Have you noticed the recent changes in mortgage rates? Some days they dip slightly, only to rise again the next. While it may seem unpredictable, this kind of movement is normal during times of economic transition. If you’re considering buying a home, this environment might seem uncertain—but there’s good news. Even though you can’t control where rates go next, you can still take meaningful steps to position yourself wisely in today’s market.

Take a look at the graph below. Using data from Mortgage News Daily, it illustrates how mortgage rates remained fairly steady in March but started shifting more rapidly throughout April:

This kind of fluctuation isn’t unusual and reflects ongoing economic changes. Instead of trying to time the market perfectly—a strategy even experts find challenging—focus on what you can influence right now. There are proactive steps you can take to ensure you’re in the best possible position when you decide to buy.

Here are three things you can control that will help you secure a better mortgage rate:

Your Credit Score

Your credit score plays a major role in the rate you’ll qualify for. Even a small improvement can lead to significant savings on your monthly mortgage payment. As Bankrate explains:

“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”

Maintaining a strong credit score is one of the best ways to ensure you’re offered favorable mortgage terms. If you’re unsure of your current score or how to improve it, a trusted loan officer can provide guidance to help you boost it effectively.

Your Loan Type

There are several types of mortgage loans to choose from, and each one has unique eligibility requirements and rate structures. According to the Consumer Financial Protection Bureau (CFPB):

“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose. Talking to multiple lenders can help you better understand all of the options available to you.”

Working with a knowledgeable mortgage professional can help you navigate these options and select the loan type that best fits your financial situation and future goals.

Your Loan Term

Just like the loan type, the length of your loan—or loan term—can also impact your rate and overall payment structure. As Freddie Mac puts it:

“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”

Most conventional loans come in 15, 20, or 30-year options. Choosing the right term can help you find a comfortable monthly payment while managing long-term interest costs. Be sure to discuss your options with your loan officer to determine what works best for your financial strategy.

Bottom Line

While mortgage rate fluctuations can seem daunting, they don’t have to derail your home buying plans. By taking control of your credit score, loan type, and loan term, you can better position yourself to secure a strong mortgage rate no matter what the market does.

To learn more about your options and how to prepare for a successful home purchase, reach out to Mike Panza and the team at Panza Home Group. They’re here to guide you every step of the way. For more information, visit: https://panzarealestate.com/team/mike-panza"