The Easy Way to Lower Your Mortgage Rate

home expenses
Photo by Fertas /

Just as you can land a lower credit card rate by simply asking your credit card company for one, you might secure a better mortgage rate by asking the lender.

This tactic is one of multiple ways homeowners can lower their mortgage interest rate without having to refinance the debt, as the website The Truth About Mortgage recently reported.

Calling your mortgage lender and asking for a lower rate is both unconventional and uncommon, writes Colin Robertson, the former account executive for a wholesale mortgage lender who runs the site. Still, it works for some folks.

How to request a lower mortgage rate

Asking your mortgage lender for a better interest rate is technically as simple as picking up the phone.

There’s a hitch, though: Make it clear that you are not interested in refinancing the loan with the lender, Robertson notes. If the lender thinks refinancing might be an option, the company is liable to try to pursue that option with you.

Additionally, borrowers might have better luck asking and receiving in certain situations. They include:

  • The mortgage lender and mortgage servicer (the company that collects mortgage payments) are the same entity.
  • Your interest rate is much higher than current rates. A 30-year fixed-rate mortgage averaged 4.81 percent as of the week of Nov. 21, according to Freddie Mac data.

Of course, asking for a lower mortgage rate might simply get you a “no” in response. But as with credit card rates, you have nothing to lose — and potentially a lot of money to gain — by asking for a lower cost to borrow.

Securing a lower interest rate will decrease the total amount of interest you pay over the life of a debt.

Other ways to reduce mortgage interest costs

Refinancing a mortgage takes a bit more work than simply picking up the phone, but it’s an option worth considering if requesting a lower mortgage rate fails.

Use a free online resource like Money Talks News’ mortgage rate search tool to learn the types of rates for which you might qualify. The tool will give you customized rates based on factors such as your location and credit score.

Then, check out “Mortgage Rates at 8-Year High: How to Refinance Before It’s Too Late.”

If all else fails, though, remember that you can always make extra payments on your mortgage debt. This tactic can decrease the total amount of interest you pay over the life of the loan.

For more options, see “7 Painless Ways to Pay Off Your Mortgage Years Earlier.”

Have you or would you ever ask your mortgage lender for a lower rate? Share with us by commenting below or over on our Facebook page.

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Read Next
3 Cable TV Companies Hiking Prices for 2020
3 Cable TV Companies Hiking Prices for 2020

Still married to your cable company? Hold on to your wallet!

28 Things You Should Never Pay For — and How to Get Them for Free
28 Things You Should Never Pay For — and How to Get Them for Free

From entertainment to education, if you know the tricks, you can save big.

Watch This: Organize Your Home With Dollar Tree Products
Watch This: Organize Your Home With Dollar Tree Products

Here’s how to organize every corner of your home using only items from a dollar store.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started


Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.