We know mortgage rates are higher these days, but don't let that scare you off.
There are still ways to snag a lower rate and save some serious cash. Here are six tips
to help you do just that.

1. Consider an ARM to score a lower mortgage rate

Ever heard of an adjustable-rate mortgage (ARM)? It's a bit different from the traditional fixed-rate loans. With an ARM, you start with a lower introductory rate for a set period (like five, seven, or ten years). After that, the rate adjusts based on market conditions. It might sound risky, but many people refinance before the adjustable period kicks in. ARMs are making a comeback, so they're worth a look if you're keen on a lower starting rate. And speaking of refinancing, have you
considered a cash-out refinance? Since mortgage interest rates are typically lower than other debts, it's a great way to consolidate or pay off debt.

2. Look for a temporary mortgage rate buydown

Did you know some sellers, builders, and even lenders can help lower your mortgage rate temporarily? It's called a rate buydown. For instance, with a "2-1" buydown, your rate could be 2% lower in the first year and 1% lower in the second year before settling at the original rate. It's a great way to ease into those mortgage payments. Just keep in mind that if rates don't drop as expected, you'll be stuck with the current higher rate unless you refinance. And when it comes to
refinancing, Quicken Loans is ready to help you explore your options!

3. VA and FHA loans offer lower mortgage rates

If you're a veteran, active service member, or part of their family, a VA loan might be your ticket to lower rates without needing a down payment. FHA loans, backed by the government, also tend to have lower rates than conventional loans. Plus, they offer lower down payment options, which can be a huge relief. And remember, if you're looking to consolidate debt or fund home improvements, a cash-out refinance could be the perfect solution.

4. Purchase mortgage points to lower your mortgage rate

Want to lower your interest rate? Consider buying mortgage points at closing. Each point costs about 1% of your loan amount and can reduce your rate by 0.25%. While it's a bigger upfront cost, it can save you money over the life of the loan. Just make sure you're planning to stay in the home long enough to make it worthwhile. And if you need help weighing your options, Quicken Loans is here to assist.

5. Make a larger down payment

Putting down more money upfront can lead to lower interest rates and make your offer more attractive to sellers. If you can swing a down payment of 10-20%, you'll likely be seen as a less risky investment by lenders, potentially scoring you a better rate. Plus, if you need to free up some cash, a cash-out refinance can help you achieve your financial goals, whether it's consolidating debt, improving your home, or even taking that long-awaited vacation.

6. Shorten loan terms

Opting for a shorter loan term, like 15 years instead of 30, can get you a lower interest rate. You'll pay off the loan faster and save on interest overall. The catch? Your monthly payments will be higher, but if you can handle that, it's a smart way to save in the long run. And if you ever need to adjust your finances, consider a cash-out refinance with Quicken Loans to consolidate or pay off other debts.