The Finance Blogger

Mortgage mistakes nearly half of borrowers make

Mortgage mistakes nearly half of borrowers makeDid you pay too much for your mortgage on your home? If you don’t know the answer then you probably did. The majority of Canadians and Americans don’t shop around for a mortgage when they purchase a home. They often take the rate that is offered by the bank that they deal with. They pay whatever rate is offered to them. At the very least they should negotiate and try for a better rate. They should really shop around to either confirm that the bank is offering the best rate. They can use this information as a negotiating tool to get a better interest rate for their mortgage. This post is about Mortgage mistakes nearly half of borrowers make.

Most consumers do not realize just how much money they can save. In fact shaving half percent off the cost of your mortgage can save over $25,000 over the lifetime of the mortgage. Consumers will put a lot of thought into the choice of their home, the decoration, and the landscaping. But when it comes to go negotiating a mortgage and going through the mortgage process they find it very intimidating.

Mortgage mistakes nearly half of borrowers make

if you have a good to excellent credit rating, can put at least 20% down as a down payment on your home, your chances of negotiating a better interest rate on your mortgage are very high. For example if a borrower accepts a 4.5% interest-rate instead of a 4% interest-rate on an average home the costs approximately 321,000 with a down payment of 20% on a 30 year fixed rate mortgage loan they’re going to pay $212,000 in interest. however if they are able to negotiate a 4% interest-rate they will save over $27,000 over the life of their mortgage.

This is a substantial sum of money that most people really cannot afford to lose however many are doing it every day without even knowing it. Always shop around for a mortgage and always try to negotiate a better rate. The worst that can happen is that it confirms the rate that is being offered to you by your bank and the best that can happen is that you get a better interest-rate saving you thousands of dollars.


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