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Compare And Negotiate Interest Rates
And Fees

If you are thinking about buying a home or refinancing your current mortgage, do a little comparison shopping for the lowest interest rates and fees.

All banks, mortgage companies, credit unions, and savings offer different interest rates on the loans they offer. It is wise to shop around for the best interest rates because the choices are varied and can make a big difference in your monthly payments.

A quarter or a half of a percentage difference in interest rates can add up to be thousands of dollars over a fifteen or thirty year loan period. The difference may seem small at first, but over time, it grows into a big loss for you.

Lenders are out to make money. That's what they are in business for. They are not going to tell you that their competitors are offering better rates or lower fees. If you don't take the time to investigate your interest rate options, you may end up paying more than you have to.

Take the time to compare interest rates from the bank you do business with on a regular basis, a credit union, mortgage company or other source. Most lenders post their rates and fees online and offer mortgage calculators to help you determine the amount your payment will be.

As a borrower, you have the right to negotiate your interest rate, term of the loan, points, and the fees. Home inspections, escrow fees, title insurance, and other fees differ from company to company and you can chose the company you want to use. Points can get expensive but are tax deductible.

By making comparisons and negotiating lower fees, you can save hundreds of dollars up front. Over time, a lower interest rate will help reduce the cost of your loan and save you tens of thousands of dollars.

When you decide to go with a particular lender, you still have options, especially if you think interest rates are going to get lower. You can ask the lender to allow your rate to float for 30 to 45 days before locking it in. The same applies to interest rates that are going up. You can ask your lender to lock it in immediately.

When applying for a mortgage, your credit score is very important. Your credit can be the key to saving you a lot of money or it can be the catalyst for making the costs of getting a loan go sky high. Before applying for a loan, you should get a free copy of your credit report from each of the major credit reporting agencies, Equifax, TransUnion, and Experian. This will give you an opportunity to see what's on your credit and try to clear up any errors before your lender see's it.

To save money on fees, challenge your lender when you think you are being charged excessively. Ask questions and don't be afraid to say no to. By questioning what you are being charged for, it serves notice that you have done your homework and know what are reasonable fees and what are not.

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