How To Negotiate a Lower Mortgage Rate, According to Experts
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Prospective buyers seeking ways to afford a mortgage might be wondering whether they can negotiate their mortgage rate. Read on for more details about the current state of the housing market and mortgage rates, as well as how to negotiate a lower mortgage rate.
Rising mortgage rates and growing recession fears have slowed home sales this spring, in spite of sales typically ticking up as summer approaches. The latest National Association of Realtors Pending Home Sales Index, with data for April 2025, shows a 6.3% decline in pending home sales compared with March 2025. It's the biggest monthly drop since 2022, according to a report from HousingWire.
'Despite an increase in housing inventory, we are not seeing higher home sales,' NAR chief economist Lawrence Yun said in a public statement, per HousingWire. 'Lower mortgage rates are essential to bring home buyers back into the housing market.'
But is it possible for prospective homebuyers to negotiate a lower rate?
'Rates are negotiable, to a point,' said Renee Coleman, mortgage lender at CrossCountry Mortgage. 'Lenders have certain rules that they must follow. They typically cannot give you a better rate than the next person. That said, there is some wiggle room allowed.'
Here are more details on how to negotiate a lower mortgage rate.
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Your interest rate depends on many factors — and not all are related to market conditions. Your credit score, debt-to-income ratio, loan-to-value ratio, down payment, loan amount and even your region can affect your mortgage interest rate.
To put yourself in the best negotiating position, focus on the factors you can control, such as boosting your credit score by paying down debt and checking your credit reports for errors.
If you've been researching how to find a mortgage, you probably know that you need to shop around with multiple lenders. Don't be afraid to look for an independent mortgage broker who can help streamline that work.
'Working with an independent mortgage broker will give you more flexibility because they can shop multiple lenders for you to find a low rate and low cost,' said Brian Green, senior loan advisor at Xpert Home Lending.
A lower interest rate can save you tens of thousands of dollars over time. But as the market shifts to favor buyers, you can also think creatively and ask for concessions. In the first quarter of 2025, 44.4% of sellers agreed to concessions, according to a Redfin report.
'You can request a reduction in points, origination fees or even waiving the appraisal fee,' Green said.
If you approach negotiations with the right attitude and come armed with knowledge, securing a lower rate could be as simple as asking.
'Being transparent that you plan on talking to multiple lenders before making a decision helps make sure each lender is putting their best foot forward,' Green said. 'Some lenders have a lot of mobility when setting pricing, so don't be afraid to ask if they can do better.'
If your lender says yes to a lower interest rate, make sure you know what that entails, Coleman advised. 'If you simply ask your lender to match a rate to compete with another lender, they are likely to say 'yes' but may not tell you if you'd have to pay points,' she said.
Points, or interest rate 'buydowns,' are upfront payments that lower your interest rate. You're paying the money at closing in exchange for savings on your monthly payment.
To determine the true cost of the mortgage, compare APRs to determine whether you are getting a deal. 'If your interest rate is 6.5%, and the APR is 6.7%, that includes the cost to do the loan, including points. If someone else quotes you 6.5% and their APR is 7%, you know that this lender is charging you a lot more for your points,' she explained.
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