6 Ways Home Buyers Can Save on Their Mortgage
By: Melissa Dittmann Tracey
With rates around 7%, home buyers are feeling the financial squeeze. Here are a few secrets to ensuring they get the best deal they can on their home loan.
Couple asking for loan
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Although mortgage rates, which have been hovering near 7% over the last few weeks, are expected to fall in the second half of the year, home buyers have adjusted to higher borrowing costs and home prices. Still, affordability is a big issue: 60% of U.S. cities saw gains in home prices in the second quarter, according to data from the National Association of REALTORS®. And the median monthly mortgage payment for a typical existing single-family home is $2,234, factoring in this week's 7.09% average mortgage rate.

However, there are ways buyers can save on their home mortgage. Home Buyers are eligible for the lowest mortgage rates from lenders when they come with a stellar credit score, particularly above 740. But there are additional ways to save, including:

1. Shop around for a loan. Gathering multiple mortgage rate quotes from lenders can pay off. The average borrower could save $84,301 over the life of their loan by shopping around for a mortgage. Broken down further, borrowers could save $2,810 a year and $234 a month.

Borrowers who receive two rate offers from different lenders could save an average of $35,377 over the life of their loan, click Learn More