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How to lower your mortgage rate in 2017

Tricks for the rising interest rate environment

Mortgage rates on the rise, and have been for the last nine weeks, as evidenced by the latest data from Freddie Mac.

And with the Federal Open Market Committee recently announcing an increase in the federal funds rate, for the just the second time in 10 years, odds are that interest rates aren’t going to go back down any time soon.

So what are prospective buyers supposed to do in the face of a rising rate environment?

Over at CNBC, Diana Olick has a good primer on what to do, featuring one of HousingWire’s favorites, Julian Hebron, the executive vice president of sales and marketing at RPM Mortgage, and a good follow on Twitter at @TheBasisPoint.

Here’s a sample of Olick’s article:

For the average buyer who was thinking about getting into a new home last summer, but didn't, the monthly payment on that same home is now considerably higher. There is, however, a way to lower it by buying down the rate.

"Buying your rate down, or 'paying points,' means you're paying an extra fee on top of standard loan fees like appraisal, underwriting and a credit report to get a lower rate," said Julian Hebron, executive vice president of sales and marketing at RPM Mortgage.

"If you were getting a 30-year fixed loan of $325,000, you might get two options with and without points. Today the option with zero points might show the rate as 4.25 percent, and the option with 1 percent in points — equal to $3,250 — might show the rate as 4 percent," said Hebron. "Paying $3,250 at closing to lower your rate by .25 percent lowers your payment $42 per month, and lowers your interest cost $68 per month.

Click here or below for more tips on lowering your mortgage rate in 2017.

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