5 Ways to Shop for a Low Mortgage Rate

Increase your down payment

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To qualify for the lowest rates on a conventional loan backed by Fannie Mae or Freddie Mac — the nation’s two largest mortgage buyers — you’ll need a 20% down payment

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Raise your credit score

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Generally, consumers need a FICO score of 760 or higher to be eligible for the lowest mortgage rates on a conforming loan

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Shop around

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Nearly half of consumers get only a single quote when applying for a mortgage, the Consumer Financial Protection Bureau reports. But you’re more likely to find a lower rate if you shop around

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Consider an adjustable-rate mortgage

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ARMs — short for adjustable-rate mortgages — developed a bad reputation after the housing market crashed in 2008 because so many underqualified borrowers couldn’t keep up with their ARM payment increases

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Lock In the Best Rate

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Qualified for a great interest rate? A mortgage rate lock allows you to lock it in for a set period — typically 30, 45 or 60 days — from the time you receive a conditional loan offer from a lender to when you close on a home.

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