15-year or 30-year? Fixed or adjustable? Coke or Pepsi? Ok, so maybe that last one has nothing to do with buying a home, but there are a lot of important questions you have to ask yourself when thinking about taking out a mortgage. Not only should you use your negotiating skills to get the best rate possible, but you should also make sur... Read more
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First, don't get greedy. Mortgage rates fluctuate, often day by day. When you are thinking about refinancing or taking out a new mortgage new keep an eye on the market and know where things are headed. When you see a low rate, lock it in and don't hold out thinking that "if I can just wait one more day?". Often that day never comes and you are left with a rate than can be as much as a full percentage point higher! The golden rule: don't be greedy! Next, crack open that nest egg that you've had set aside for a rainy day and buy into the equity in your home. The more you put towards the down payment, or into your equity, the lower your rate will be and (as an added benefit) the less you will pay in interest over the years no matter what your rate is. One of the single best things you can do to save money in the long run when it comes to your mortgage is to get your equity built up in the beginning. Don't strain yourself financially, but don't keep your piggy bank tucked away for a rainy day - because you can buy a lot of umbrellas with the money you are going to save! Negotiate, negotiate, negotiate. A lot of people think that when they sign their mortgage notes that what is written down is set in stone. Mortgages are just like buying a car - you have plenty of room to negotiate on rates, fees and other costs. Shop around and play hardball - after all, it is your money we are talking about here! Take advantage of the buyer's market out there and ask your seller to pony up some of the closing, inspection and other costs. Some seller's will even purchase points for you - and it never hurts to ask. Whenever there is a glut of housing on the market a savvy buyer can take advantage of it by getting a lot of the costs taken care of by the seller, thus leaving him or her with more money to throw towards the down payment! Another win-win situation! Finally, know when to hold 'em and know when to fold 'em. Once you get a good rate with minimal fees, lock it in and forget about it. Sure, you could have saved another $100, but in the meantime interest rates went up 0.25% -- So much for that $100 savings! So put away the magic ball and instead work on your negotiating and financial skills. You may find that you don't need a magic ball after all, you just need a bit of mortgage know-how to get a rate and a note that you can benefit from for years to come.
When home buyers are looking for a new mortgage, or going to refinance an existing one, they typically pay close attention to the interest rate associated with it. While the interest rate is one of the most important pieces of ... Whether you are a first time home buyer, or you have been purchasing real estate for years, one of your main goals other than finding the perfect piece of property is to make sure that your mortgage rate is as low as possible. ... Wouldn't it be great if everything in life came with a checklist? Unfortunately, for most of us we have to learn life's lessons the hard way - by experiencing them! Fortunately, for home buyers there are some rules of the game... The kitchen that looks like it came straight out of a 1960s magazine; The front porch that is slowly pulling away from the house; the garage door that closes - 50% of the time. As a homeowner you know that as the years go by yo... Death and taxes - two things you know are for certain in life. However, there is a third that is almost nearly as certain as those two - fluctuating interest rates. With a home mortgage being one of the largest purchases you w... Many of us are facing increasing mortgage payments in the months and years ahead because of adjustable rate mortgages (ARM) that are beginning to adjust. For some people, their average payment can jump as much as 100% -- from $...
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