Things You Need To Know Before You Sign For Your New Mortgage
Economic times are tough. Because of the fact that properties don't rise in value and in some cases even drop in value, homeowners are worrying about the debt they incurred on their house.
On top of that, in the next few months a lot of fixed rate mortgages are ending and need to be renewed. This means you will have to talk to your lender about interest rates and conditions. Banks have incurred a lot of damage lately. Unlike the regular Joe, the banks get bailed out by billions of taxpayer dollars by the government. But despite these multi-billion stimulus plans, banks have yet to recover completely.
You need to know what fees a bank is going to quote you when renewing your mortgage. Mortgage fees have gone up lately and it's better to know upfront what you'll have to pay. Also, your credit score has a serious impact on the interest rates and fees involved. If it has gotten worse lately, try to get it up or prepare to pay higher monthly payments. On the other hand, if your credit score is pretty clean and you have at least some equity in your home, there is room to negotiate with your lender.
A lender wants to keep his clients that have clean payment histories. They know these clients are reliable and that they are worth far more than an occasional mortgage shopping client. This gives you an edge.
If you want to come prepared to the negotiations with your lender, browse the Internet and look for the average rates and deals that are out there. It may shock you that some fees have gone up, so it's important to know what you will be dealing with upfront.
When speaking to your lender, always demand to see the whole picture, with all the fees and costs included. Don't allow the lender to sneak some costs by you, because they will probably try that. You need to find out before the closing, otherwise you're going to be too late.
On top of that, in the next few months a lot of fixed rate mortgages are ending and need to be renewed. This means you will have to talk to your lender about interest rates and conditions. Banks have incurred a lot of damage lately. Unlike the regular Joe, the banks get bailed out by billions of taxpayer dollars by the government. But despite these multi-billion stimulus plans, banks have yet to recover completely.
You need to know what fees a bank is going to quote you when renewing your mortgage. Mortgage fees have gone up lately and it's better to know upfront what you'll have to pay. Also, your credit score has a serious impact on the interest rates and fees involved. If it has gotten worse lately, try to get it up or prepare to pay higher monthly payments. On the other hand, if your credit score is pretty clean and you have at least some equity in your home, there is room to negotiate with your lender.
A lender wants to keep his clients that have clean payment histories. They know these clients are reliable and that they are worth far more than an occasional mortgage shopping client. This gives you an edge.
If you want to come prepared to the negotiations with your lender, browse the Internet and look for the average rates and deals that are out there. It may shock you that some fees have gone up, so it's important to know what you will be dealing with upfront.
When speaking to your lender, always demand to see the whole picture, with all the fees and costs included. Don't allow the lender to sneak some costs by you, because they will probably try that. You need to find out before the closing, otherwise you're going to be too late.
About the Author:
Rick is a broker writing about mortages and financial matters. He also writes about oversluiten hypotheek and hypotheek afsluiten in Dutch.
posted by Credit Counseling at
12:19 PM
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