How Do I Negotiate My Interest Rate With A Bad Credit Mortgage?

If you currently have bad credit and would like to negotiate your interest rate, start by knowing your credit score. Even if your credit score is still not the best, many lenders are still able to provide options that will be helpful in saving you money on your bad credit mortgage loan.

How Do I Negotiate My Interest Rate With A Bad Credit Mortgage?

The first thing that your should do is to comparison shop for the best offer on interest rates on your bad credit mortgage loan. You should expect to be spending a lot of time researching and making phone calls to get the best deal for your situation. Furthermore, you should contact your current lender first, as they are more willing to negotiate your interest rate in order to keep your business.

Don’t Be Afraid To Play a little “Hard Ball”

You should never approach any lender by being rude and impossible to deal with. However, you should stand strong in your position, while being able to “wheel-and-deal”. More importantly, it is perfectly okay to let the bad credit lender know that you were offered a lower interest rate by their competitor. Hopefully, they will lower their initial offer to an acceptable level. If they don’t, then don’t be afraid to simply walk away.

What Else Can I Negotiate With a Bad Credit Mortgage?

Not only is the interest rate negotiable with a bad credit lender, but some of the fees are as well. Especially if you are refinancing with your current lender, you can request them to waive the appraisal fee, credit check fee, and the title search fee. Most importantly, you should also negotiate the other “out-of-pocket” fees that will be charged for the bad credit mortgage loan. Such fees consist of document preparation fee, points, and the lender’s attorney’s fee.

*Affects pricing. With the No Closing Cost Option, borrowers finance the closing costs instead of paying for them at closing. Borrowers who pay closing costs at closing may qualify for a lower interest rate. Some upfront fees (ex. credit report and appraisal) may apply and may be credited at closing.

*Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly payments and the total amount paid when compared to your current situation.

How Do I Negotiate My Interest Rate With A Bad Credit Mortgage?