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Rate Control

Can I do anything to get a lower mortgage rate?

Of course, to a certain extent mortgage rates are tied to federal financial policy. Out of your hands. But that doesn’t mean there aren’t favorable products and procedures you can use to land the best rate possible. For instance:

ARM YOURSELF.

The adjustable Rate Mortgage (ARM) is one way to ensure a lower mortgage rate for the first few years of your loan. While the typical ARM adjusts every year, newer products have 3, 5, even 7 year periodic adjustment schedules.

BE QUICK ABOUT IT.

Some lenders offer an incentive for closing on the fast track, say 30 days or less.

LOCK YOUR RATE.

Since rates are currently just about as low as they’re likely to go, try to lock in your rate to anticipate rises.

GET THE BEST OF BOTH WORLDS.

Certain recently developed financial products will lower (Float Down) your rate if rates fall, but maintain the status quo if they rise.

USE POINTS TO YOUR ADVANTAGE.

By paying more points at the origination of your loan, you may be able to negotiate a better rate over the life of the loan.

CAPITALIZE ON YOUR GOOD CREDIT.

Being careful with your credit might reward you in your negotiations for a loan. If you have an A-1 rating, use it for leverage. Try to get the lender to lower closing costs, or reduce fees for support services such as document prep. Don’t be bashful. Just ask for a list of lender fees which apply to your loan… and ask if one or more can be waived or reduced to reward your superior credit standing.

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