How To Renegotiate Mortgages

By Jeffrey Paulsen on January 19, 2010, 12:17 pm Posted in Finance News

Now, more than ever, is the best time to refinance your mortgage. The slow economy has also created ample opportunities for home buyers to really get the most out of their mortgage. Whether looking to reduce monthly premiums, get out of an ARM, or to just find a home equity loan, here are some tips to make you an informed consumer.

Shop Around

Home owners sometime get the misconception that they have to stick with the same mortgage company. Many home buyers go with the mortgage company suggested by the realtor not realizing that the realtor makes the recommendation because they get “perks” from the mortgage companies to do so.

Shopping around at different companies does not mean that you have to commit to just one. Just because they draw up a “contract” that shows what your interest rate would be and what your monthly mortgage would be does not mean you have to sign it. You can even take the numbers to another mortgage company and ask for the same rate. You could do this with your current mortgage company; go out and get other estimates, bring it back to your current company and try to renegotiate the better rate.

Get That Security System

If you have been thinking about investing in a security system for your home it could drop your mortgage rate significantly. Since most mortgages are tied into home owner’s insurance, almost all companies require you to have home owner’s insurance before they will give you a mortgage, then if you have a security system it would lower your monthly premium.

 

Don’t Take The First Offer

Just like anything else you can negotiate with the mortgage company. You don’t have to accept the first offer they put on the table, unless it’s a really good one. Talk with your mortgage broker. They won’t tell you when your eligible for a better rate so contact them periodically for the latest on mortgage rates.

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