Good Credit Mortgages: Negotiating Loan Terms

When shopping for a good credit mortgage, you will have some leverage in the process. If you have good credit, you will be able to negotiate certain terms of the loan. Here are a few things to consider about negotiating loan terms with a good credit mortgage.

Interest Rate

One of the main things that you will be able to negotiate is the interest rate on the loan. Depending on the lender, you may not have much room to work with on the rate. However, even if you can get them to come down a fraction of a percentage point, it can save you money on your monthly payment and the total amount of the loan.

Closing Costs

You will also be able to negotiate the closing costs with your lender in many cases. You will be able to get a good-faith estimate from your lender and look at all of the individual closing costs that are associated with your loan. If you are shopping around, you will be able to use this as a negotiation tool. Since you have good credit, lenders are going to want to secure your business. This means that they may be willing to eliminate certain closing costs in order to get you to agree to the loan.