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How To Get The Lowest Mortgage Interest Rates

By Edited Apr 29, 2014 0 1

How To Get The Lowest Mortgage Interest Rates

Borrowing money to buy a house can sometimes be the biggest burden that many individuals face; however, not many people have a lump sum of money to buy the property outright, so unfortunately it is a reality that many people must face. Getting the best rate of interest rates can literally save you more money than you can imagine. However, it is not as simple as walking into the bank and asking for them; some extra steps must be taken to ensure that you get the lowest mortgage interest rates. It may not be easy, but it is definitely accomplishable; with enough time, effort, and using the ideas from this article, you too will be able to save a ton of money throughout the life of your borrowing!

Get The Lowest Mortgage Interest Rates By Being Aware And Following The Averages

One of the best ways to get a great percentage is to know when it is significantly lower than average. Unfortunately one of the only ways to know this is to have followed the figures for at least a few months, or at least be aware of what they were by looking them up. By doing this you will be able to get the lowest mortgage interest rates by simply knowing when they are present. This is also great because the lowest mortgage interest rates usually form through trends rather than suddenly appearing; moreover, you can slightly predict roughly when they will be at their lowest point, and act accordingly so that you get the best deal.

Get The Lowest Mortgage Interest Rates By Having Great Credit

Your credit score plays a significant role when it come to your ability to borrow a certain amount of money; however, it plays an eve more significant role when it comes down to getting the lowest mortgage interest rates. Your credit score can be thought of as how good your relationship is with the people that will lend you money, also known as the credit bureau. Having a high credit score shows the credit bureau that you have treated them well, and they will treat you well in return; they do this through giving you the lowest mortgage interest rates. A good credit score also shows the bureau that you have a good ability to pay back what you have borrowed, which allows them to give you a better percentage as well.

Get The Lowest Mortgage Interest Rates By Knowing A Mortgage Broker

Having worked at a major bank for almost 2 years throughout university, I can personally tell you that financial representatives have a certain amount of discretion that they are allowed to give regarding the "cost of borrowing money". One of the biggest benefits of knowing a mortgage broker is that they will willingly give you the most discretion, which will ultimately allow you to get the lowest mortgage interest rates. Many brokers will give you some discretion on the percentage, even if they have never met you before; this is used as their competitive advantage against other brokers. However, the more discretion that they give, the less money or sales points that they will earn. With this being said, it is best to know the broker on a personal level when trying to get the lowest mortgage interest rates.

Get The Lowest Mortgage Interest Rates By Becoming An Employee

In addition to the discretional percentage that can be offered to friends and family of the broker, the banks and lending companies also offer great discretion to employees of the company; this can be your key to getting the lowest mortgage interest rates. Some companies allow you to lock in the discretional percentage for the entire term, and others only offer you the reduced percentage for the time that you are employed with them. It may be well worth your while to try to get hired by one of these companies, as it would allow you to get the lowest mortgage interest rates.

The percentage that you receive for borrowing money to purchase a home can literally make or break your financial situation. With homes being the biggest investment that a person makes, a small discretion on the percentage can make a humongous difference. With that being said getting the lowest mortgage interest rates can greatly pay off over the long run. However, simply asking for the best percentage will not allow you to get anything more than a small reduction. You must really dedicate your time and effort into getting the lowest mortgage interest rates. It may be difficult, but remember that when you get it, the benefits will greatly outweigh the time and effort that you have put in!

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Comments

Aug 16, 2010 7:36am
Sookie
good information here. It is good to compare banks and mortgage brokers for a good deal. Great article!
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