Can the mortgage rates be negotiable?

[LeoJohnson]

Doubt that you can tell your bank what you will pay but that doesn't mean you can't shop lenders to find the best rate. With the economy in the current state I would opt for a 30 or 15 year fixed rate but that is just me hedging my budget options

Thanks for the information

 

[LeoJohnson]

No rates are determined by credit score and loan amount. % you put down etc. Call a mortgage broker - we beat the big banks and rates just dropped to their lowest levels yesterday . Where are you buying?

In Canada

 

[LeoJohnson]

If you can accurately predict interest rates you'll pass Buffett and Gates.

 

[pfg1]

I can't say about Canada, but in the US - yes mtg rates are negotiable. There is not just one rate, there is a slew of rates up and down below the par rate, based on what the lender wants to make on the loan.
I was a broker for years. It was easy to adjust the rate to beat the competition, if I felt I was ok with earning a little less $. Also the client can "buy" their rate down, essentially paying points to lower the rate. (the company makes the money from the points, rather than built into the loan pricing). Wholesale rates on any given day go up and down, and the lenders price accordingly.

 

[Steven P]

there is a wholesale mortgage rate, and a retail rate. Consumer pays the retail rate, there is a substantial spread. This is how, many times a mortgage broker can or will pay some closing costs, come out of their profit.

 

[Steven P]

I've never found rates to be negotiable, maybe if you deal with a large bank on a multimillion $ loan. You might want to check out Pentagon Federal Credit Union; I went with their 15 year adjustable rate mortgage and they paid $10,000 of my closing costs.

They paid the 10k out of the spread from wholesale money to the retail they charged you, yes rates are negotiable, I have done it. Know what the wholesale rate is and like buying a car, let the dealer work for your business, they are going to make plenty of money!

 

[Tahoe Ray]

Of course, this is quite possible, this business is very risky and unpredictable. You need to be a real expert in this regard in order to understand all the details of this business and not get into a debt hole that will last a lifetime.

Links on this site are no-follow FYI.

 

[marindependent]

Mortgage Rates can be negotiable if you are taking on a $10MM loan or if you are a medium sized corporation - but for the average Joe. Ehhh, I dont' think so.

 

[hanry miller]

Yes, you can try to negotiate the interest rates presented by the lender. Generally speaking, well-qualified borrowers have more negotiating power than those who are marginally or poorly qualified for a home loan. You can also use prepaid interest points to negotiate a lower mortgage rate from the bank. A mortgage accelerator is a practice of paying off a mortgage loan faster than required by terms of the mortgage agreement. You're protected from higher rates, but you won't get a lower rate, either.

 

[Makimuzu]

It depends on the amount of money you wish to borrow and the interest rate you desire. Banks will usually agree to negotiate if you're taking a large amount of money. However, you must know how to do it correctly. It's easier to negotiate if they see that you're good at this sort of thing and know what you're doing. I'm sure you won't be disappointed. When my grandmother wanted to make a reverse mortgage application, she went to one agency, and they helped her. So, yeah, a lot depends on you.