Low Mortgage Rate
If you are paying a high rate of interest on your mortgage, you will naturally find it difficult to pay the installments. This becomes especially true if you have a long-term loan contract, for example, as in the case of repayment of a mortgage loan taken for buying property.
There is light in the end of the tunnel; there are numerous options for refinancing your mortgage.
This option can provide you the much needed financial solution in the form of interest savings and reduced repayments complimented with the peace of mind that you so necessarily require.
The first step towards obtaining a low mortgage rate is to make a thorough comparison search not only in your local area, but also by browsing through the Internet.
You will find that there is a cutthroat competition among lenders for attracting the customers and they vie with each other in providing low mortgage rates with easier terms and better services. There is a competition not only in attracting the good borrowers but also those with low documents and poor credit records.
Even a small reduction in mortgage rate can result into a large pay off. This is besides the free or reduced refinancing charges such as application fee, evaluation charges and legal fees which can add up to substantial savings and disposable income every month. Your savings can lend you a powerful borrowing leverage.
Lenders have devised ways to reduce overhead expenses and overall costs, and these they are pleased to pass on to the clients in the form of rebates. For example, they are likely to pay you $1,000 for a home loan of over $250,000. The lenders even offer generous rebates on smaller loans as well.
Even fixed rate loans are at an all time new low. For example, you may need to pay only around 6.99% for a 3 to 5 years’ period, which is 1.08% below the standard variable rate(comparison rate 7.33 %).
There are hordes of mortgage brokers who market the loans of scores of lenders and small building societies, credit unions and even big banks. They have hundreds of home mortgage products such as first home buyers home loans, fixed rate home loans, investment home loans, equity loans, no-deposit or 100% home loans, portfolio loans, low doc or no doc mortgage loans, professional packages line of credit facilities and so on. They are in a position to find a matching loan scheme to fit your low mortgage rate need.
There are other ways of availing the low mortgage rates. For example, if you can manage to stay in your home for at least three to five years, you can pay the loan in points. It must be noted that one point is equal to 1% of the loan amount.
Some borrowers are unnecessarily attracted by a large number of features attached with a loan. These may seem attractive on first glance, yet they only result in your paying a higher mortgage rate. In this context, you should opt for a fewer feature loan with a lower interest rate.
Always opt for split rate loans. Get a part of loan at a fixed rate and another part on a flexible rate. Make it a point to go for a larger loan at a fixed rate when the interest rates are higher and larger amount under variable loan when the interest rates are low.
Try to consolidate your sundry high interest credit card, shopping store, auto loans and so on into one mortgage loan. It will help you to save on your tax payments as interest on consumers’ loans is not tax deductible and interest on a mortgage loan is generally tax deductible.
Contact as many seasoned mortgage professionals as you can. Who knows you may be lucky enough to find someone who can devise strategies for you to get the lowest mortgage loan in the market?