Lately we have all become more curious about interest rates and the effect they have on our lives. Our main interest, of course, is to get the most for our money, and as most of us borrow money for a house purchase, part of this involves finding a good interest rate for our mortgage loan.
Many of us who are shopping around for financing are not strong enough about negotiating a lower interest rate. Perhaps we feel that we are not in a position of strength, but in fact, we often represent hard cash to the person negotiating the deal for us.
In many cases, this person will be a mortgage broker. The different types of mortgages vary so much that one short article cannot explain them all. However, once the mortgage broker knows all the facts about your finances. then he/she will know the best type of company to place you with.
If you are unable to get financing from your bank, there are still options out there. Folks who have a less than perfect credit rating can often still find mortgages through a broker. There are also such things as an equity mortgage, this is where you can use an existing property to raise money for a second property. Your broker can help you with many different scenarios.
In the case of house buying, your realtor will often be able to recommend a broker. Sometimes the recommended broker will go the extra mile to try and get you the financing, because he has a deal with the realtor to get a small percentage of the commission on the sale. This is a logical step for the realtor, as a house sale will often fall through because of the financing and then the realtor loses the deal.
It is in your favor to have a broker who is pulling out all the stops, so it is worth trying a broker recommended by the realtor, as well as one you may have in mind. The broker's fee is paid by the finance company who eventually finance you, so having more than one working for you is not uncommon.
The interest rate is negotiable right up to the moment of preparing the document for signing. Your mortgage broker can go back to the financier at any time. Even one quarter of a percent will save you hundreds of dollars.
Some advice from a group of independent mortgage experts reads as follows: When dealing with your lender, it is advisable to have the same steely determination as you would when dealing with a used car salesman!