Even if you already have a low interest rate on your mortgage, the amount that you’ll pay in interest over the life of your loan can be substantial. Many homeowners mistakenly think that once they’ve received their mortgage there isn’t anything that they can do to lower their interest rate. However, this is not necessarily true.
It is very possible to lower you current interest rate provided that you aren’t behind on any payments and have a good history with your lender. With mortgage rates currently hovering just above historic lows, if you’re interested in reducing your interest rate, now is as good of a time as any to do so. The following are some suggestions on how to get started.
Refinancing
If you’re stuck with a locked-in interest rate or your lender refuses to consider you for a lower rate, then you might want to look into refinancing your mortgage completely. Refinancing is the process of taking out a new mortgage loan that’s then used to pay off the existing mortgage, and provide the borrower with a lower interest rate than the original loan.. Refinancing is still a really good idea right now for those looking to refinance to a cheaper deal. Though slightly up from the previous weeks, mortgage rates are still at very attractive levels for those looking to refinance or buy a home with the national average for the fifteen year fixed last week reported at 4.36% with a 0.6 point. You can choose to refinance at your current lender or choose to go with a different one that will offer you a better deal.
Negotiating with Your Lender
Another way to get your lender to reduce your interest rate is simply to talk to them. Contact a loan officer at your bank or lender and arrange a meeting. During the meeting be sure to point out your good payment history (especially if you’ve been paying more than the minimum payment) as well as mention that interest rates are low elsewhere if that is the case. Present a fact-based case, but be careful not to seem desperate. If you’ve been making timely payments and are in good credit standing, then it’s very likely that your lender will do what they can to keep you happy.
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