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How to get a mortgage interest rate below 6% now
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Mortgage interest rates hit their highest point since 2000 one year ago this week. And they rose even higher by the end of 2023, hovering near 8% for 30-year mortgage loans. But as inflation dropped from over 9% in June 2022 to under 3% now, cuts to the federal funds rate and, thus mortgage interest rates, appear increasingly likely. But with the average mortgage interest rate around 6.50% right now – more than double what it was a few years ago – homebuyers may be looking for ways to get a rate even lower, and preferably below 6%, if they can.
Fortunately, there are multiple ways to do so, some of which can be combined to form an actionable plan. But buyers will need to do some calculations and be aggressive to get a mortgage interest rate below 6% right now. Below, we’ll detail three steps they should consider taking to do so.
Start by seeing what mortgage interest rate you could lock in online now.
How to get a mortgage interest rate below 6% now
Want to secure a mortgage interest rate in the 5% range now? Then consider taking these three steps:
Buy mortgage points
If you’ve been looking around for mortgage rates lately, chances are you may have already found a rate or two below 6%. But many lenders advertise available rates by incorporating mortgage points upfront. To get that rate below 6%, then, you’ll need to pay this fee. These can cost 1% of the total mortgage amount, but could be valuable for a homebuyer looking to secure the lowest rate possible right now. Just be sure to weigh the potential savings versus those that may be available in a few months or a year (approximately) by refinancing instead.
Learn more about buying mortgage points online here.
Consider an adjustable-rate mortgage
If you choose an adjustable-rate mortgage with a 3/1 framework, in which the rate stays the same for the first three years and then becomes variable and changes once per year after, you can secure a rate of 5.90% now, according to Bankrate. While a variable rate — even though it won’t change for years — isn’t necessarily desirable, it could be a smart way to proceed in today’s economy.
Not only will this option allow you to secure a below 6% rate now, but it’ll expire when rates are likely to be lower across the board than they are now (if current projections hold). This will allow you to save money now — and again when you refinance to the prevailing, lower rate in three years.
Boost your credit score
It’s vital to remember that the lowest rates — whether advertised or quoted via an online marketplace — are reserved for those borrowers with the cleanest credit profiles and highest credit scores. To greatly improve your chances of securing a rate below 6%, then, make sure to boost your credit score as high as possible. This will take time but dramatic efforts (like paying off high-interest debt) can go a long way toward raising your score. So do as much as you can right now otherwise you’ll continue getting stuck with an above-average rate, no matter how far the rate climate eventually drops in the months ahead.
The bottom line
If you’re looking for a mortgage rate below 6% now, multiple avenues can help you get there. You’ll just need to be strategic in your approach. This involves buying mortgage points, considering an adjustable-rate mortgage, and boosting your credit score – or a combination of those tactics. It also means taking the time to shop around for lenders to find one offering the lowest rates and fees now. But the mortgage interest rate climate is changing and you’ll want to be able to take advantage when it does, so start working on these strategies now to improve your chances of getting a mortgage interest rate below 6% as soon as possible.
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Renad Atallah is an unlikely internet sensation: a 10-year-old chef, with a repertoire of simple recipes, cooking in war-torn Gaza. She has nearly a million followers on Instagram, who’ve witnessed her delight as she unpacks parcels of food aid.
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We interviewed Renad via satellite, though we were just 50 miles away, in Tel Aviv. [Israel doesn’t allow outside journalists into Gaza, except on brief trips with the country’s military.]
“There are a lot of dishes I’d like to cook, but the ingredients aren’t available in the market,” Renad told us. “Milk used to be easy to buy, but now it’s become very expensive.”
I asked, “How does it feel when so many people like your internet videos?”
“All the comments were positive,” she said. “When I’m feeling tired or sad and I want something to cheer me up, I read the comments.”
We sent a local camera crew to Renad’s home as she made Ful, a traditional Middle Eastern bean stew. Her older sister Noorhan says they never expected the videos to go viral. “Amazing food,” Noorhan said, who added that her sibling made her “very surprised!”
After more than a year of war, the Gaza Strip lies in ruins. Nearly everyone has been displaced from their homes. The United Nations says close to two million people are experiencing critical levels of hunger.
Hamada Shaqoura is another chef showing the outside world how Gazans are getting by, relying on food from aid packages, and cooking with a single gas burner in a tent.
Shaqoura also volunteers with the charity Watermelon Relief, which makes sweet treats for Gaza’s children.
In his videos online, Shaqoura always appears very serious. Asked why, he replied, “The situation does not call for smiling. What you see on screen will never show you how hard life is here.”
Before dawn one recent morning in Israel, we watched the UN’s World Food Program load nearly two dozen trucks with flour, headed across the border. The problem is not a lack of food; the problem is getting the food into the Gaza Strip, and into the hands of those who desperately need it.
The UN has repeatedly accused Israel of obstructing aid deliveries to Gaza. Israel’s government denies that, and claims that Hamas is hijacking aid.
“For all the actors that are on the ground, let the humanitarians do their work,” said Antoine Renard, the World Food Program’s director in the Palestinian territories.
I asked, “Some people might see these two chefs and think, well, they’re cooking, they have food.”
“They have food, but they don’t have the right food; they’re trying to accommodate with anything that they can find,” Renard said.
Even in our darkest hour, food can bring comfort. But for many in Gaza, there’s only the anxiety of not knowing where they’ll find their next meal.
For more info:
Story produced by Mikaela Bufano. Editor: Carol Ross.
See also:
“Sunday Morning” 2024 “Food Issue” recipe index
Delicious menu suggestions from top chefs, cookbook authors, food writers, restaurateurs, and the editors of Food & Wine magazine.
