Are 30 year fixed rate mortgages negotiable with lenders?

Answer 1

If the rate isn't, then you can do something about the time. By that I mean cut off years, and thousands of dollars, by simply adding a hundred to two or more to the payment each time.
I also like to send in principle only payments if I get a tax refund, or when my second monthly check comes in.
You say you can't? Well sure you can, you just have to decide if you want to save the interest and time in the end, and quit spending money on junk stuff.
Get a mortgage calculator for any search program, and play with the numbers to see what you can save, and how soon it would be if you dedicated that new raise this year back into the loan.

Answer 2

They are negotiable to a point. There is a break even rate (PAR) that the lender 'borrows' at. If they lend at the same rate, the bank has not made ANY money on the loan. So, depending on how important rate is to you, you will be charged POINTS (aka pre-paid interest) to get the rate you want - you can only 'buy down' the rate if you are willing to pay the points, or you can pay origination fees.

Every lender has different policies, some banks offer no fee loans - but the rate is slightly higher. While other banks offer better rates and charge an origination fee. Points are NOT lender fees they are directly tied to the rate. Most loans today do not require POINTS to be paid.

Bottomline, the mortgage professional you are working with should be able to explain how they are structuring the loan and WHY. The bank is going to make a little money (and I mean a little) and offer the best loan they can to earn your business. (or they should)

Hope this helps,

Answer 3

Valspatrick is right on the money here. I am given a booklet of 16 pages every day that shows interest rates for all of the programs my bank has to offer. Each page shows the cost or profit that would come from offering each rate.

My 30 year fixed fannie mae conforming sheet could show 5.25% at a 4% cost (4% of mortgage balance paid at closing)
or 8.125% which would actually pay me an additional 2.125% if you took the loan at a rate that high. there are also adjusters that can affect your rate on this particular product, like:

1. Loan to Value... will you be borrowing over 80% of the value of the home?
2. Credit Score
3. Will you be splitting the loan with a HELOC to avoid PMI? there is a hit for that.
4. Will you occupy the residence?
5. Are you taking cash out if it's a refinance?

Since I get paid based off of volume and not points or origination fees, I hardly ever lose a deal do to interest rate. I work for Chase because they are consistantly rated in the top 3 for best priced mortgages and lowest closing costs.

I'm licensed nationwide and would be more than happy to provide you with any information you need to make a decision on a loan.

CaseyCasperson.com or [e-mail]

Answer 4

In some very limited ways. Mostly if you have extremely good credit, you have a little more room to get a few tenths of a percent. If you are subprime there is almost never any negotiating room, especially in today's mortgage environment.

The reason are that most loans are "conforming" loans. They are made within a very set amount of requirements for types of property, type of credit, equity, interest rates and downpayment requirements, and all of those loans are generally grouped or "bundled" together to be sold to large institutional investors like banks or insurance companies or retirement funds. These mortgages can be bought and sold because they are all almost identical to each other. Also mortgages that have Private Mortgage Insurance almost always have little or no negotiating room.

Where you have more negotiating room are in "nonconforming loans." especially those loans that are at 80% of a property's value or less. That is because there is so much security in the property that many banks are more willing to compete for those loans.

Also you have lots of negotiating room if you are talking to a bank about buying an REO (Real Estate Owned or foreclosed property) for instance where the bank is willing to offer you the financing as a way to get the real estate off their books. Many banks are willing to give excellent terms to get rid of this deadweight on their profit lines.

Answer 5

I've not found it to be. Each lender has their own criteria which depends on your credit, the house, etc. and rarely will change the rate, but it can't hurt to ask. Besides, if you find a better rate, go with them instead.

Answer 6

Rarely. The rate is what it is, and unless you have a rate from another competitor that shows a lower one that they can match (and they WILL ask to see documentation of it), or you have done alot of business with this company in the past...don't expect it.

Answer 7

yes and the better your credit the better the price.
the more you put down, the better your rate.
plus you can refinance in a few years when rates change again.