As frequent readers of our blog know, we’ve been shopping long and hard for a replacement to our adjustable rate (ARM) mortgage. We are nearing the tail end of the process, and have comparison shopped closing attorney’s and lenders.
Getting good information regarding lender’s is not an easy process. Unlike shopping for say, groceries, one can’t just go into a store and compare prices between products. The reason for this is that mortgage rates fluctuate daily, there are a wide variety of loan products to choose from and a borrowers credit can impact the loan costs.
What Miel has observed is that the best deals are obtained by haggling. In general, haggling is a dying art in America, but it is really helpful when mortgage shopping. Not everyone is comfortable haggling, which can cause interpersonal problems if its not finessed well. For example, a lender might become insulted or distressed at your request for a no-fee loan.
Finally, it pays to shop around. Mortgages are expensive, but negotiating fees and interest rates at the outset can result in big savings to one’s finances. For example, a 1% interest rate difference on a $300,000 note is about $200.00 per month cheaper and you’ll pay $76,000 less over the life of the loan.
Best,
James & Miel
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