Lowering your mortgage interest rate

Are you buying a new home? I don't care if it's a condo or a
house, you will end up spending a lot of money. For most people
it's going to be the single largest business deal of their life.
To keep expenses incheck it is extremely important to try and
secure the very best mortgage rate possible. There is a number
of things you can do to lower your mortgage rate, and right now
is an excellent time because of thelow interest rates.

Tip number one - let lenders compete

Banks and mortgage brokers are in business to lend you money.
If your credit record is in order and you have a steady paycheck
coming in you are a prime candidate for a home loan, and banks
will bid under each other tooffer you a loan. The trick is to
let them know you are an informed customer looking for the very
best interest rate, and that you are also looking at what other
banks have to offer. Don't just go to your regular bank, shop
around!

Tip number two - get your interest rate offer in writing

Right, so you have approached several different banks to try
and secure a lowinterest rate for your new home loan. As soon
as one of these financial institutions have pre-screened you and
are ready to offer you a loan,get them to put the interest rate
they will extend to you in writing.With this interest rate
locked in, you can now get back to all theother banks you are
talking to and tell them: "If you can't match a 5.25% interest
rate, we have nothing to talk about."

Tip number three - don't compare apples and pears

Remember that the interest rate you get is dependent on a
number of things, but the main factor is if you are shooting for
a fixed or adjustable ratemortgage (FRM or ARM, as they are
called for short). This is in factone of the first decisions
you have to make about your mortgage. Sayyou decide you are
looking for a 3/1 ARM, being fixed at an initial lowrate for
the first three years and adjusted each year after that.
That means that is what you are going to use as a basis for
comparison between different lenders. Don't get side tracked by
all the other adjustable mortgage rates or fixed rares on offer,
they'll only get you mixed up.

Tip number four - go for the adjustable rate mortgage

First of all, everyone has different needs and no one mortgage
type will fitall. Some people really appreciate the security of
knowing the exact amount of their mortgage payments for years to
come, and that means fixed rate is the best choice for them.
With that out of the way, whatwe're looking to find here is the
best way to lower the interest rateon your mortgage. And that
definitely means adjustable rate. Adjustable rates mortgages are
nearly always lower than fixed rates, just take alook at what
your local bank will offer you. Over the life of your mortgage
that adds up to serious money, and personally I've always hated
paying too much!


About The Author: Gus Benson runs
http://www.mortgage-content.com, a website dedicated to
information on mortgages, home loans and interest rates. Click
to visit his site: www.mortgage-content.com