Home loan rates vary a lot from bank to bank and also from year to year. Locking in a low rate can significantly lower a home buyers cost over the long term so getting the best rate possible is one of the most important negotiations that a person will ever have to make. There are lots of ways to negotiate a better rate for purchasing a home but the most effective way is to persistently ask for a lower rate. All lending institutions want to get the most out of a customer as they can, just as much as you want to get the best offer for rates as you can. In these situations, you have the advantage of having all of the lending institutions competing to have you as their customer with their competitive home loans.
Better Home Loan Rates
Simply calling and asking for a reduction on advertised rates is an effective way of getting a reduced rate. If the bank does not immediately reduce the advertised rates then it is possible that they will offer to waive the package fee. Researching the fees and rates of the different lenders will give you the knowledge needed to get your rate as low as possible. Since the banks are competing heavily for your business they are willing to cut deals to get you to walk into their door.
Once you have narrowed down your options, make sure to never take other offers off the table. Another tool you can use is the amount of the loan you are willing to take. Often lower rates are given to larger loans since the banks see it as a way of making a larger profit in the long term. Consolidating other debt with the same institution is another way of bringing down borrowing cost. High credit card rates and car loan rates can be consolidated for a better rate for you and also give the bank an opportunity to have you as a customer on more business. Willingness to take a larger loan and consolidating other forms of debt can work well for both sides of the table.
A bit of homework and persistence can really pay off in what might be the largest purchase of your life so take some time and push for the best deal possible. The bottom line is that advertised home loan rates are negotiable and getting smart about your options can really help your bottom line in the long run.