May 30, 20263 min read
Homebuyers often hear a rule of thumb, but prime mortgage underwriting is more detailed than that. Mortgage rates are often negotiable within a lender's pricing framework, especially when your application is strong and competing lenders are offering comparable products.
Where borrowers get tripped up
Here is what matters most:
- Bring comparable quotes that match the same term, amortization, loan type and features.
- Ask whether the quoted rate is the lender's best available discretionary pricing or simply its posted rate.
- Do not give up valuable prepayment or portability features for a tiny rate reduction without calculating the trade-off.
- At renewal, start shopping early enough that you have leverage instead of accepting the first renewal letter.
A broker can often negotiate by placing the application with lenders that are actively competing for that type of mortgage.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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