How to Get a Lower Mortgage Rate in Nashville

Rates have climbed, but buyers still have real ways to bring theirs down. We walk through three of them, including a lender program that helps with your costs.

The Fed raised its benchmark rate in September 2026. 

That move doesn’t directly change mortgage rates, but they've climbed alongside it, and as of October, they’re the highest we’ve seen all year, and the highest in a couple of years. 

Even back when rates were in the 6s, buyers kept asking us the same question: how do we lower our interest rate? So let’s answer it.

First, a reality check on what “normal” actually is. Our own home sits at an interest rate under 3%, and that was insanity, not a benchmark. That number won't come back unless something goes very wrong in the economy. Rates in the sevens, where we are now, are an average, historically normal real estate interest rate. 

That doesn’t mean a seven fits your budget or the monthly payment you want, which is exactly why it’s worth knowing three ways that you can do to bring it down.

1. Your credit score does a lot of the heavy lifting. The first lever is the one most in your control. The higher your credit score, the more a bank trusts that you’ll pay them back, and the more favorable the rate they’ll offer. If you put real work into raising your score before you buy, that effort can translate directly into a better rate. It’s rarely the exciting answer, but it’s one of the most reliable.

“A rate in the sevens is normal. It still doesn’t have to be the rate you settle for.”

2. Compare lenders, and lean on your agent’s relationships. This is one of the least talked-about advantages of working with an excellent agent: the lender relationships we’ve already built. Right now we’re working with four or five lenders on programs that might match you, including a preferred lender we’ve partnered with for a decade. She has a grant available that puts $10,000 to $15,000 toward your closing costs, your down payment, or buying down your rate. We’ve also got local banks offering fixed rates in the 5s right now, and another with 5%-7% fixed for seven years, which can meaningfully lower your payment. 

The catch is knowing which lenders to call and whether you qualify. Some of these programs carry income restrictions, but don’t count yourself out too fast; you may be able to earn six figures and still qualify for that down payment assistance. Ask good questions, and talk to lenders who have actually been vetted.

Make sure your lender can actually get you to closing. This is the part buyers forget. No matter how attractive the rate, if your lender can’t get the loan underwritten and across the finish line, the rate is meaningless, because you won’t close. A great rate from a lender who can’t perform is worse than a solid rate from one who can. Vet for competence, not just the number on the quote.

3. Increasing your down payment is the third lever. Not everyone can put more down, but if you can save aggressively and come in with a larger down payment, you reduce the bank’s risk because they’re lending less, which can earn you a better rate. And that mentioned grant comes back into play: you can apply that $10,000 to $15,000 directly to your down payment and look even stronger on your qualification.

It would be lovely to see 3% again, but think about what that would actually require: widespread job losses, another global crisis. Nobody should be rooting for that. What we can root for is getting you the best available options, comparing the right products, and building the credentials that make banks glad to lend to you. 

If you have questions about buying, want to get connected with one of those lenders, or want to learn more about these programs, call or text us at 615-315-9223, email us at homes@fykesgroup.com, or visit fykesrealtygroup.com. Let’s find the option that fits you.