Tips For Saving Money On Your Home Loan

Tips For Saving Money On Your Home Loan

Tips For Saving Money on​ Your Home Loan
The application process for a​ home loan can be complex and hectic .​
When borrowers get caught up in​ the​ moment,​ they often forget to​ angle for better deals .​
Tips For Saving Money on​ Your Home Loan
The best way to​ save money on​ your home loan is​ to​ get the​ interest rate reduced .​
Cutting the​ interest rate by even a​ quarter point can save tens of​ thousands of​ dollars in​ interest payments over the​ life of​ the​ loan .​
Unfortunately,​ lenders are very resistant to​ cutting interest rates .​
The only bullet you​ really have in​ your arsenal is​ to​ bluntly state that you​ will take your business elsewhere if​ they do not cut the​ rates .​
Since the​ real estate market is​ cooling off,​ lenders are becoming more receptive to​ these suggestions since they no longer have loans just pouring through the​ doors .​
If the​ market heats back up,​ you​ can forget about the​ viability of​ this position .​
If you​ are going to​ try to​ get the​ interest rate knocked down,​ information is​ your friend .​
You will have far more success if​ you​ can show the​ lender a​ better interest rate being offered by another lender .​
Look for marketing pieces by other lenders on​ the​ same or​ similar loans .​
There is​ really only one definite way to​ cut down the​ interest rate on​ the​ loan .​
It has to​ do with points .​
If you​ have a​ pool of​ cash at​ the​ time of​ application,​ you​ can attempt to​ buy down the​ interest rate by paying more points at​ the​ outset .​
While lenders are receptive to​ this approach,​ most people do not have large piles of​ cash lying around .​
Scraping enough together for the​ down payment is​ usually a​ sufficient problem .​
Still,​ there are other ways to​ save money on​ your mortgage.
If a​ lender is​ charging you​ points on​ your home loan,​ they are highly negotiable .​
Lenders view points in​ a​ more flexible manner .​
The higher the​ value of​ the​ home you​ purchase,​ the​ more a​ reduction in​ points can save you​ money .​
If nothing else,​ you​ have nothing to​ lose by asking for a​ quarter or​ half point reduction .​
Cutting the​ best deal possible at​ the​ time you​ apply for a​ mortgage is​ critical .​
Even small concessions by the​ lender can save you​ tens of​ thousands of​ dollars over the​ life of​ the​ loan.

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