.

For first-time home buyers , the median down payment was 10% in 2025, according to the National Association of REALTORS®.

Prepaying interest to lower your ongoing mortgage rate, called buying discount points , gains popularity in times of higher interest rates.

Buying one point equals 1% of the loan amount and will generally reduce your interest rate by about one-quarter of a percentage point. Any number of points can be purchased and applied in fractional amounts too.

However, it's a good idea to calculate the up-front cost of buying points and compare that with the discount you receive on your long-term interest rate. Other factors to consider in this calculation include how long you expect to live in the home and your down payment.

Lenders sometimes add a point or two to a mortgage proposal to make their offered interest rate appear more enticing. But remember, you're actually paying for the discount with an up-front fee.

When shopping for a loan, compare loan offers with zero points. Then, you can decide how many points to buy, if any, to lower your interest rate.

Tap the growing wave of seller concessions

Nearly half of home sellers offered concessions to buyers in May 2026, according to Redfin. Those incentives can include mortgage-rate buydowns, closing-cost credits, and lower listing prices.

That was the highest share of seller concessions ever offered during a May real estate market.

If mortgage rates are near 7% and you want to get below 6%, you'll need four to five discount points. (Remember, each point you buy reduces your interest rate by approximately a quarter point.)

For example, one point on a $300,000 mortgage would equal $3,000. If you want to purchase five points, you'll likely pay $15,000. (Or get the seller to chip in with those seller concessions.)

You will want to discuss your point-buying strategy with your lender to ensure it gets your long-term loan rate to your target.

Borrowers can lower their mortgage interest rate for the first few years of the loan term with a buydown. Home builders, sellers, and some lenders sometimes offer an interest rate buydown to boost sales. However, it is a rare option among mortgage lenders.

For national mortgage lenders with buydown programs, check out Guild Mortgage and AmeriHome Mortgage .

For example, a buydown might lower your interest rate from 6% to 5.5% for two years. It can be a good deal if the company offering the buydown isn't making it up with fees somewhere else.

While you get a short-term break on the interest rate, your payments and total interest may actually be higher over the long term. Buying down your interest rate is a strategy that requires running the numbers on the long-term benefits.

If you're interested in a buydown, compare a mortgage both with and without a buydown. Lenders will qualify you based on the permanent interest rate, not the temporary buydown rate. Finally, be prepared for your monthly payment to rise at the end of the buydown's discount period.

A mortgage product that increases in popularity whenever rates begin to rise is back: the adjustable-rate mortgage .

ARMs have a fixed interest rate for an introductory period, often three to 10 years, and then the rate changes regularly, usually once or twice a year. Tips when shopping for an ARM:

Look for an introductory rate that is lower than a fixed-rate mortgage.

Choose a term you feel comfortable with, perhaps in line with how long you plan to stay in the home.

Ensure you budget for potential increases in your monthly payment if the interest rate rises after the introductory fixed-rate period ends.

In the past, it was common to find ARMs with introductory rates well below the prevailing long-term fixed interest rate. An ARM could be a good idea today , but the intro rate isn't always lower anymore. You'll have to shop diligently — and bravely negotiate.

Are you looking for an interest rate that never changes and allows you to build home equity faster? Consider a shorter-term loan. Mortgages with 20- or 15-year fixed terms, as opposed to the traditional 30-year term, typically come with lower interest rates.

However, since the term is shorter, monthly payments tend to be higher.

An assumable mortgage allows you to take over the remaining payments of an existing home loan. You would likely make a lump sum payment to the current owner to cover the value of any equity or for a profit. That would require you to have the needed cash on hand or perhaps get a loan.

As tempting as it might be to pick up a low-interest-rate assumable loan, most conventional mortgages aren't eligible. That means you would need to find a seller with an FHA, VA, or USDA loan.

Can you get a lower interest rate on your mortgage?

Recently, home loan interest rates have been in the mid- to upper-6% range. Many (68.6%) of existing homeowners have a mortgage rate below 5%, and over half (51.5%) have a rate below 4%, according to Realtor.com. So, refinancing is not an option for many homeowners right now.

However, owning a home is a long-term commitment, and mortgage rates are very cyclical. Just because mortgage rates are above historic lows doesn't mean a refinancing opportunity will not present itself some years down the road.

After you move in, keep an eye on interest rates. Look for a dip of about 1% to 2% below your current mortgage rate before refinancing. Just remember — there will be refinance closing costs , and you need to decide if your goal is to lower your monthly payment or to pay off your home sooner.

The lowest mortgage rate ever on a 30-year loan was 2.65% in January 2021, according to Freddie Mac. It takes dramatic and systemic financial stress to shock mortgage rates to such a low level. COVID-19 was just that. Some 15 months later, mortgage rates were up to 5%.

Will mortgage rates ever drop back to 3%?

Never say never — but it's unlikely that mortgage rates will go back down to 3% . A drastic event (like the COVID-19 pandemic) would have to occur again for rates to drop this low.

What is the lowest mortgage rate out there right now?

According to Zillow, the lowest mortgage rate right now is 5.65% for a 15-year fixed-rate VA loan . This is closely trailed by 5.75% on a 5/1 adjustable-rate VA loan.

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