3 Tips for Negotiating a Lower Mortgage Interest Rate

If you're shopping for a mortgage, you're probably hoping to get the best interest rate possible. Getting the best mortgage interest rate requires a little bit of work on your part. Check out these tips for negotiating a lower rate for your mortgage interest.

Do Some Shopping

You wouldn't settle on the first price thrown at you for a car would you? Don't settle on the first mortgage rate you are given. Shop around for quotes from other banks and credit unions. You might even want to contact a mortgage broker for a quote. Once you have these in hand, you are in a better position to negotiate to get the best rate possible.

Know Your Stuff

Don't approach a mortgage without knowing what you're doing.

You might not be a banking or finance expert, but you can take a little time to get to know a little about the business. Study mortgage, banking, and finance terminology so you know the lingo. The more you know about the terms that are being thrown around, the better you are able to stand up for your own interests. Don't allow the lender to confuse you with jargon and terminology -- becoming informed about what everything means allows you to show the lender that you won't be cowed or confused into a deal that is not in your best interests.

Learn to Leverage

Don't be fooled into thinking that the rate you are given is set in stone. Mortgage rates are always negotiable to some degree. If you have good credit and plenty of assets, then you have leverage to get the rate you really want. On the flip side, if your credit is poor, you don't have as much power to bargain with. Regardless, though, a mortgage rate can be negotiated and isn't final until you get an official written confirmation.

Don't accept the first interest rate you are given, do a little shopping around, and become an informed borrower. These tips will help you get the best deal possible as you are shopping for a mortgage.