7 Best Ways to Save on Mortgages After Rates Drop to 6.7% in August 2025

Mortgage rates plummeted to 6.7% for a 30-year fixed-rate loan in the week ending August 7, 2025, the lowest since March 13, 2025 (6.62%), per Freddie Mac, driven by a weak July jobs report showing only 73,000 jobs added, far below expectations. This drop, spurred by revised job growth estimates and anticipation of a Federal Reserve rate cut in September 2025, offers a window for homebuyers and refinancers in the US, with insights for Ghana, Canada, and UK audiences tracking US trends. The best ways to save on mortgages can cut monthly payments by $100–$500 and save thousands long-term, leveraging high-CPC mortgage ads for site revenue. Here’s how to act now.

Why the Mortgage Rate Drop Matters

The July 2025 jobs report, showing 73,000 jobs added against a forecast of 100,000 and downward revisions of 258,000 jobs for May and June, signaled economic slowdown, pushing rates down from 6.87% the prior week. Investors now see a 95% chance of a Federal Reserve rate cut on September 17, 2025, per the CME FedWatch tool, as the Fed shifts focus from inflation to unemployment. This 6.7% rate, compared to 7.79% in October 2023, could save $4,000 annually on a $400,000 loan. The best ways to save on mortgages help US buyers and refinancers, plus international audiences monitoring US markets, capitalize on this dip.

7 Best Ways to Save on Mortgages in 2025

Here are seven actionable strategies to save on mortgages, with tips for US, Ghana, Canada, and UK audiences, based on rates, terms, and market trends.

1. Lock in a 6.7% Rate Now

• Why It Saves: Securing 6.7% before potential rate hikes saves $200/month on a $300,000 loan vs. 7.5%.
• How to Do It: Get pre-approved via Bankrate to lock rates for 30–60 days.
• Example: A US buyer saves $7,200 over 3 years on a $300,000 loan.
• Tip: In Ghana, compare US rates with local lenders like Ecobank for investment properties.
• Best for: US buyers acting fast.
• Resource: Explore SmartMoneyMint’s mortgage guide.

2. Refinance High-Rate Loans

• Why It Saves: Refinancing from 7.5% to 6.7% on a $400,000 loan saves $4,800/year.
• How to Do It: Apply via NerdWallet to compare refinance rates.
• Example: A US homeowner saves $14,400 over 3 years on a $400,000 loan.
• Tip: In Canada, assess US refinance options for vacation homes.
• Best for: US refinancers with 6.5%+ loans.

3. Opt for a 15-Year Mortgage

• Why It Saves: 15-year rates at 5.85% save $50,000 in interest vs. 30-year at 6.7% on a $300,000 loan.
• How to Do It: Choose a 15-year term via LendingTree.
• Example: A US buyer saves $1,000/year in interest with a shorter term.
• Tip: In the UK, compare with shorter-term loans for similar savings.
• Best for: US buyers with stable income.

4. Improve Your Credit Score

• Why It Saves: Boosting your score from 600 to 700 cuts rates by 0.5–1%, saving $3,000/year on a $400,000 loan.
• How to Do It: Pay down debt and check scores via Credit Karma.
• Example: A US borrower saves $9,000 over 3 years with a 0.75% rate drop.
• Tip: In Ghana, build credit with local banks for future US loans.
• Best for: US buyers with scores below 700.

5. Consider a Rate Buydown

• Why It Saves: Paying upfront to lower rates to 5.7% for 2 years saves $2,400/year on a $300,000 loan.
• How to Do It: Negotiate buydowns with lenders via Zillow.
• Example: A US buyer saves $4,800 over 2 years with a temporary buydown.
• Tip: In Canada, explore similar buydown options for US properties.
• Best for: US buyers with upfront cash.

6. Shop Multiple Lenders

• Why It Saves: Comparing rates across banks, credit unions, and online lenders saves 0.25–0.5%, or $1,500/year on a $400,000 loan.
• How to Do It: Get quotes from Freddie Mac partners and local banks.
• Example: A US borrower saves $4,500 over 3 years with a 0.3% lower rate.
• Tip: In the UK, use MoneySuperMarket for rate comparisons.
• Best for: US for rate optimization.

7. Buy in Fall for Less Competition

• Why It Saves: Fall’s slower market (6.4% more inventory, per RE/MAX) means negotiable prices, saving $5,000–$10,000.
• How to Do It: Work with a realtor via Realtor.com to negotiate in September–November.
• Example: A US buyer saves $7,000 on a $350,000 home with less bidding.
• Tip: In Ghana, monitor US market trends for investment opportunities.
• Best for: US first-time buyers.

Tools to Maximize Savings

• NerdWallet: Compare mortgage and refinance rates.
• Credit Karma: Track credit to qualify for lower rates.
• YNAB: Budget for mortgage payments.
• ChatGPT: Plan homebuying via x.ai.

Common Mistakes to Avoid

• Waiting for Lower Rates: Rates may not drop below 6.5% in 2025, per MBA forecasts, costing $1,000s in rent.
• Ignoring Fees: Avoid 1–2% origination fees to save $2,000–$4,000.
• Not Refinancing: Miss out on $4,800/year savings for high-rate loans.
• Overlooking Inventory: Fall’s 33.6% higher inventory boosts negotiating power.

Tips for Success in the US and Beyond

• US: Lock in 6.7% rates via Bankrate; refinance if above 6.5%.
• Ghana: Explore US investment properties with Ecobank’s guidance for expats.
• Canada/UK: Monitor US rates for vacation homes; compare via Ratehub or MoneySuperMarket.
• All Regions: Improve credit and shop lenders to save $1,000s.

Why the Best Ways to Save on Mortgages Work in 2025

The 6.7% rate drop, driven by a weak jobs report and Fed rate cut anticipation, saves $4,000–$7,000 annually on typical US loans. High-CPC mortgage ads boost site revenue, while these best ways to save on mortgages help US buyers and international investors in Ghana, Canada, and UK capitalize on affordability. A recession could lower rates and prices further, but risks unemployment, per Mike Chadwick. Act now to lock in savings.

Conclusion

The 7 best ways to save on mortgages in 2025—locking rates, refinancing, choosing 15-year terms, and more—empower US buyers to save $1,000s after rates hit 6.7%. Start with NerdWallet, budget via YNAB, and explore SmartMoneyMint’s mortgage guide to buy or refinance smarter!

DISCLAIMER: Mortgage rates (6.7% as of August 7, 2025) and terms vary by lender and credit profile. Confirm rates, fees, and eligibility before applying. Data subject to change.