Technologies

Homebuyers Are Scoring 5% Mortgage Rates With These Simple Strategies

You don’t have to settle for high rates in 2025. Here’s how to cut your mortgage rate by 1% or more.

If you’re looking to buy a home, you probably know that housing affordability is in the dumps. Record-high prices and high mortgage rates are serving a double whammy to prospective buyers everywhere.

But mortgage rates aren’t set in stone. Although current rates are hovering near 7%, more borrowers are finding creative ways to snag rates below what lenders advertise. Last year, nearly half of buyers purchased a home at a rate below 5%, according to Zillow.

«With borrowing costs elevated, buyers can take steps to reduce their housing expenses by securing a lower mortgage rate,» said Hannah Jones, senior research analyst at Realtor.com.

The market forces that influence mortgage rates are out of your control. However, if you’re financially prepared and shop around, you can save up to 1.5% on your personalized rate. Optimizing your credit score, making a larger down payment and negotiating with multiple lenders could also help you unlock homeownership in 2025.

Even a 1% difference in your rate can translate to about 10% savings on your monthly mortgage payment and tens of thousands of dollars in savings over the course of your loan.

Here are several ways to reduce your mortgage rate.

1. Improve your credit score

If your credit needs work, consider taking steps to raise your credit score before applying for a mortgage.

Lenders look at your credit score to decide whether you qualify for a home loan and what interest rate you receive. FICO credit scores range from 300 to 850, with 850 being the best score possible. Higher credit scores show you’ve managed debt responsibly in the past so it lowers your risk to a lender. This can help you secure a lower interest rate and save big.

«The best mortgage rates and products are typically reserved for those with a credit score of 740 or better,» said Sarah DeFlorio, vice president of mortgage banking at William Raveis Mortgage.

According to a 2024 Lending Tree study, when borrowers moved from the «fair» credit score range (580 to 669) to the «very good» range (740 to 799), they shaved 0.22% percentage points off their interest rate. That rate difference helped borrowers save $16,677 over the lifetime of a home loan.

2. Increase your down payment

Your down payment is the amount of money you contribute to your home purchase upfront. Each type of home loan comes with a minimum down payment, usually ranging from zero to 5%, but a higher down payment means a cheaper interest rate. That’s because the lender takes on less risk when you contribute more toward the loan.

Because a down payment lowers your mortgage rate and builds your home equity, home loan experts often recommend making a large down payment of at least 20%.

3. Take out an adjustable-rate mortgage

An adjustable-rate mortgage, or ARM, is a home loan with a fixed rate for a set introductory period, such as five years. Once that period ends, the interest rate can go up or down in regular intervals for the remaining term.

The big appeal of ARMs is that the introductory interest rate is often lower than the rate on traditional mortgages. In general, the average 5/1 ARM rate is about 0.5% lower for the first several years than the average rate for 30-year fixed-rate mortgages.

4. Negotiate your mortgage rate

When you’re applying for mortgage loans, you don’t have to go with the company that did your preapproval. In fact, research shows that getting rate quotes from multiple lenders and comparing offers can result in significant savings.

If you want to use this strategy, start by submitting a mortgage application with lenders that fit your criteria. Once you have a few loan estimates in hand, use the best one to negotiate with the lender you want to work with.

The loan officer may lower your rate, help you save on closing costs or offer other incentives to get you onboard. In a 2023 LendingTree survey, 39% of homebuyers negotiated the interest rate on their most recent home purchase. Out of that pool of buyers, 80% were able to get a better deal.

5. Choose a shorter home loan term

Nearly 90% of homebuyers choose a 30-year fixed mortgage term because it offers the most flexibility and monthly payment affordability. Payments are lower because they’re stretched over a longer timeline, but you can always put more toward the principal here and there.

But when you take out a longer-term home loan, «you’re holding up the lender’s money, and there’s an opportunity cost for the funds to be invested elsewhere,» said Nicole Rueth, SVP of the Rueth Team Powered by Movement Mortgage.

Shorter loan terms, such as 10-year and 15-year mortgages and ARMs, have lower interest rates, so you can reduce your rate now.

Choosing a shorter repayment term could help you save money because you’ll be paying less in interest over the long term. But don’t make the homebuying mistake of choosing a shorter loan term just for the lower rate. Shorter loan terms mean you’ll have less time to repay the money you borrow, resulting in higher monthly payments, so it’s important to ensure they fit within your budget.

6. Buy mortgage points

A mortgage point, also known as a mortgage discount point, is an upfront fee you can pay the lender in exchange for a lower interest rate on your home loan.

Each point costs 1% of the purchase price of a home and usually knocks the rate down by 0.25%. On a $400,000 home, you’d pay $4,000 for one discount point. The lender may even allow you to buy four mortgage points to lower the rate from 7% to 6%, although you’d have to shell out $16,000 to get there.

To check whether this strategy is worthwhile, take the total cost of the points and compare it to the overall monthly savings. In this case, when you pay $16,000 to buy four points and save $210 per month, it would take you more than six years to reach your break-even point.

Some experts encourage putting any extra money you have toward a down payment instead of buying points. That’s because if you sell the home or refinance before reaching your break-even point, you lose money. But the amount you spent on your down payment becomes part of your equity.

7. Get a temporary mortgage rate buydown

A temporary mortgage rate buydown involves paying a fee at closing to lower your interest rate for the first few years of your loan term. Because of the considerable upfront cost, this strategy only makes financial sense when someone else pays that fee. Home builders, sellers and even some lenders may offer to cover this type of buydown to boost sales, especially when market rates are elevated.

For example, a lender may offer a «3-2-1» buydown, where the interest rate is slashed by 3 percentage points in the first year, 2 percentage points in the second year and 1 percentage point in the third. Starting in the fourth year, you pay the full rate for the rest of the loan term.

Buyers often choose a temporary buydown and plan to refinance later on. Your buydown funds are refundable and you can use them toward closing costs when you refinance (if rates do drop).

What is a ‘good’ mortgage rate?

The majority of US adults would consider purchasing a home if rates were to drop to 4% or below. Yet most mortgage forecasts don’t project average rates dipping below 6.5% this year.

In a historical sense, a good mortgage rate is generally at or below the national average. Since 1971, the 30-year fixed mortgage rate has averaged 7.72%, according to Freddie Mac. In the last year, average mortgage rates have mostly fluctuated between 6% and 7%.

Affordability is relative to your overall financial situation. And because mortgage rates can change daily and even hourly, the definition of a «good» rate can change quickly.

«What matters is the rate you can get today,» said Colin Robertson, founder of The Truth About Mortgage. According to Robertson, the only way to know if you’re getting a good deal is to speak with a few different lenders and brokers and then compare their quotes against the daily or weekly averages.

Buying a home is a personal decision so it should feel right for your situation and budget. As you shop for a home, consider multiple strategies to lower your rate. A mortgage calculator can help you estimate what you’d pay each month.

Read more: Still Chasing 2% Mortgage Rates? Here’s Why It’s Time to Let Them Go

Technologies

CNET Daily Tariff Price Tracker: I’m Watching 11 Key Products for Changes, Here’s What’s Happened

The deadline for the start of Trump’s heaviest tariffs has been delayed until next month, leaving consumers stuck with more uncertainty over prices.

For the last three months, tariffs have been a hot topic, leaving consumers and businesses alike worried: Will they hike prices and by how much? It’s a question more relevant than ever this week, as President Trump punts another major deadline down the road and price-slashing Amazon’s Prime Day sales wind down as the week ends.

Amid those worries, I’ve been tracking prices every day for 11 key products likely to be hit by tariff-induced price increases, and the answer I’ve come to so far is this: Not so much, at least not yet. The winding road of tariff inflation still stretches before us into an uncertain future, so the threat of price hikes continues to cloud the horizon.

To date, I’ve seen two noteworthy price increases, one for the Xbox Series X and the other for a popular budget-friendly 4K TV. Some other products — including Apple’s popular AirPods and printer ink — have gone on sale for brief periods.

CNET Tariff Tracker Index

Above, you can check out a chart with the average price of the 11 products included in this piece over the course of 2025. This will help give you a sense of the overall price changes and fluctuations going on. Further down, you’ll be able to check out charts for each individual product being tracked.

We’ll be updating this article regularly as prices change. It’s all in the name of helping you make sense of things, so be sure to check back every so often. For more, check out CNET’s guide to whether you should wait to make big purchases or buy them now and get expert tips about how to prepare for a recession.

Methodology

We’re checking prices daily and will update the article and the relevant charts right away to reflect any changes. The following charts show a single bullet point for each month, with the most recent one labeled «Now» and showing the current price. For the past months, we’ve gone with what was the most common price for each item in the given month.

In most cases, the price stats used in these graphs were pulled from Amazon using the historical price-tracker tool Keepa. For the iPhones, the prices come from Apple’s official materials and are based on the 128-gigabyte base model of the latest offering of the iPhone 16. For the Xbox Series X, the prices were sourced from Best Buy using the tool PriceTracker. If any of these products happen to be on sale at a given time, we’ll be sure to let you know and explain how those price drops differ from longer-term pricing trends that tariffs can cause.

The 11 products we’re tracking

Mostly what we’re tracking in this article are electronic devices and digital items that CNET covers in depth, like iPhones and affordable 4K TVs — along with a typical bag of coffee, a more humble product that isn’t produced in the US to any significant degree.

The products featured were chosen for a few reasons: Some of them are popular and/or affordable representatives for major consumer tech categories, like smartphones, TVs and game consoles. Others are meant to represent things that consumers might buy more frequently, like printer ink or coffee beans. Some products were chosen over others because they are likely more susceptible to tariffs. Some of these products have been reviewed by CNET or have been featured in some of our best lists.

iPhone 16, 128GB
Duracell AA batteries, 24-pack
Samsung DU7200 65-inch TV
Xbox Series X
Apple AirPods Pro 2 with USB-C case
HP 962 CMY Printer Ink
Anker 10,000-mAh, 30-watt power bank
Bose TV speaker
Oral-B Pro 1000 electric toothbrush
Lenovo IdeaPad Flex 5i Chromebook, 256GB
Starbucks 28-ounce ground dark roast coffee

Below, we’ll get into more about each individual product, and stick around till the end for a rundown of some other products worth noting.

iPhone 16

The iPhone is the most popular smartphone brand in the US, so this was a clear priority for price tracking. The iPhone has also emerged as a major focal point for conversations about tariffs, given its popularity and its susceptibility to import taxes because of its overseas production, largely in China. Trump has reportedly been fixated on the idea that the iPhone can and should be manufactured in the US, an idea that experts have dismissed as a fantasy. Estimates have also suggested that a US-made iPhone would cost as much as $3,500.

Something to note about this graph: The price listed is the one you’ll see if you buy your phone through a major carrier. If you, say, buy direct from Apple or Best Buy without a carrier involved, you’ll be charged an extra $30, so in some places, you might see the list price of the standard iPhone 16 listed as $830.

Apple’s been taking a few steps to protect its prices in the face of these tariffs, flying in bulk shipments of product before they took effect and planning to move production for the US market from China to India. A new Reuters report found that a staggering 97% of iPhones imported from the latter country, March through May, were bound for the US. This latter move drew the anger of Trump again, threatening the company with a 25% tariff if they didn’t move production to the US, an idea CEO Tim Cook has repeatedly shot down in the past. This came after Trump gave a tariff exemption to electronic devices including smartphones, so the future of that move seems in doubt now.

Duracell AA batteries

A lot of the tech products in your home might boast a rechargeable energy source but individual batteries are still an everyday essential and I can tell you from experience that as soon as you forget about them, you’ll be needing to restock. The Duracell AAs we’re tracking are some of the bestselling batteries on Amazon.

Samsung DU7200 TV

Alongside smartphones, televisions are some of the most popular tech products out there, even if they’re an infrequent purchase. This particular product is a popular entry-level 4K TV and was CNET’s pick for best overall budget TV for 2025. Unlike a lot of tech products that have key supply lines in China, Samsung is a South Korean company, so it might have some measure of tariff resistance.

After spending most of 2025 hovering around $400, this item has now seen some notable upticks on Amazon, most recently sitting around $450. This could potentially be in reaction to Trump’s announcement of 25% tariffs against South Korea this week.

Xbox Series X

Video game software and hardware are a market segment expected to be hit hard by the Trump tariffs. Microsoft’s Xbox is the first console brand to see price hikes — the company cited «market conditions» along with the rising cost of development. Most notably, this included an increase in the price of the flagship Xbox Series X, up from $500 to $600. Numerous Xbox accessories also were affected and the company also said that «certain» games will eventually see a price hike from $70 to $80.

Initially, we were tracking the price of the much more popular Nintendo Switch as a representative of the gaming market. Nintendo has not yet hiked the price of its handheld-console hybrid and stressed that the $450 price tag of the upcoming Switch 2 has not yet been inflated because of tariffs. Sony, meanwhile, has so far only increased prices on its PlayStation hardware in markets outside the US.

AirPods Pro 2

The latest iteration of Apple’s wildly popular true-wireless earbuds are here to represent the headphone market. Much to the chagrin of the audiophiles out there, a quick look at sales charts on Amazon shows you just how much the brand dominates all headphone sales. For most of the year, they’ve hovered around $199, but ahead of Prime Day sales this week they are currently on sale for $149.

HP 962 CMY printer ink

This HP printer ink includes cyan, magenta and yellow all in one product and recently saw its price jump from around $72 — where it stayed for most of 2025 — to $80, which is around its highest price over the last five years. We will be keeping tabs to see if this is a long-term change or a brief uptick.

This product replaced Overture PLA Filament for 3D printers in this piece, but we’re still tracking that item.

Anker 10,000-mAh, 30-watt power bank

Anker’s accessories are perennially popular in the tech space and the company has already announced that some of its products will get more expensive as a direct result of tariffs. This specific product has also been featured in some of CNET’s lists of the best portable chargers.

Bose TV speaker

Soundbars have become important purchases, given the often iffy quality of the speakers built into TVs. While not the biggest or the best offering in the space, the Bose TV Speaker is one of the more affordable soundbar options out there, especially hailing from a brand as popular as Bose. You can currently get this model at a healthy discount for Prime Day, down to $200 from $280.

Oral-B Pro 1000 electric toothbrush

They might be a lot more expensive than their traditional counterparts but electric toothbrushes remain a popular choice for consumers because of how well they get the job done. I know my dentist won’t let up on how much I need one. This particular Oral-B offering was CNET’s overall choice for the best electric toothbrush for 2025.

While this product hasn’t seen its price budge one way or another most of the year, there is a $10 coupon listed on Amazon right now.

Lenovo IdeaPad Flex 5i Chromebook

Lenovo is notable among the big laptop manufacturers for being a Chinese company making its products especially susceptible to Trump’s tariffs.

Starbucks Ground Coffee (28-ounce bag)

Coffee is included in this tracker because of its ubiquity —I’m certainly drinking too much of it these days —and because it’s uniquely susceptible to Trump’s tariff agenda. Famously, coffee beans can only be grown within a certain distance from Earth’s equator, a tropical span largely outside the US and known as the «Coffee Belt.»

Hawaii is the only part of the US that can produce coffee beans, with data from USAFacts showing that 11.5 million pounds were harvested there in the 2022-23 season — little more than a drop in the mug, as the US consumed 282 times that amount of coffee during that period. Making matters worse, Hawaiian coffee production has declined in the past few years.

All that to say: Americans get almost all of their coffee from overseas, making it one of the most likely products to see price hikes from tariffs.

Other products

As mentioned, we occasionally swap out products with different ones that undergo notable price shifts. Here are some things no longer featured above, but that we’re still keeping an eye on:

Nintendo Switch: The baseline handheld-console hybrid has held steady around $299 most places — including Amazon — since it released in 2017. Whether that price will be affected by tariffs or the release of the Switch 2 remains to be seen. This product was replaced above with the Xbox Series X.
Overture PLA 3D printer filament: This is a popular choice on Amazon for the material needed to run 3D printers. It has held steady around $15 on Amazon all year. This product was replaced above by the HP 962 printer ink.

Here are some products we also wanted to single out that haven’t been featured with a graph yet:

Razer Blade 18 (2025), 5070 Ti edition: The latest revision of Razer’s largest gaming laptop saw a $300 price bump recently, with the base model featured an RTX 5070 Ti graphics card now priced at $3,500 ahead of launch, compared to the $3,200 price announced in February. While Razer has stayed mum about the reasoning, it did previously suspend direct sales to the US as Trump’s tariff plans were ramping up in April.
Asus ROG Ally X: The premium version of Asus’s Steam Deck competitor handheld gaming PC recently saw a price hike from $799 to $899, coinciding with the announcement of the company’s upcoming Xbox-branded Ally handhelds.

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Technologies

Today’s NYT Strands Hints, Answers and Help for July 12 #496

Here are hints and answers for the NYT Strands puzzle for July 12 No. 496.

Looking for the most recent Strands answer? Click here for our daily Strands hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections and Connections: Sports Edition puzzles.

If you love attending baseball games in summer, you’ll hit a home run with today’s NYT Strands puzzle. If you need hints and answers, read on.

I go into depth about the rules for Strands in this story.

If you’re looking for today’s Wordle, Connections and Mini Crossword answers, you can visit CNET’s NYT puzzle hints page.

Read more: NYT Connections Turns 1: These Are the 5 Toughest Puzzles So Far

Hint for today’s Strands puzzle

Today’s Strands theme is: In the ballpark.

If that doesn’t help you, here’s a clue: Play ball!

Clue words to unlock in-game hints

Your goal is to find hidden words that fit the puzzle’s theme. If you’re stuck, find any words you can. Every time you find three words of four letters or more, Strands will reveal one of the theme words. These are the words I used to get those hints but any words of four or more letters that you find will work:

TEER, MEER, MEET, TEEM, ROAD, STALL, TALL, BEST, PEAT, LUNH, CULT, BUMP, BILE, PEAL, METE, BULL, STUN, NUTS

Answers for today’s Strands puzzle

These are the answers that tie into the theme. The goal of the puzzle is to find them all, including the spangram, a theme word that reaches from one side of the puzzle to the other. When you have all of them (I originally thought there were always eight but learned that the number can vary), every letter on the board will be used. Here are the nonspangram answers: