As the national advertising for a particular financial service says “It’s your money…”Truer words have never been spoken.
A mortgage holder is in truth selling you your own money; it is just over a long period of time.The fact is that they are loaning you money to repay called a principle, plus interest, that in the simplest of terms are their fees.
When seeking a mortgage whether new or renewed it is your responsibility to get the best deal you can.You wouldn’t buy a new car or truck without doing some negotiation over the price and the services of purchasing that vehicle, so why should your mortgage be any different?You are in the money marketplace.The showroom is just a little office.
Most people are uncomfortable in this sphere because they don’t understand it.Often they simply accept the terms being offered and sign on the dotted line.It is rare for a lender to suggest ways for you to save significant amounts of money.If they did they wouldn’t be doing their job and that is to make as much money for the lending institution as possible.The solution is to be educated before signing on the dotted line.This doesn’t mean you need an MBA to understand and negotiate, but you do need to know your options.
Interest rates vary slightly from one institution to another but more importantly are the terms attached to the mortgage that can save you real money.One needs to look at repayment terms, prepayment terms, renewal fees and a host of other considerations that can have a major impact on the amount of money you have to repay.
The person sitting on the other side of the desk with that ominous computer screen you can’t see can negotiate your mortgage.She or he may not be able to make the final decision, but their recommendations can go a long way.The other wild card in your hand is the fact that you have looked into switching to another lender.Business is competitive and they want your business.