Find The Best Mortgage Rate For You
by Kent Clarke
Most people tend to take out a mortgage, then
forget about it. The monthly payments go out from their accounts every month,
but they probably couldn't tell you what the interest rate was if you asked!
This is slack financial policy - it is easy to make sure you always have the
best mortgage rate, and therefore pay the least interest. And believe me, over
the years, even a fraction of a percent reduction in interest rates means big
savings!
You need to get in the habit of noticing current interest rates. This is
especially true if you are currently in the market for a new mortgage.
Generally, mortgage rates track the central banking system's 'base rate', but
there are a LARGE number of deals for new customers, including early year
discounts, fixed rates, capped rates and so on. If your mortgage company isn't
offering you a competitive rate, but other mortgage lenders are, confront them
with it! Often they rely on your disinterest to keep overcharging you interest
(excuse the pun!). When confronted, they usually crumble and will offer you a
better deal rather than lose your custom.
Always use the APR when comparing loans. The APR (Annual Percentage Rate) allows
you to compare the loans offered by different mortgage lenders in a like for
like manner, and shows you the true cost of the loan as a yearly rate. This
stops lenders hiding 'extras' (such as upfront fees) behind a fog of low rate
claims, and means you have the true rate to play with. generally, most house
hunters get an approval in principle from their chosen mortgage company. This
makes you more attractive to sellers because it shows you are serious, and have
the financial wherewithal to proceed should you decide to try and buy their
house. It will also give you a firm indication that of what your budget is
(although most lenders have slackened their rules in recent years, they still
apply SOME rules!). This pre-qualification will keep you in the right price
bracket too, and stop you wasting time on properties beyond your reach. If you
meet the lender's criteria, try to lock in a rate. This means the lender
promises to hold their offer for you at a certain rate for a certain time while
you proceed with the purpose. Variable rate mortgages, more popular in Europe,
can be crippling if rates rise from the historically low rates prevalent at time
of writing.
For the next step, consult www.mortgagedown.com
and get that mortgage down!
About the Author:
Kent Clarke writes for several websites, including www.mortgageDown.com
- the place to get your mortgage down, free!
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