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