Negotiating Will Save You More Mortgage Money Than The Broker
Nowadays, with interest rates still at near-historic lows, there’s never been a better time to negotiate with a mortgage lender to the get the best home refinance mortgage rate, for a fact. When one considers that just a single one-point drop in a current interest rate on a mortgage of $250,000 can save hundreds of dollars per month, it’s hard to see a reason for why not to do so.
Certainly, those folks who are sitting at 2015 with a so-called “bad credit” home loan (a sub-prime loan that’s at least 3 or 4 points above loans based off of the prime interest rate) need to be looking as soon as possible for the best home refinance rates. If they’ve been able to prove outstanding payment history, then it’s indeed possible to pull off a bad credit home mortgage refinance.
In truth, the best home refinance rates are still possible to get from mortgage lenders even in the most credit-tightened financial climate, but it’s going to be necessary to do a little research to first find it and then to present the strongest case possible to get that rate. There are numerous Internet-based tools to find the best home refinance rate, first of all. Just use a search engine to get started.
The formal name for these 2015 loan programs – and many are being offered under the auspices of a federal program like the FHA or the USDA rural plans, set up to help homeowners get out from under onerous home loans – has to do with the best refinancing mortgage rates, by the way. That’s why it’s important to make sure any lender approaching with what appears to be a low offer on the best home refinance rate is offering the right program.
Some of those programs have very good 2015 mortgage interest rates, but are for military and VA loans only.
Once a program’s been identified, there are a number of steps a homeowner can take to make the best case possible in order to get the best home refinance rate and which complements a sterling payment history. A willingness to pay what’s called a “buy down” on the points to be offered can also help secure the best home refinance rate. Offer the equivalent of 1% of the loan value if negotiations bog down.
This doesn’t mean, of course, that one will have to “bribe” the lender to get the best negotiable refinanced rate, though, and the offer should be used only if absolutely needed. If there’s proof of quality home upkeep and improvement that can be shown, then the best mortgage rate – or at least one that’s pretty darned good – should be offered fairly quickly.
In the end, securing the best possible refinance rate is more a matter of preparation ahead of time – meaning to dazzle the lender with real proof how reliable a borrower one can be – rather than of asking the lender what it can do and then reacting to its offers. Always be proactive, and the chances of success will be high.
So What Can You Do To Improve Your Situation?
If you will do nothing.. don’t expect anything to happen. The best advice is to bump your credit score up! It will give you better leverage when facing the lenders, and better negotiation position when applying for any financial need.
Lets not forget you are probably paying $500-$1000 extra per year in higher interest rates, and credit payments.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket. Don’t be cheap when it comes to financial education..
Ignorance costs more.