3 Ways Homebuyers Can Lower Their Mortgage Rate in 2026
Mortgage rates have crossed the 7% mark again, and for many homebuyers, that can make the monthly payment feel like the biggest obstacle to buying a home.
But there's an important distinction that often gets lost when we talk about mortgage rates:
The rate you see in the headlines isn't necessarily the rate you'll personally receive.
According to new Realtor.com analysis of 2025 Freddie Mac loan data, mortgage rates varied by nearly a full percentage point among borrowers during a single month. The middle 80% of borrowers received rates ranging from 6.50% to 7.43% around a 7% benchmark.
That means buyers have more control over their borrowing costs than they may realize.
Realtor.com's research identified three major factors borrowers can influence:
Your credit score
Your down payment
The lender you choose
For buyers in Concord, Charlotte, Kannapolis, Harrisburg, and throughout the greater Charlotte area, understanding these three levers can help you approach today's mortgage market with a strategy instead of simply accepting whatever rate appears first.
Why Your Mortgage Rate Matters So Much
Even a relatively small difference in interest rate can change how much home you can comfortably afford.
Realtor.com's analysis found that for a buyer with a $2,000 monthly principal-and-interest budget, the spread between the rates received by the middle 80% of borrowers represented approximately $28,400 in purchasing power.
That's significant.
It means two buyers looking at the same $400,000 home could potentially have very different borrowing costs depending on their financial profile and mortgage shopping strategy.
And while no buyer can control the overall direction of mortgage rates, you can control some of the factors that influence your individual rate.
So let's look at the three areas that deserve your attention.
1. Your Credit Score Can Make a Difference
Your credit score is one of the factors lenders use when determining mortgage pricing.
Generally speaking, a stronger credit profile can help you qualify for more favorable loan terms.
But there's an important detail in Realtor.com's analysis: not every increase in your credit score has the same impact.
The research found that moving across certain credit-score thresholds can produce greater rate improvements than others.
For example, moving from a credit score of 680 to 720 was associated with an approximately 11-basis-point reduction in the mortgage rate, translating to about $3,200 in additional purchasing power for a buyer with a $2,000 monthly principal-and-interest budget.
A borrower who moves from below 640 to above 780 could see a larger improvement, with Realtor.com's analysis estimating more than $10,000 in additional purchasing power.
What Can Buyers Do?
If you're thinking about buying a home in the next several months, it's worth talking with a lender before you're ready to make an offer.
That gives you time to understand your credit profile and identify anything that could potentially be improved.
Depending on your situation, that could mean:
Paying down revolving debt
Making payments on time
Avoiding unnecessary new credit applications
Checking your credit reports for errors
Keeping credit card balances under control
Giving yourself time to improve your score before applying for a mortgage
One important caveat: Don't make major financial moves simply because you read an article online.
Talk to your lender first.
For example, paying off a credit card might be helpful in one situation, while preserving cash for your down payment or reserves could be more important in another.
Your lender can help you determine which move makes the most sense for your specific situation.
2. Your Down Payment Matters—But 20% Isn't a Magic Number
You've probably heard the advice:
"You need 20% down."
That's not necessarily true.
There are many mortgage programs that allow qualified buyers to purchase with less than 20% down.
And according to Realtor.com's latest analysis, the relationship between your down payment and your mortgage rate isn't quite as simple as "more money down equals a dramatically lower rate."
The research found that crossing the 10% down-payment threshold provided one of the more meaningful rate improvements for buyers putting less than 20% down. However, moving from 15% to 20% down had only a very small effect on the interest rate itself.
So why is 20% still important?
One major reason is private mortgage insurance (PMI).
For many conventional loans, putting 20% down can eliminate PMI, which can reduce the buyer's overall monthly housing expense.
That's different from getting a dramatically lower interest rate.
Don't Drain Your Savings Just to Hit 20%
This is something I think buyers should pay close attention to.
If you have $80,000 available for your purchase, it doesn't necessarily make sense to put every dollar toward the down payment just to reach a particular percentage.
You may need cash for:
Closing costs
Moving expenses
Inspections
Immediate repairs
Furniture and appliances
Home maintenance
Emergency savings
Having a lower mortgage payment is helpful.
But becoming a homeowner with essentially nothing left in savings can create a different financial problem.
The right down payment is the one that fits your overall financial picture—not necessarily the largest amount you can come up with.
3. Shop Your Mortgage Lender
This may be one of the easiest opportunities for buyers to overlook.
You shop for the house.
You compare neighborhoods.
You look at school districts, commute times, floor plans, kitchens, yards and garages.
But sometimes buyers don't shop their mortgage.
They simply use the first lender they speak with.
That's a mistake worth avoiding.
Realtor.com's analysis found that lender choice can produce meaningful differences in the rate a borrower receives. In the 2025 data analyzed, correspondent lenders and mortgage brokers generally priced loans about 5 to 6 basis points lower than traditional retail lenders.
The analysis also found that moving from a typical retail lender to a highly competitive lender could produce a rate difference of approximately 19 basis points, which translated to about $5,800 in additional purchasing power for a buyer with a $2,000 monthly principal-and-interest budget.
That's why getting multiple quotes can be worth your time.
But Don't Choose a Lender Based Only on the Lowest Rate
There's an important piece of this conversation that doesn't always show up in online mortgage comparisons.
The lowest advertised rate isn't necessarily the best loan.
A mortgage rate may come with different:
Points
Fees
Closing costs
Loan terms
Turnaround times
Requirements
Incentives
And in a real estate transaction, timing matters.
If you're under contract and your lender can't meet the required closing timeline, saving a small amount on your rate may not be worth the additional risk and stress.
Realtor.com also notes that borrowers should consider a lender's service and ability to close on time rather than simply chasing the lowest rate.
That's a conversation worth having with your lender before you start making offers.
What About Mortgage Rate Buydowns?
There's another tool buyers may encounter in today's market: rate buydowns.
A rate buydown can potentially lower your interest rate by using additional funds toward the cost of the mortgage.
Depending on the transaction, those funds could come from the buyer, seller, builder, or another permitted source.
This is particularly relevant in the current market because some sellers and builders are using financing incentives to make homes more affordable without making a large reduction to the purchase price.
For example, a new-construction builder might offer a preferred-lender incentive.
A seller might offer a concession that can be used toward eligible closing costs or a rate buydown.
These opportunities can change the math considerably.
That's why I encourage buyers to compare the entire financing package, rather than simply asking:
"What is the interest rate?"
A better question is:
"What will this loan actually cost me, and what will my monthly payment be?"
What Does This Mean for Charlotte and Concord Homebuyers?
For buyers in the Charlotte area, the current market creates an interesting situation.
Mortgage rates are putting pressure on affordability, but buyers also have more opportunities than they did during the extremely competitive markets of a few years ago.
That means you may have more time to shop, compare financing options and negotiate—but you still need to be strategic about the mortgage.
If you're looking at homes in Concord, Kannapolis, Harrisburg, Huntersville, Charlotte, or surrounding Cabarrus County communities, your options could include:
Resale homes
A resale home may give you more flexibility to negotiate with the seller, particularly if the property has been on the market for a while.
New construction
Builders may offer financing incentives, closing-cost assistance or rate buydowns through preferred lenders.
Seller concessions
Depending on the transaction and loan program, a seller may be able to contribute toward certain buyer costs.
Different loan programs
A lender can help you compare conventional, FHA, VA, USDA and other available financing options based on your circumstances.
The best strategy isn't necessarily to find the house with the lowest price.
It's to find the combination of home price + interest rate + financing terms + incentives + monthly payment that works for you.
Don't Let the 7% Headline Make the Decision for You
Seeing a mortgage rate above 7% can be discouraging.
But remember: 7% is a market headline, not necessarily your personal mortgage rate.
Your credit profile matters.
Your down payment matters.
The lender you choose matters.
The loan program matters.
The property matters.
And the terms you negotiate can matter, too.
Realtor.com's research found that the middle 80% of borrowers in its analysis received rates spanning nearly a full percentage point around the headline rate.
That is a pretty big range.
It means the conversation shouldn't stop at:
"Rates are over 7%, so I can't buy."
Instead, the conversation can be:
"What can I do to make the financing work for my situation?"
One More Thing: Don't Forget About the House Itself
There is one final piece of advice from the Realtor.com analysis that I think is particularly important.
Don't let the mortgage rate become so much of the focus that you forget about the actual home you're buying.
Interest rates can change.
Your home is a physical asset that you may own for years.
If you find the right home at a price you can comfortably afford, it may make sense to consider the purchase based on the overall transaction rather than waiting indefinitely for rates to reach a specific number.
That doesn't mean you should stretch your budget or assume rates will fall.
It means don't make your entire homebuying decision based on trying to perfectly time the mortgage market.
The Bottom Line
Mortgage rates have crossed 7% again, but buyers aren't completely powerless in the face of higher borrowing costs.
There are at least three areas worth focusing on:
1. Improve your credit profile when possible.
2. Choose a down payment that makes sense for your finances—not simply the largest amount you can afford.
3. Shop multiple lenders and compare the complete loan, not just the advertised rate.
Realtor.com's analysis suggests these factors can create meaningful differences in the rate and purchasing power available to individual borrowers.
For buyers in Concord, Charlotte, Kannapolis, Harrisburg, and throughout the greater Charlotte area, this is a good reminder that buying a home isn't simply about watching the mortgage-rate headline.
There are still decisions you can make.
There are still financing options to compare.
And there are still ways to structure a purchase around your individual budget.
If you're thinking about buying a home, I recommend starting the conversation with a lender early. The more you understand about your credit, down payment options and potential monthly payment, the more prepared you'll be when the right house comes along.
You don't have to control the mortgage market. You just need to understand the parts of the process that you can control.
This article is for educational purposes only and is not mortgage or financial advice. Mortgage rates, loan programs, fees, qualification requirements and available incentives vary. Always consult a licensed mortgage professional about your individual situation.
