Negotiating Interest Rates

Negotiating Interest Rates


 Would you ever buy a car or book a vacation without shopping around? Well the same theory applies when choosing a mortgage rate. The First thing you need to know is it is possible to negotiate with lenders for a better rate. It just requires them to take a lower commission. Always keep in mind a quote is just a quote, until you are accepting an offer. 

Be informed. A mortgage contracts is a beneficial agreement between you and your lender. Shop around and know what’s available. Another way to do this is to learn the language. Knowing what you are looking for and the terminology, presents you as an educated shopper. Don’t give people the chance to present you with a less than perfect offer because you don’t understand the terms. 

Also know your own strengths. If you have a good credit rating, strong assets and documentable income, you are eligible for a great rate. Don’t be intimidated. You’ve worked hard and deserve to be treated fairly.

Shop around. Remember you are looking for what suits your financial situation best. Likely your bank will offer you a great rating, as a valued customer, but don’t stop there. Talk to multiple institutions. 

Mortgage brokers provide a free service, so make use of that as well. When doing this, always get a written quote. You want to be clear what is being offered.

Banks usually have great customer service policies. Don’t underestimate the value of being able to negotiate with someone. 

More than a rate. A great interest rate is important, but there are other things to consider. Associated costs and terms can drive up your closing price. You’re looking for the lowest total. Also you don’t want to be surprised down the road. Learn about penalties for making extra payments and what happens if you sell your house before your mortgage is paid in full.

Hidden cost of appraisals and document fees may seem minor when spending thousands, but you’ve earned this money. Often your home bank can waive these fees. It’s worth asking. The lender is being paid by you, let them earn it. 

Give yourself extra time. Pressure to close can leave you scrambling. Taking the time to compare rates and bottom lines is a huge advantage. This is your purchase, settle it the best you can on your terms. 

 Realize you are just another mortgage to the leaders do not be intimated. Ask for a discounted rate and be prepared to move on if they will not come down to a lower rate. By asking for a discount you can save thousands of dollars over the life of the mortgage.

Its your money! Lets try and keep more of it.

Any Questions always feel free to call me.

Todd Fryer
Sales Representative
Century 21
905 869-3473

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