Five Ways To Get The Lowest Interest Rate On Your Home Loan

19 Aug

19Aug

See that you are creditworthy.

When you approach anybody for a loan the first thing that he will need to know is your credit history. If you have a reputation for being prompt in your payments and always up to date, the new lender may consider charging you a lower interest rate for whatever sums you want to borrow from him. When you go for a mortgage or its refinance see that your credit report is clean and has no history of tardy payments. Never default on payments and expect that the finance company would overlook this.

Look around for the best rates.

If you are already having a mortgage the finance company you are already dealing with, it would be comfortable for you to discuss any refinancing with them . This has a lot of advantages, as the finance company already has all your details and past history and may not take much of persuasion to grant you that refinance if you have a good track record with them. But it is always better to shop around. After all financing is a business and you should not hesitate to take advantage of the competition that is there in every business and see if you can get yourself a better deal. Make sure that you understand all the conditions involved and are not carried away by the up front low interest regime suggested, that hides the other conditions involved, which may ultimately lead you to paying more than you anticipate.

Bargain.

Get all the various offers in writing. Study them in detail and consult your accountant or banker if you have any doubts. Then set up a meeting with the finance company and see if you can bargain them down to a lower rate. Always see that your part of it in credit ratings and past history is blemish free. This will give you a very great advantage in pressing for more favorable rates. Always be wary of companies that agree to your suggestions easily. And of course always see that you are dealing with firms that have a reputation in the market for fair dealing.

Cover all the angles.

The interest rate is not the only thing in getting loans. There are quite a few other costs involved like fees, covering costs, insurance and the like. Make a study of the total sum that your finance will ultimately cost you before you zero in on the scheme that you want. One company's low rate offer may sound good, but he may be charging you more after adding on the various other charges.

Anticipate the future.

A householder's commitment never ceases and you may have to make provisions for your family in many areas, and this could affect the payments that you have to make regularly for your loan. See that the period of your loan is such that you are reasonably sure of your income and outgoings for that period and that no other requirement would intrude on it.