There’s likely no greater financial commitment you will make then signing a mortgage for your home.? With soaring home prices, many home loans are typically for $200,000 or more.? Your monthly mortgage payment is likely to be your biggest expense each month. Why pay more than you have to? 
With some research beforehand as well as some negotiating during the home loan process, you can secure the lowest interest rate possible. ?The difference between even a 5% versus a 4% interest rate can make the difference between tens of thousands of dollars of interest paid over the life of the loan. Using these strategies to lower your interest rate is well worth it.? You’ll likely never get a better return on the investment of your time.
1.? Take the time to shop around.
While shopping around for the best mortgage may be time-consuming, it is definitely worth your while. If you just do not have the time to shop around or you are intimidated by the process, work with a mortgage broker.? Mortgage brokers do the leg work of finding the best mortgage for you.? Best of all, they work for you for free, and because they look for mortgages for a living, they can help you find the best mortgage for your financial situation.
2.? Compare apples to apples.
Make sure that you understand the terms of the mortgage and are comparing like mortgages.? If one mortgage will waive the origination fee and another mortgage will offer you the chance to buy discount points, novice home buyers may confuse the two terms and think they mean the same thing. They do not. Also, many home buyers make the mistake of just blindly looking at the monthly mortgage payment.? Do not do this.? Make sure to look at how much you will pay in total over the life of the loan and to consider any other features that may be unique to each mortgage.? The monthly payment amount should not be your most important consideration. ?It is important, but it’s not the only thing you should consider. If you’re unsure, a mortgage broker can help you understand the language of potential mortgages so you can compare similar aspects.
3.? Don’t be afraid to ask for additional discounts.
If you have excellent credit, try to negotiate the interest rate with the lender. They want to do business with you, especially if you have a solid financial record and are unlikely to default.? You could also try to negotiate the many fees that you have to pay when getting a home loan.? At the least, it doesn’t hurt to ask, and you may be pleasantly surprised when the bank agrees to a discount. The only thing they can say is “no,” so it does not hurt to ask. When you’re applying for a home loan, make sure to look at the whole picture, not just your monthly payment.? Take steps to secure the lowest possible interest rate, and you’ll save yourself tens of thousands dollars in interest over the life of the loan. What tips do you have to secure the lowest possible home loan rate?
