Getting a Good Rate
Given the current tough economic climate, money home owners and prospective borrowers are looking for the best possible interest rates. This article offer tips for getting the best home loan rates:
1. Shop Around
By far the most important tip for finding good deals is to shop around and compare home loans from a range of lenders. The Internet makes comparing home loans much easier than it used to be. Be sure that you understand the terms of the loans that you are comparing. For example make sure that you compare rates that are in fact comparable. For example, many advertised rates are introductory rates and com with special conditions.
2. Consider non-bank lenders & online products
Many potential borrowers tend to head off to their regular bank for finance. This may be a convenient option but not necessarily the cheapest option in terms of interest rates. There are also some good deals on online home loans by lenders that do not offer bank branches. You link their online mortgage account to your savings account. All payments in or out of the mortgage account must done online. Because theses lenders do not have the branches they can offer a better deal. These lenders also offer phone service through a call center.
3. Bundle your financial products
Some banks and lending companies offer significant rate discounts if you have more than one financial product with them such as credit cards and savings accounts with a minimum balance.
4. Consider fixed rates
In an environment of rising interest rates, a fixed rate or fixing a part of your mortgage may be a prudent strategy. However, if rates go down you will be locked in at your higher fixed rate. A better strategy may be to fix half or your mortgage and leave the other half on the variable rate. This way, you protected against rising rates and can still benefit from falling rates.