How to Negotiate Interest Only Mortgage Rates

Finding good interest only mortgage rates is a critical part of the process of selecting a mortgage. When you sign up for an interest only mortgage, your entire monthly payment is going to be the interest on the loan. This means that your rate is going to have a large affect, as it determines the full amount of your monthly payment. You need to make sure that the rate you agree to is as low as possible. When shopping around, here are a few tips for negotiating an interest only mortgage rate.

Use Other Estimates

One powerful negotiation tactic is to use other estimates as leverage. You need to get several estimates for interest only loans from different lenders. When you find a lender that you want to work with, you can show them the other estimates and use them to negotiate a better rate. 

Be Persistent

When you need to negotiate a better rate, one of the most important things to do is be persistent. When you give up easily, they will usually take advantage of you and charge you a higher rate. Stick to your guns and be persistent with your requests. 

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