Can You Negotiate Mortgage Rates? | Lower Your Rate 2026

Yes, mortgage rates are negotiable, and borrowers who compare multiple offers often secure lower rates. Yet many home buyers and refinancers still accept the first quote they receive, missing out on potential savings.

Learning how to negotiate mortgage rates, gathering multiple quotes, and asking lenders to compete puts you back in control, and keeps more money in your pocket.

In this article (Skip to...)

• Negotiating mortgage rates
• Factors affecting mortgage rates
• Negotiating fees and closing costs
• Mortgage rate negotiation tactics
• FAQ

How to negotiate mortgage rates

Whether you’re a first-time home buyer looking for a new home or a homeowner who wants to refinance your current mortgage, mortgage rate negotiation is possible. However, it’s not as simple as haggling over percentage points. Learning how to negotiate mortgage rates involves understanding what factors impact your rate, such as your credit score, down payment, and loan type.

To negotiate a better mortgage rate, you’ll have to prove that you’re a creditworthy borrower. And you’ll have better luck if you come to the table with a lower quote from a different lender in hand.

Here are four strategies for how to negotiate mortgage rates before you lock:

1. Shop around with multiple lenders
2. Ask your lender to match lower interest rate offers
3. Negotiate with discount points
4. Strengthen your mortgage application

We cover each rate-negotiation strategy in more detail below.

But the rule of thumb is this: If you have strong personal finances, and you’re willing to get quotes from different lenders, you can usually negotiate a lower rate for your mortgage. The key is being proactive in your approach, knowing how to negotiate mortgage rates, and using your financial standing to secure a better deal.

Factors affecting mortgage rates

Negotiating your mortgage fees and closing costs

Your interest rate is a big part of how much your loan will cost, yet it’s not the only factor to consider when securing a mortgage. There are other upfront costs and fees that accompany it. You should plan to compare and negotiate these fees when you talk to lenders and third-party service providers.

Some are negotiable, while others are typically fixed. Let’s take a closer look at each category.

Negotiable fees

While this is not an exhaustive list of mortgage fees, these are among the most commonly negotiated costs found on your Loan Estimate.

• Loan underwriting or origination fee: Charged by lenders for processing new loan applications, this is usually one of the most substantial fees. It’s negotiable and varies from lender to lender
• Application fee: In certain cases, lenders impose a fee for submitting a mortgage application. However, it’s worth noting that this fee can sometimes be waived or reduced
• Points: These refer to prepaid interest on the loan, paid upfront to decrease the interest rate. The number of points you choose to purchase can be negotiated
• Title services: This covers the cost of title searches, title insurance, and attorney fees. You can often negotiate these costs and shop around for the best deal
• Home inspection and appraisal fees: When it comes to these services, you’re not bound to a single provider. You have the flexibility to explore options, potentially negotiating a lower price
• Real estate agent commission: There’s no law forcing your real estate agent to charge a 3% commission. Ask them to negotiate

Non-negotiable fees

While it’s generally not possible to negotiate the cost of these fees with a single lender, you have the option to compare and contrast them across different lenders. Here’s a closer look at some of these fees:

• Recording fees: These charges cover the legal recording of your new mortgage and title. They are unnegotiable and set by the city or county
• Property taxes: These are also set by your local government based on the assessed value of the property. Unfortunately, they are fixed and cannot be negotiated.
• Prepaid daily interest charges: If your closing falls within the middle of a month, your lender will collect interest from the closing date until the end of the month. This charge is calculated based on your interest rate and the loan balance, making it non-negotiable
• Credit report fees: These fees cover the cost of pulling your credit score and history
• Escrow fees: These are fees for the service of holding your deposit until the transaction is completed. You can sometimes negotiate these fees or choose a different escrow service.
• Mortgage insurance: Depending on the type of loan, you may pay various types of mortgage insurance premiums or guarantee fees, which are all non negotiable. For example, conventional loans charge private mortgage insurance (PMI) with down payments less than 20%.

Mortgage rate negotiation tactics for different types of borrowers

When it comes to a mortgage rate negotiation strategy, different types of borrowers may need to employ varying strategies. Here are some effective mortgage negotiation strategies for securing a better mortgage rate, tailored to specific borrower profiles:

First-time home buyers

As a first-time home buyer, you may lack experience but often have access to special programs. It’s important to remember that mortgage rate negotiation is possible, and knowing how to negotiate mortgage rates can save you money. Use these tactics when negotiating home loan terms:

1. Leverage first-time buyer programs. Many lenders offer special rates or terms for first-time buyers. Mention this status upfront and ask about available programs.
2. Highlight your potential. If you’re early in your career, emphasize your earning potential and job stability to negotiate better terms.
3. Bring a larger down payment. If you’ve saved a substantial down payment, use this as a negotiating point for a lower interest rate.
4. Consider an FHA loan. These often offer competitive rates for first-time buyers. Use FHA quotes to negotiate with conventional lenders.
5. Ask about rate buydowns. Inquire if the seller or lender can contribute to temporarily buying down your rate for the first few years.

Refinancing homeowners

Refinancing can be an excellent way to secure lower interest rates and reduce mortgage payment. Here are some tips for how to negotiate mortgage rates when refinancing:

1. Leverage your payment history. If you’ve been consistent with your current mortgage payments, use this as evidence of your reliability. A strong credit history can be a useful tool in mortgage rate negotiation.
2. Highlight increased home value. If your home has appreciated significantly, your loan-to-value ratio may have improved, potentially qualifying you for better rates.
3. Negotiate closing costs. Ask your current lender if they can offer a no-closing-cost refinance to earn your continued business.
4. Use competitor offers. Get quotes from multiple lenders and use these to negotiate with your preferred lender to secure lower mortgage interest rates.

High-credit-score borrowers

If you have a good credit score, you’re in a strong position for mortgage rate negotiation. Try these tactics:

1. Ask for their best rate upfront. Let lenders know you’re a strong borrower and expect their most competitive offer.
2. Negotiate lender fees. With a high credit score, you might be able to get certain lender fees reduced or waived.
3. Push for faster approval. Your strong credit profile might qualify you for expedited underwriting, which could save you money if rates are rising.
4. Explore relationship discounts. If you have substantial personal finances, ask if the lender offers rate discounts for opening a checking or savings account.

Negotiating with mortgage brokers

Working with a mortgage broker can be advantageous when trying to secure the best mortgage rates. Here’s how to negotiate mortgage rates:

1. Request multiple options. Have your broker present several loan offers from different lenders to compare.
2. Negotiate the broker's fee. While brokers often charge fees for their services, these may be negotiable, especially if you’re bringing a strong financial profile to the table.
3. Use competing offers. If you’ve received better offers elsewhere, share these with your broker to see if they can match or beat them.
4. Ask about lender-specific programs. Experienced brokers might know about special programs or promotions from certain lenders that you can leverage.
5. Leverage your debt-to-income ratio. If you’ve recently improved your DTI, make sure your broker is aware, as it could affect your purchase price range and potentially your rate.

FAQ: Mortgage rate negotiation