Negotiating your current Mortgage

Right now there are, relatively speaking, very few new mortgages being written, and a continually rising number of foreclosures being filed. These two circumstances alone put banks in a very tough position. After all, regardless of the current financial landscape, banks are still in the business of lending money. They need people to take out mortgage loans and make their monthly payments (an overwhelmingly large portion of which is made up of interest). However, they don't need or want to be stuck with a bunch of houses that people are no longer able to pay for. It won't make them any money.

This situation brings up an interesting thought: if you're not completely happy with your current mortgage, now might be a great time to negotiate for better rates, especially if you have good credit. The number of people that have gone into default on their home loans has skyrocketed in the past few years, and it seems to be growing exponentially by the month. Banks are therefore desperately looking for people that are going to be good for their loans, not those who are going to join the record number of foreclosures. So, if you have good credit and are prepared to purchase a home, or you already have a home at a higher interest rate than you'd prefer, you might consider doing a little mortgage shopping.

Many aspects of your search can be done over the Internet. Check out the banks you know and lenders you've heard of to get an idea of their current rates. You'll typically see a general mortgage rate printed someone on their website. Of course, they'll in turn need to know who you are and what type of credit you have. Once you give them your personal information and they're able to evaluate your credit history, they may see that you're just the kind of person they're looking for. Your high credit score will show them that you're a good risk and a person who's likely to pay their monthly bills consistently, which means profit for them money through interest payments. But, be sure to shop beyond the websites because there may be a number of special offers available that you won't be able to read about on your computer. While online you may only see one or two options for your mortgage, many mortgage lenders have other alternatives that aren't publicized on their Web. Contacting them directly and specifically asking what they can do for you may be the only way you'll find out about the other great that may be available.

If the numbers are still not where you want them, try to negotiate. If the lender really wants your business, they can pull a few strings and move some numbers around until they get a deal that suits you both. But, when you're negotiating, remember to be fair. Take a note of national and regional mortgage interest rates, and shoot for what the market is offering. Most banks will do everything they can to get you to do business with them (especially if you have great credit), but they also have banking standards that they must adhere to.