There are many people around the world that are finding it tough financially. With the present state of the economy the stress of finances is enormous. Many people are looking for free financial tips so that they can get back on track financially. You may be interested in this article if you are looking for financial advice.There's no such thing as a free lunch, and that especially applies to supposedly free financial advice. Here's how to spot them so you don't get stung.


Thursday 17 March 2016

Ways Of Negotiating For Favorable Mortgage Interest Rates Memphis

By Ruby K. Abernathy


Owning a home is one of the most important goals in life. Negotiating favorable mortgage interest rates Memphis is quite difficult because only prospective home buyers who meet certain requirements are considered for loans. These requirements need to be in the public domain so that the customers can use them to their advantage when negotiating for affordable charges when buying property

The credit score is calculated basing on the ability of customers to repay their loans. Those with a history of repaying early are more suitable for favorable rates compared to those who took long to repay them. It is therefore their responsibility to ensure that their loans are paid fully and on time to boost their chances of earning mortgages in future.

Financial stability is one benefit of long term employment and this is helpful when one wants to qualify for a home loan. This will show that their income flow is stable and therefore are in a position to repay any debts they might have. One should make sure he has his up-to-date employment record when seeking a mortgage because it will help them during the negotiation.

The debt-to-income ratio is also used to determine the suitability of customers for favorable charges because it shows their ability to pay off their creditors. Those whose ratio is low are favored and therefore customers ought to ensure that they are in a position to negotiate for lower values owing to their impeccable debt status.

The amount of down payment the customers makes greatly determines the interest rates they receive. Generally a twenty percent down payment must be paid but any extra amount will help lower the interest. They therefore need to ensure that they have more than a fifth of the value of the house to qualify for low charges.

The size of the bank account of a customer is also factored in the negotiation. Being in a solid financial situation by having a good bank balance puts one in a favorable state for negotiating lower values because it shows that they can pay their mortgages without straining or even defaulting.

The current economic condition can also have an influence on the interest payable. Cheaper rates can be negotiated when the economy is in uncertainty and a lot of people are selling their homes. In such a situation, the properties can be acquired cheaply and this means the customer will spend less money acquiring them. A glut lowers the value and prices of property. Knowledge on how mortgage rates are is important.




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