Mortgage rates have stayed stubbornly above 6% for months, and most forecasts say that’s not changing soon. Still, your mortgage rate isn’t set in stone—it depends on your loan type, credit, and timing. With the right strategies, you can secure a mortgage rate under 6% and save thousands over time. Here are eight proven ways to lower your mortgage rate and keep more money in your pocket.
Why Your Mortgage Rate Is Not Fixed
Understanding Personalized Mortgage Rates
If you are a foreign investor looking to buy property in the United States, the mortgage process can feel overwhelming. Rates you see in the news are averages, not guarantees. Your actual rate depends on factors like your credit profile, loan type, loan term, and the lender you choose. That means there is real room to negotiate and plan strategically.
At Nadlan Capital Group, we work with foreign nationals and U.S.-based investors every day to find financing solutions that fit their goals. Whether you are purchasing your first U.S. property or refinancing an existing one, there are clear, actionable steps you can take to get closer to a mortgage rate under 6%.
Let us walk through eight of the most effective strategies for mortgage savings that can make a real difference.
Eight Strategies to Get a Mortgage Rate Under 6%
1. Choose Government-Backed Loans
One of the most straightforward ways to lower mortgage rates is to look beyond conventional loans. Government-backed loans, such as VA, FHA, and USDA loans, are insured by the federal government. Because lenders take on less risk with these products, they often offer lower interest rates compared to standard conventional loans.
To put this in perspective, on December 16, 2025, the average 30-year fixed rate on conventional loans sat at 6.29%. On the same day, VA loans averaged 5.90% and FHA loans averaged 5.88%. On a $400,000 loan balance, choosing an FHA loan over a conventional one could save you roughly $38,000 in total interest over 30 years.
That said, government-backed loans come with their own costs. FHA loans require mortgage insurance premiums, both at closing and as part of your monthly payment. VA loans carry an upfront funding fee. The key is to calculate the full annual percentage rate, which accounts for both the interest rate and all associated fees, so you can make a true apples-to-apples comparison. A knowledgeable loan officer can help you run those numbers.
2. Opt for a Shorter Loan Term
Another proven approach among strategies for mortgage savings is choosing a shorter loan term. Lenders typically charge lower interest rates on 15-year loans than on 30-year loans, because the shorter repayment window reduces their exposure to risk.
As of December 16, 2025, the average rate on a 30-year conventional loan was 6.29%, while the 15-year conventional loan averaged just 5.76%. That is a difference of 53 basis points. On a $400,000 loan, that gap translates to nearly $300,000 in long-term interest savings.
The trade-off is a higher monthly payment. On a $400,000 loan, a 30-year term would produce a monthly payment of roughly $2,473, while a 15-year term would push that payment to about $3,324. Before choosing this route, make sure your monthly cash flow can comfortably support the higher payment. Missing payments puts your property at risk of foreclosure, which is the last outcome any investor wants.
3. Buy Discount Points
Discount points are a practical tool that lets you pay a fee at closing in exchange for a permanently lower interest rate. Generally, one point costs 1% of your loan amount and reduces your rate by about 0.25%. On a $400,000 loan, one point would cost $4,000 and could bring your rate from 6.22% down to 5.97%, which is a mortgage rate under 6%.
You can also purchase fractions of a point if your upfront budget is limited.
The benefit of discount points is that the rate reduction lasts for the life of the loan. The question is whether you plan to hold the property long enough to recoup the upfront cost. You can find your break-even point by dividing the cost of the points by your monthly savings. For example, if points cost $4,000 and save you $50 per month, you break even at month 80, which is about 6.5 years. If you plan to sell or refinance before that point, buying discount points may not make financial sense.
4. Ask About a Temporary Buydown
A temporary buydown is similar to discount points, but instead of reducing your rate permanently, it lowers your rate for a set number of years at the start of the loan. One popular option is the 3-2-1 buydown, which reduces your rate by 3% in year one, 2% in year two, and 1% in year three. After that, the rate returns to the original quoted rate.
Temporary buydowns can be funded by the borrower, the lender, the seller, or other parties involved in the transaction. When interest rates are elevated, some lenders offer buydowns as an incentive to attract borrowers.
This strategy can be a smart move if you expect your income to grow over time or if you anticipate refinancing before the buydown period ends. Just be sure you are financially prepared for the higher payment once the buydown expires.
5. Improve Your Credit Score
Your credit score is one of the most significant factors lenders use to determine your mortgage rate. Borrowers with higher scores are seen as lower-risk, and lenders reward that with better rates.
Data from Intercontinental Exchange shows that from September through December 2025, borrowers with a credit score of 780 received an average 30-year mortgage rate of 6.14%. Borrowers with scores below 680 averaged 6.59%. While neither of those figures is below 6%, the difference between them adds up to thousands of dollars over the life of a loan.
To improve your credit score before applying for a mortgage, focus on paying down existing debt, making all payments on time, and avoiding new credit inquiries in the months leading up to your application. For foreign investors who may not yet have an established U.S. credit history, working with a lender experienced in foreign national financing is especially important. Nadlan Capital Group specializes in exactly this kind of situation.
6. Shop Around for the Right Lender
Not all lenders offer the same rates, even to the same borrower with the same financial profile. Shopping around and comparing multiple offers is one of the simplest ways to lower mortgage rates without changing anything else about your financial situation.
Research from Freddie Mac shows that getting just four rate quotes can save a borrower more than $1,200 per year in interest. Even two quotes can save up to $600 annually. To protect your credit score during this process, submit all your applications within a two-week window. Credit bureaus typically count multiple mortgage inquiries made within that period as a single inquiry, which minimizes the impact on your score.
Working with a mortgage broker or a firm like Nadlan Capital Group gives you access to multiple lenders at once, which makes the comparison process far more manageable, especially if you are navigating the U.S. mortgage market from abroad.
7. Consider Adjustable-Rate Mortgages
Adjustable-rate mortgages, commonly known as ARMs, often start with lower interest rates than fixed-rate loans. According to ICE data from December 2025, 7/6 ARMs carried rates that were 34 basis points lower than 30-year fixed-rate mortgages. That lower rate applies for the initial fixed period, which in the case of a 7/6 ARM is the first seven years.
After that initial period, the rate adjusts periodically based on a market index, which means your payment could go up or down. Adjustable-rate mortgages tend to work well for investors who plan to sell the property or refinance before the rate adjusts. If you are purchasing a property with a defined exit strategy or a shorter hold period, an ARM could help you access a mortgage rate under 6% without committing to a fixed higher rate for 30 years.
That said, if you plan to hold the property long-term and your rate adjusts upward significantly, the initial savings could be wiped out. Make sure your investment plan accounts for that possibility.
8. Wait for the Right Moment
Sometimes the best strategy is patience. Mortgage rates move in cycles, and there is a reasonable chance they will fall below 6% at some point in the future. Fannie Mae projected in its November 2025 Housing Forecast that 30-year rates could reach 5.9% by the end of 2026.
That said, the Mortgage Bankers Association does not predict sub-6% rates at any point in 2026 or 2027. Forecasts vary, and no one can time the market with certainty. Waiting too long also has its own costs. Every month you delay purchasing a property is a month you are not building equity. Real estate prices may also rise in the interim, which could offset any savings from a lower rate.
If you can afford to buy now and the property makes financial sense at current rates, it may be worth moving forward rather than waiting for a rate that may or may not materialize on your timeline.
Frequently Asked Questions About Getting a Mortgage Rate Under 6%
Can You Get a Mortgage Rate Under 6% Right Now?
Yes, it is possible, even though average rates are currently above 6%. By combining strategies such as choosing the right loan type, buying discount points, opting for a shorter term, or using a temporary buydown, some borrowers are able to secure a rate below that threshold. Your individual financial profile plays a big role in what you can qualify for.
Will Mortgage Rates Drop Below 6%?
Most experts do not expect average rates to fall below 6% in the near term. Fannie Mae projects an average of 5.9% by the end of 2026, but other organizations like the Mortgage Bankers Association are less optimistic. The honest answer is that no one knows for certain, which is why having a solid strategy matters more than waiting for the perfect rate.
Is a 5% Mortgage Rate Realistic?
A 5% rate is achievable, but it typically requires a combination of factors working in your favor. Choosing a short-term or adjustable-rate loan, purchasing discount points, or securing a temporary buydown could get you to that level. On a standard 30-year fixed loan in today’s market, a 5% rate would be very difficult to obtain without significant rate reduction strategies in place.
How Nadlan Capital Group Can Help
Navigating the U.S. mortgage market as a foreign investor comes with unique challenges. Many lenders are not set up to work with borrowers who do not have a U.S. Social Security number, a domestic credit history, or income reported on U.S. tax returns. That is where Nadlan Capital Group stands apart.
We have deep experience helping foreign nationals secure financing for U.S. real estate, and we are here to walk you through every step of the process. From identifying the right loan type to comparing lender offers and structuring your financing for the best possible rate, our team is committed to being the trusted advisor you need in your corner.
If you are ready to take the next step toward securing a mortgage rate under 6%, reach out to Nadlan Capital Group today. We are here to help you make smart, informed decisions with confidence.