Its Never Too Late To Get A Better Rate On Your Mortgage

It's Never Too Late to​ Get a​ Better Rate on​ Your Mortgage
Perhaps you​ are a​ first time homebuyer,​ or​ maybe you​ have been in​ your current mortgage for years; whatever the​ case may be you​ should realize that it​ is​ never too late to​ get a​ better rate on​ your mortgage .​
Many people believe that mortgage interest rates are set in​ stone once they sign the​ papers - yet,​ today,​ hundreds of​ thousands of​ people negotiate better rates each year .​
the​ smart homeowner knows that by paying attention to​ the​ marketplace and their credit profile they can potentially save thousands over the​ life of​ their mortgage.
Most people tend to​ think of​ the​ purchase price of​ their home as​ the​ magic number which they are paying on​ every month .​
They think to​ themselves that they paid $150,​000 for their house without realizing that over a​ 30-year note they have actually ended up paying well over $400,​000! as​ anyone who has been involved with mortgages for any amount of​ time will tell you​ - it's all about the​ interest!
Interest rates will eat up the​ majority of​ your monthly payment for many of​ the​ early years .​
It is​ not unheard of​ for you​ to​ only be paying a​ few dollars against your principal (the actual loan amount) while the​ other 99% of​ the​ monthly payment is​ going towards interest .​
Yes,​ you​ are basically paying for someone else to​ make money off of​ your money .​
the​ interest rate you​ pay for your mortgage not only determines your minimum monthly payment over the​ life of​ the​ loan,​ but it​ also determines how much money you​ will pay towards interest over the​ life of​ the​ loan .​
Of course,​ the​ mortgage companies want to​ make as​ much of​ a​ profit as​ they can - after all,​ they are taking on​ a​ 30 year risk in​ some cases.
So what is​ the​ smart home buyer to​ do? There are actually several ways you​ can get a​ better rate on​ your mortgage .​
Whether you​ are just buying your house,​ or​ have been paying for years,​ here are some tips to​ help you​ nip the​ interest rate on​ your loan in​ the​ bud:
Shop around .​
Never go to​ only one mortgage provider when buying a​ new home or​ looking to​ refinance .​
Shop around with at​ least 3 mortgage companies and make sure they know that you​ are looking elsewhere .​
If they know you​ are looking at​ other mortgage providers,​ they know you​ are serious about getting the​ best deal possible and will be competitive in​ their offer.
as​ your credit profile changes,​ make sure your mortgage changes with it .​
Ten years ago you​ may have been a​ struggling newcomer to​ the​ workforce with a​ lower credit score .​
Today,​ you​ are a​ highly successful professional .​
So why pay the​ same rates you​ were 10 years ago? as​ your credit and personal finances rise,​ consider refinancing to​ take advantage of​ lower rates .​
Even cutting your rate by as​ little as​ half a​ point can save you​ thousands of​ dollars over the​ life of​ the​ loan.
Pay a​ few points up front,​ get a​ better rate .​
Often times you​ can purchase points up front to​ help reduce the​ rate .​
If you​ plan to​ stay in​ your house for years to​ come this often makes sense as​ the​ price you​ pay upfront is​ more than offset by the​ interest savings over the​ life of​ the​ mortgage.
When interest rates fall,​ fall with them! During times when the​ prime rate set by the​ Federal Reserve goes down,​ interest rates tend to​ follow (though not as​ much) .​
If you​ bought your house during a​ period of​ high rates you​ may find that current conditions allow you​ to​ refinance to​ take advantage of​ a​ full percentage point or​ more in​ rate reductions.
Its Never Too Late To Get A Better Rate On Your Mortgage Its Never Too Late To Get A Better Rate On Your Mortgage Reviewed by Henda Yesti on July 01, 2018 Rating: 5

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