Four Quick Tips On How To
Lower Your Mortgage
by Gus Benson
Are you buying a new home? I don't care if it's a condo or a house, you
will end up spending a lot of money. For most people it's going to be the single
largest business deal of their life. To keep expenses incheck it is extremely
important to try and secure the very best mortgage rate possible. There is a
number of things you can do to lower your mortgage rate, and right now is an
excellent time because of the low interest rates.
Tip number one - let lenders compete
Banks and mortgage brokers are in business to lend you money. If your
credit record is in order and you have a steady paycheck coming in you are a
prime candidate for a home loan, and banks will bid under each other to offer
you a loan. The trick is to let them know you are an informed customer looking
for the very best interest rate, and that you are also looking at what other
banks have to offer. Don't just go to your regular 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
low interest rate for your new home loan. As soon as one of these financial
institutions 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 the other 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, but the main factor is if you are shooting for a fixed or adjustable
rate mortgage (FRM or ARM, as they are called for short). This is in fact one of
the first decisions you have to make about your mortgage. Say you decide you are
looking for a 3/1 ARM, being fixed at an initial low rate for the first three
years and adjusted each year after that. That means that is what you are going
to use as a basis for comparison between different lenders. Don't get
sidetracked by all the other adjustable mortgage rates or fixed rates on offer,
they'll only get you mixed up.
Tip number four - go for the adjustable rate mortgage
First of all, everyone has different needs and no one mortgage type will
fit all. Some people really appreciate the security of knowing the exact amount
of their mortgage payments for years to come, and that means fixed rate is the
best choice for them. With that out of the way, what we're looking to find here
is the best way to lower the interest rate on your mortgage. And that definitely
means adjustable rate. Adjustable rates mortgages are nearly always lower than
fixed rates, just take a look at what your local bank will offer you. Over the
life of your mortgage that adds up to serious money, and personally I've always
hated paying too much!
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