The Mortgage Negotiator

Here’s a quick joke for you:

How do you know that a homeowner’s mortgage rate has gone up?

…Oh, they’ll tell you.

In all seriousness, the subject of high mortgage rates has been a hot topic since it started rising over the last few years.

It feels so powerless, don’t you think? The lender sets mortgage rates, and no two of them offer the same thing. So, what can you do to ensure that you get the best rate?

There’s a bit more to it than haggling, so you’ll have to let your powers of persuasion take a back seat to a more tactical approach.

We have to first defer to the basics of looking for any type of loan:

  • It’s in your best interest (pardon the pun) to shop around to see what each lender offers instead of just jumping on the very first one that seems promising. You never know what kind of opportunity you might miss out on.
  • Keep tabs on your credit score. As with many things in this economy, having a great credit score can open up all sorts of doors for you. If a lender sees you as financially responsible, they may be more likely to offer you a reasonable rate.

Now, I did say that your powers of persuasion need to take a back seat, but there’s still room for them! If you do the legwork and have confirmed offers at more competitive rates, bring that to the lender’s attention to convince them to improve their offer, even if by a bit, to secure your business.

A decrease of a couple of points may not seem like a lot, but they do add up. For example, if one lender is offering a fixed rate of 6.75% and another at 6.50%, a mortgage of $250,000 would mean a difference of about $33 per month in savings. That doesn’t look like much, but over a 30-year mortgage, that’s a little over $11,000 you’ve saved!

Whether it’s your first mortgage or if you’ve been in the game a few times, it’s worth the effort to ensure you’re making the best choice for your financial situation and getting the best rates.

Need some more pointers on how to handle mortgage negotiations appropriately – and the rest of your financial needs? It might be time to start working with a financial advisor.

To book a 15-minute consultation and chat about your plan (where you are now, and where you want to be in the future), it’s easy – just click the buttons below.