Negotiating Mortgage Loans—5 Important Tips

While mortgage loans take up a substantial amount of our time, money and energy, there are ways of negotiating it; this way you end up saving a lot on your money. Read the following post to know more about ways to negotiate mortgage loans.

Renewal of Mortgage Loans

In the process of home buying, mortgage loans have a significant role to play. While, this is the case, it goes without saying that mortgage loans happen to be one of the biggest monthly expenses that are incurred by several millions across the globe. Nonetheless, if you make the right moves, you can make the maximum out of your mortgage loans. There are some lenders who offer a certain amount of negotiating percentage. However, it is suggested that, instead of waiting for the last six-month duration to fix things up when your mortgage comes up for renewal, it is advisable that you start off shopping for mortgage rates and end up negotiating on proper basis so that you can make the best of rates available for mortgage loans.

The maximum time-limit offered by lenders in these matters are six months; this time is enough to guarantee proper discounted mortgage rates. Now, if the rates continue to grow rapidly, the best thing you can do is to protect yourself from the rapidly increasing mortgage rates. The following paragraphs explain some of the ways of negotiating mortgage loans:-

Substantial Research Work

Research work is the first thing that you need to put in; talk to friends and family; go online and read up about mortgage loans as much as possible. You will end up acquiring a lot of information about the basic features of the mortgage loan. You can also draw a competitive analysis between mortgages.

Explore all your Options

Always end up negotiating more than the normal interest rate that is assigned; this step is quite critical for the process of the renewal of your mortgage loans. If you negotiate properly, you can always end up reducing the rates considerably; while negotiating the amortization period do discuss the flexibility that is offered in the process of payment schedule. Do keep a check on the types of mortgages that are available – fixed mortgages or variable mortgage.

There can be more than one quoted Rate

 Imagine a situation that you have already set a deal with the lender and it seems like you had a fair deal of policies. But hold on, this might not be the final rate quoted by the lender. You have the liberty to approach a bank and match up the required mortgage loan rates that are on offer. While you discuss your rates with the bank, make sure that you always explain everything in detail and make them understand as to what all do you need and what are your expectations pertaining to mortgage loan rates. Chances are that you might be willing to transfer other investments or accounts while exchanging rates at a much lower price.

It’s better to Change Lenders

 The mortgage renewal time is probably the best time to choose to switch loan lenders as the question of penalty does not arise anymore. The best way to deal with it is shop around for more rates; through such an act, you will be able to gather substantial idea about the exact renewal time and then make the final decision.

Deal with a Broker

 Real estate negotiations are most often carried out through real estate agents; so you should be able to make a smart choice. While you have to do substantial amount of research and put in efforts, hiring a proper broker is of much help as they can take the onus on their shoulders. Alternatively, they will also be able to guide your through the process of negotiating mortgage as they are professionals in the field of finances surrounding real estate.

About Sampurna Majumder

Sampurna Majumder is a professional writer who enjoys creativity and challenges. Barely a year into new media, she has written several posts, articles and blogs for prominent websites like 99acres where one can find any information related to real estate. The above post throws light on mortgage loans.


  1. I am not an illegal and I am not a resident. But, I do have a social security number. Would I be capable to apply for a mortgage loan? Thank you for any answers.

  2. I have been trying to get approved for a mortgage loan for a while, and I really frustrated, I have good credit, my score is 730, but I’m only 22 and I’m in school full time so I only work 25-30 hours a week which is not considered full time and makes my income seem low, but I have been paying rent (never late) for a long time. If someone can pay rent and afford it why can’t they get a mortgage loan. I do not have a co-signer. Is there anywhere I can get a loan!!!??? I’m not looking for advice on why I should just keep renting, (not trying to be rude but that is what happened last time I asked this question) I am looking for an actual answer, the people I have talked to so far have just been so inconsiderate. One lady told me to re-apply after I graduated college and got a full-time job. I just want a mortgage loan, I just do not understand why I cannot get one. I have money to put down but that doesn’t eben seem to matter! If anyone knows where I can get a mortgage loan please please let me know. Amd rural development is not an option they said my income was to low.
    The reason I feel I could afford a mortgage is because my rent is higher than other peoples mortgages that I know and I have never been late