Homebuyers Can Beat the Headline Mortgage Rate by Shopping, Saving and Strengthening Credit

Jake Krimmel, Senior economist at Realtor.com

“Mortgage-rate headlines matter, but they are not the whole story. Our report finds that borrowers' actual rates vary widely even within the same month, and that the gap between a typical outcome and a strong one can translate into tens of thousands of dollars in purchasing power. A buyer's credit profile, down payment and lender choice all help determine where they land within that range.”

Jake Krimmel, Senior economist at Realtor.com

“Buyers who have time before they plan to purchase should focus on the credit-score thresholds that matter most, especially 700 and 720. Improving a score can take planning, but even a move from the high 600s to 720 can improve the rate a buyer is likely to receive and expand the home budget available to them.”

Jake Krimmel, Senior economist at Realtor.com

“Twenty percent down is still an important financial benchmark because it ends mortgage insurance, but buyers should not assume it produces a large rate drop on its own. The right target depends on the buyer's full financial picture: how much cash they need to preserve after closing, the monthly cost of mortgage insurance and the rate benefit from additional money down.”

Jake Krimmel, Senior economist at Realtor.com

“For buyers who are ready to move now, comparison shopping is the clearest opportunity. A strong lender offer can be worth roughly twice as much as moving from a 690 to a 720 credit score, and it is available immediately for buyers who are able to search. Buyers should seek multiple loan estimates, compare the full terms—not just the advertised rate—and give themselves enough time to choose the lender that best fits their needs.”