How to secure a lower than average rate for your home mortgage

Even with mortgage rates going up the past two weeks, rates are still hovering around the lowest levels of 2014, with the national average at 4.23 percent. For those who qualify for FHA, VA or HARP loans, lower than average rates can typically be acquired.

Rates are expected to rise and fall weekly for the next few months according to experts, as the Federal Reserve has not given much information about its future plans. As rates continue to remain fairly low, it is a good time to look into refinancing to take advantage of potential savings. Freddie Mac estimates that homeowners are saving 31 percent on their monthly payments after refinancing.

If you have a high credit score, lower than average mortgage rates are available on conventional mortgages and refinances. Lenders are more willing to work with those with credit scores over 740 and lower loan-to-value (LTV) ratios.

But even if you don’t have perfect credit or lots of cash to use as a down payment and still want a discounted rate, FHA mortgages and refinances are available. Because these loans are insured by the federal government, they have rates that are around 0.25 percent lower than a similar conventional mortgage.

VA and USDA mortgage and refinance programs also offer lower rates, though they are only available to select home buyers who qualify. You can learn more by checking out the Best Rate USA home loan programs page. These programs are both backed by the government and give lenders an incentive to offer lower than average rates.