How to Change Your Mortgage

Chrisdavy
Chrisdavy, Yahoo! Contributor Network
Dec 23, 2009 "Share your voice on Yahoo! websites. Start Here."
There's no reason at ALL to feel stuck with your current mortgage rate, no, not even your credit score -- you probably just haven't had the right resources to put it all together for you. All that foreclosure talk shouldn't scare you - Obama's seeing to that. Here's how to Change Your Mortgage.
  1. Step 1
    • COMPETITION IS FIERCE. You don't necessarily have to change lenders to get a better rate. The secret of negotiation is simple - it's never being afraid to walk away. That strength comes from research - simply calling other mortgage companies and credit unions to see what they're willing to offer. It's that simple. It will come through in the tone of your voice, the questions you ask, and the paperwork you present. Again, don't be overly concerned about your credit score. Credit companies spend billions in the hopes of making you believe that is the only number that matters. It isn't. Again, don't let the foreclosure talk scare you. It's BS. If you run into big, real trouble with foreclosure, just write the appropriate parties that you have an extenuating circumstance. Most likely you do. This is your HOME. Fight for it. Fight for YOU.
    • Step 2

      KNOW YOUR FIGURES. Use the resources of an up-and-comer who wants your business. One example is the Mortgage Calculator at Alliance Lecester at http://www.alliance-leicester.co.uk/mortgages/Affordability-Calculator.aspx -- you can calculate your entire borrowing power there. There's more -- just Google "mortgage refinance calculator" to get as many as you want. I also trust LendingTree. Remember, if you're refinancing, you are starting a whole new loan -- so you need these figures. Put them in as if the money from the first loan is completely paid off. Mortgage refinances are different from loan modifications. We'll have another article on that.

    • Step 3

      CONSIDER FEES. Remember the fees you have to pay -- the termination fees, government fees, valuations, and possible legal expenses. However, fixed, current fees are almost always better than long term, interest based fees. If you can, take the hit now rather than later, over the entire course of the rest of your life. Again, ignore the foreclosure talk. It will come.

    • Step 4

      HOUSE = CELL PHONE = CAR. There are many deals available, too varied for the scope of an eHow article, but the basic premise is this: When something better is offered by the government or necessitated by competition, the company won't tell you about it. You have to ASK. And that can be done quite simply -- Call and ask, "Am I getting the best rate possible?" Then stop, listen, take notes, because they will probably bury themselves. Ask about "negotiable local and internal fees." You can do this for a cell phone, and the same tactic works even for a house mortgage.

    • Step 5

      RESPECT. After you have their respect because you have done your OWN due diligence, they will fight to keep your business. At this point, you should ask about variable vs. fixed loans, short vs. long term, and his opinion on various other things. Once your agent realizes you are not someone to be taken advantage of, he or she will more than likely offer you the best programs. Keep the second credit guy or company on speed dial just in case you don't hear something you like.

Published by Chrisdavy

AC's licentious, guilty pleasure. What can I say? I write about sex and money. You know, the important stuff. Giggle. (But I do it so well!) Fashion, too. LOL  View profile

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