Cheap Mortgages and Loans Fees Tips
Filed Under Cheap Mortgages Tips |
The biggest mistake a home buyer or a customer that is looking for best mortgage deals and cheap mortgages will make, is only looking at the monthly payment or just finding what interest rate you will be paying. We will try to look at the total cost of a loans and help you see important fees related to cheap mortgages.
We will start with the interest rate. When you contact the lender about cheap mortgages, ask for the rate and then ask if this is the lowest rate for the week. This sound simple enough but you will be surprised how many potential home buyer don’t even ask this question, the reason could be, they fear rejection and the anxiety of just the whole home buying process.
Points are another term you should sound very familiar. So we will keep this simple. Points is 1 percent of the total loan, so this is where you want to negotiate, many times points have mortgage broker’s fees built in or the mortgage broker is giving you inflated point so he will make more money at closing. So when it comes to getting the best mortgage deals and cheap mortgage, always negotiate points, I can’t stress this enough, most of the time you can take off ½ point just by asking for lower points.
Fees..yes the dreaded fees. These fees will kill any chance you have on obtaining cheap mortgages. This is another money maker for banks, mortgage brokers and even credit unions. Have you ever seen that commercial, when a women talks about different kind of fees she was charged when applying for the loan ?
The lenders will try and stick you with lots of different and ridiculous fees and it’s your job to reduce or eliminate them. Ask for a print out of all the documentation fees, look for fees that don’t make sense like $25 fax fee, $150 transaction fee, $200 administrative fees and my favorite the $300 miscellaneous fees.
Don’t get shy, these people are trying to make as much money as they can, so please ask them to remove the fees and be firm about it. If you want best mortgage deals and cheap mortgages, then start treating the lenders like you would treat used car sales men. If you don’t adapt this way of thinking then it will be much harder to obtain cheap mortgages.
Mortgage Glossary
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