Home prices are going down and the economy is in a slump. A lot of homeowners are worried over the amount of debt they have incurred on their house during the good times, when prices kept going up.
On top of that, in the next few months a lot of fixed rate mortgages are ending and need to be renewed. This means you will have to talk to your lender about interest rates and conditions. Banks have incurred a lot of damage lately. Unlike the regular Joe, the banks get bailed out by billions of taxpayer dollars by the government. But despite these multi-billion stimulus plans, banks have yet to recover completely.
You need to know what fees a bank is going to quote you when renewing your mortgage. Mortgage fees have gone up lately and it’s better to know upfront what you’ll have to pay. Also, your credit score has a serious impact on the interest rates and fees involved. If it has gotten worse lately, try to get it up or prepare to pay higher monthly payments. On the other hand, if your credit score is pretty clean and you have at least some equity in your home, there is room to negotiate with your lender.
A lender wants to keep his clients that have clean payment histories. They know these clients are reliable and that they are worth far more than an occasional mortgage shopping client. This gives you an edge.
Before you go and negotiate with your lender, do your homework and browse the Internet for information. It’s easy to find the current average interest rates for your type of mortgage and see what deals are out there. Know upfront what you can expect.
When speaking to your lender, always demand to see the whole picture, with all the fees and costs included. Don’t allow the lender to sneak some costs by you, because they will probably try that. You need to find out before the closing, otherwise you’re going to be too late.
Related posts:
You must log in to post a comment.