December 07, 2001

By: Bev Dodd
Website: http://www.family-refinance-consolidation-loans.com

Mortgage loan rate: The best in rates and lenders

Lenders are ready to negotiate a better deal for you, on your mortgage loan rate. Conventional fixed-rate loans offer you a set mortgage loan rate and payments that do not change. We'll discuss this more below.

Mortgage loan rate lenders must compete for your business. This means lenders are ready to negotiate a better deal for you, if you are a good candidate to be a homeowner. Do not assume that the mortgage loan rate that is quoted at first is the final interest rate and be prepared to ask lenders for a better term. Every little percentage point that you pay less for your mortgage is going to save you a lot of money over a 15 to 30 year period.

A conventional fixed-rate mortgage loan rate offers you a set rate and payments that do not change throughout the life or "term", of the loan. A conventional loan is fully paid off over a given number of years, usually 15, 20 or 30. A portion of each monthly payment goes towards paying back the money you borrowed, the "principal", and the rest is "interest". Any money paid into the value of the house, including your down payment, is known as "equity" in the home.

A temporary buy-down on a mortgage loan rate is achieved by lowering the rate for the first few years, starting out at a lesser amount and gradually rising to the original loan rate. Of course, because the mortgage loan rate is lower for the initial few years, so are the payments. To make up this loss of funds to the lender, the buy-down usually consists of extra monies paid up front to the lender when the loan closes. In return, the lender will let the borrower "qualify", or meet the criteria for the loan, at the new, reduced rate.

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About The Author:

Bev Dodd is a successful author and publisher of http://www.family-refinance-consolidation-loans.com.  Many have commented that her website offers the best recommendations, links and information on loans, mortgages and financing.