|
Four Quick Tips On How To Lower Your Mortgage Interest Rate
By: Gus Benson
Lowering your mortgage interest rate
Are you buying a new home? I don't care if it's a condo or a house, youwill end
up spending a lot of money. For most people it's going to bethe single largest
business deal of their life. To keep expenses incheck it is extremely important
to try and secure the very bestmortgage rate possible. There is a number of
things you can do to loweryour mortgage rate, and right now is an excellent time
because of thelow interest rates.
Tip number one - let lenders compete
Banks and mortgage brokers are in business to lend you money. If your
creditrecord is in order and you have a steady paycheck coming in you are aprime
candidate for a home loan, and banks will bid under each other tooffer you a
loan. The trick is to let them know you are an informedcustomer looking for the
very best interest rate, and that you are alsolooking at what other banks have
to offer. Don't just go to yourregular bank, shop around!
Tip number two - get your interest rate offer in writing
Right, so you have approached several different banks to try and secure a
lowinterest rate for your new home loan. As soon as one of these
financialinstitutions have pre-screened you and are ready to offer you a
loan,get them to put the interest rate they will extend to you in writing.With
this interest rate locked in, you can now get back to all theother banks you are
talking to and tell them: "If you can't match a5.25% interest rate, we have
nothing to talk about."
Tip number three - don't compare apples and pears
Remember that the interest rate you get is dependent on a number of things,
butthe main factor is if you are shooting for a fixed or adjustable ratemortgage
(FRM or ARM, as they are called for short). This is in factone of the first
decisions you have to make about your mortgage. Sayyou decide you are looking
for a 3/1 ARM, being fixed at an initial lowrate for the first three years and
adjusted each year after that. Thatmeans that is what you are going to use as a
basis for comparisonbetween different lenders. Don't get sidetracked by all the
otheradjustable mortgage rates or fixed rares on offer, they'll only get
youmixed up.
Tip number four - go for the adjustable rate mortgage
First of all, everyone has different needs and no one mortgage type will fitall.
Some people really appreciate the security of knowing the exactamount of their
mortgage payments for years to come, and that meansfixed rate is the best choice
for them. With that out of the way, whatwe're looking to find here is the best
way to lower the interest rateon your mortgage. And that definitely means
adjustable rate. Adjustablerates mortgages are nearly always lower than fixed
rates, just take alook at what your local bank will offer you. Over the life of
yourmortgage that adds up to serious money, and personally I've alwayshated
paying too much!
About the Author:
Gus Benson runs http://www.mortgage-content.com, a website dedicated to
information on mortgages, home loans and interest rates. Click to visit his
site: http://www.mortgage-content.com
|
