Regardless of who you are, everyone likes to pay less for their mortgage repayments. These repayments are often the largest payment that you will make monthly, and they limit your cash flow. Therefore, negotiating the best rate possible, whether you are seeking to take out a new home loan or refinance, makes sense.
Negotiation can save you more money on your mortgage repayments and give you better home loan features for less. It can also shave years off your home loan term. Lets look at how you can improve your negotiation skills now, so you land yourself a better deal.
The first way that you can reduce your mortgage repayments is to ask your lender for a better rate. As the adage states, Those who do not ask, will not receive. But before approaching your lender, make sure you identify where there is room to move. You can do this by comparing your rates to others on the market. Also, make sure you look only at loans that are the same as yours because you cannot compare apples to bananas.
To make an accurate comparison, first look at your existing home loan. If youre seeking to take out a new loan, then look at the loan that you prefer. Next, make a note of the type of loan that you have, the interest rate and any features. Also, check your terms and conditions, these highlight any exit or break fees.
If you are comparing home loans on the internet, then be sure to print out the details of the loan that you like. So, you can take this print out with you to your lender appointment. This information will allow your lender to see what home loan you are interested in. Plus, they will then be able to match this loan better.
When you arrange an appointment with your lender to negotiate, sound confident. Sure it can be daunting having to discuss your finances with a financial institution, especially a larger one. But knowing what you want to discuss will give you an upper hand. So will having a well thought out plan or line of attack.
If you have any questions to ask your lender, then write these down. You can then take these with you so you can ask these at your appointment. This strategy will allow you to remember everything that you want to know about. Plus, it will allow you to be more confident when asking the questions.
It is also important to know what you want to discuss. So, make sure you do your research before going to any meeting with your lender. Knowing what you wish to say also enables you to be more confident when negotiating your mortgage repayments.
If you have been banking with a financial institution for over 10-years, then often you can use this as bargaining power. A bank will not want to lose you as a customer. So often they will look at ways that they can better meet your needs.
If you are looking to secure a sizeable mortgage, then most lenders will be interested in offering you a better rate. So do not be afraid to use this as bargaining power. Most lenders will reduce your rate, which, in turn, will reduce your mortgage repayments. This enables them to either gain or retain your business. As most dont want you going down the road to another lender.
Lenders often do not advertise their best rate. They will advertise a rate that is better than their competitor. So you can often negotiate a better rate with a lender, especially if you have a strong credit history. As well as a high rating, making you low risk.
Are you looking to reduce your mortgage repayments? Then contact eChoice and find the right home loan for YOU today.