With interest rates at historic lows over the past few years, homeowners across the board jumped on the refinancing bandwagon in order to get better rates and lower payments. But refinancing isn’t the only way to lower your mortgage. And if you’re a new buyer just looking into obtaining a mortgage, there are ways to get a lower mortgage rate from the start.

Here are a few tips to keep in mind if you’re looking to decrease your mortgage—or for anyone who’s knee-deep in the process of searching for the best mortgage to fit their needs.

Switch Commitment. You may have thought a 15-year mortgage was the best option when you first bought your home, but perhaps circumstances have changed and it no longer makes sense. In that case, transfer your mortgage to a 30-year mortgage and you will be greatly decreasing the amount of your mortgage payment each month. While you may be paying more in the long run, odds are you’ll be selling your home before the 30-year period is up anyway, so it makes sense if you need the money now.

Lower Your PMI. Earlier this year, the Federal Housing Administration announced that all FHA loans would have lower rates, resulting in more than two million FHA homeowners saving roughly $900 a year by refinancing. In addition, the U.S. Department of Housing and Urban Development released a report that showed that the lower PMI will result in 250,000 home purchases for first-time homebuyers.

Say Goodbye to Your PMI. Rather than lowering your PMI, why not get rid of it altogether? This is something that most people don’t realize can be done, but now that housing prices are increasing, if you’ve been in your home for at least two years and its value has gone up, check with your lender to see if this is a possibility.

Buy Down Your Rate. When first getting a mortgage, you have the option to lower your rate with more of a down payment. Typically, a buyer can purchase one discount point for one percent of the cost of the mortgage. Not only will this add up to lower mortgage payments each month, it’ll also add up to some serious change by the end of the loan.

Ask Your Lender to Work With You. Contact your lender and let them know that you’re shopping for a lower homeowners insurance premium and inquire if there’s anything they can do. It might seem crazy, but lenders may lower your rate without you even having to refinance—especially if you’re a good customer who has never missed a payment. This might just be a temporary solution, with the rate being reevaluated, but it’s a great idea for those who need to lower their payment quickly.

For more tips on lowering your mortgage rate, contact our office today.