When you’re really serious about getting the best mortgage rate you’ll need to work with a mortgage broker. These are professionals can access the numbers from a variety of different lending institutions. However, it’s a great idea to know something about getting the best rates yourself so you have that knowledge as well. Here are a few things that you should know.
Remember that banks don’t always put all their cards on the table at first. Research has shown they practice a form of price discrimination where they give better deals to people who negotiate with them and higher rates to the consumer that accepts their first offer.
Keep in mind that multiple searches pay off in lower rates. Here mortgage brokers have the numbers to back their claims up that they can save you money. For example, one sample group in a recent study reported that, on average, mortgage brokers drop the average rate by 17.5 basis points. In dollars and cents that means that you can pocket $1,670 worth of interest payments on a $200,000 mortgage over five years.
You can get a significantly lower rate when you do other business with the lending institution where you have an application. It’s advantageous to know that most branch managers can offer lower rates to clients that will make money for the bank in other ways beyond the mortgage.
Finally the bigger the bank the more it can charge in rates to lenders. This statistic indicates that going to smaller institutions gives you a better chance of getting a lower rate. New clients generally get better rates than existing ones as well.
Drawing from a choice of over 40 lenders from major banks to private sources, Derek Lacey, AMP is a Mortgage Alliance agent dedicated finding you the right terms and the right Mortgage for your needs. Email him at or call 519-624-9550. You can visit his website at .