It is only natural to wish for the best mortgage rates here in Ogden when looking to own the roof over your family’s head. In most cases, prospective homebuyers defer to the terms a lender offers without questions. While qualifying for a mortgage is a big deal, you should always strive to get better rates.
Surprisingly, lenders are open to negotiations on all matters home loans. With a bit of persuasion, you can bring down the interest rates and save quite a bundle in the end. However, you can only achieve this feat if you have sufficient leverage.
Bring something to the table
To earn your place at the negotiating table, you need to cap the amount you’re borrowing at 80 percent of the home’s total value. Lenders laud such borrowers and hold them in high regard. They will reward you with lower interest rate and with a little bit of effort, you can get them to go even lower.
On the other hand, if you can’t manage the 20 percent down payment, you lose your say in the matter. Asking for more than 80 percent marks you a high-risk borrower, which comes at an additional cost. To safeguard their interests, lenders will insist on private mortgage insurance.
These premiums pad your monthly payments and work out to quite a lump sum over the life of the mortgage.
Prove that you’re creditworthy
Think about it; you are out asking a bank to advance you a fortune to realize the dream of owning a home. In return, you are committing to repaying them every month at the agreed interest rate. Is there a better way to show your commitment and ability than a previous history?
A good history of paying your debts in full and on time increases your chances of getting loan approval. It also gets you a high credit score, which gives you leverage when negotiating interest rates.
The interest rates on your mortgage influences the total cost of the house. Therefore, you should make every effort to get the lowest possible rates when securing a mortgage.