So average mortgage rates are lower and lower. I.e. X-year mortgage rates are 4%.

Lets assume I have a greater than average credit score and credit history, greater than average net worth, greater than average income, very low % credit utilization on existing credit.

How deep a discount on the average mortgage rate could I likely get? Can I be looking at 2% mortgage rate, or 3.5% mortgage rate, etc?

What other factors should I consider? I keep track of my credit information meticulously. I never considered real estate, but the rates are so low now that it is catching my attention.


If you have excellent credit, you will get the advertised rate. I don't know if a lender would go below the advertised rate. Lenders advertise the best rate they can offer.

  • (FWIW, it's a bit different here in Canada. A discount to posted rates can often be negotiated. ) – Chris W. Rea Sep 29 '11 at 18:51

The advertised rate is the best rate. That's how they get attention. If you have a lower than mid-700 score, your rate goes up from there.

One thing that concerns me - are you looking to buy a home to live in or an investment (rental) property? I ask because you used the term "real estate." I don't mean to split hairs, but when people are looking to live in a house, I usually hear them say "buying a house" or "buying a home." For me, and maybe just me, the term 'real estate' implies an investment property. To which I'd warn, don't let the interest rate tail wag the investing dog. It might be a good time to buy, but there's no certainty. And there's more to rental property than a simple matter of buying at the right time.

  • Not as an investment to "flip" per say, but the cheap prices coupled with favorable tax credits/deductions, coupled with the access to capital and leverage FURTHER coupled with the almost appealing low interest rates has got my attention. I'm not looking to close on anything, just asking a question – CQM Sep 29 '11 at 17:22
  • @CQM Joe's advice is good - beware about what you assume may be deductible, if you are thinking "investment property". The IRS rules say only homes you live in at least part of the year qualify for the mortgage interest tax deduction. – Nicole Sep 30 '11 at 2:41

Another thing to consider is lender credits OR points. The lender can pay you to take a higher rate or you can pay them to get a lower rate. When the lender pays you, it helps pay for closing costs and this is how you get a no-fee refi. If many people have been buying the lower rate and you are not willing to then in fact you may not get the low advertised rate.

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