The SCOOP! Blog by® 'Stress-Free Mortgages'

Are mortgage rates negotiable?

December 10th, 2015 7:56 AM by Jackie A. Graves, President

 A: Mortgages are just as negotiable as any other product or service.

Whether it's a new home purchase or refinancing of an existing loan, the best way to start is to take multiple bids from lenders. There are several free mortgage comparison websites that can help you narrow your search and make the process easier. Get a good faith estimate, including all the fine print.

Look Beyond the Advertised Interest Rate

Advertising in the mortgage industry is just as deceptive as in any other industry. The advertised rates assume perfect credit and a big down payment. You get a different offer if you don't quite hit those marks, and that offer may be among the least competitive.

Pay close attention to the various fees and stipulations involved. Demand an explanation of the mortgage rate pricing adjustments if something seems unclear.

Use Your Strengths

Try get an even better deal than what the lender originally offered. The rate itself doesn't have that much wiggle room in these low-interest times, but ask the lender to shave off at least a little based on your strengths. An excellent credit history is attractive to a lender, as is an above-average down payment. Be prepared and have documentation ready to back up your claims.

Closing Costs

Closing costs is another highly negotiable area. The service, underwriting and document charges are all open to negotiation. The lender can usually waive the application and processing fees altogether. Even carrier charges, where sending a document via FedEx can supposedly run into three figures, should be challenged.

By Matt Danielsson – To view the original article click here


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