Q:

How do you negotiate a low mortgage rate?

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Quick Answer

Negotiating a low mortgage rate is done by shopping around for different quotes, seeing if the lender would be willing to take less commission and asking which rate pricing adjustments were made to the loan, according to U.S. News & World Report. Borrowers with good credit are often better able to negotiate a low mortgage rate compared to those who don't have good credit.

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Full Answer

Shopping around for different mortgage quotes offers borrowers the best leverage in negotiating their rates, notes U.S. News & World Report. Banks, credit unions and mortgage brokers offer mortgages. Items that should be compared on offers include associated costs and closing terms.

A mortgage rate can be lowered if the lender is willing to take a cut in commission, which is common for borrowers with the right assets, the ability to document their incomes and those who have good credit, according to U.S. News & World Report.

Knowing which fees were added to calculate a rate helps borrowers negotiate a lower rate, notes U.S. News & World Report. Extra fees can be added for lenders who don't have substantial down payments. Additionally, knowing basic mortgage jargon can also reduce a borrower's chances of being taken advantage of.

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