Can the mortgage rates be negotiable?

[rousemark]

Florida

You bought the State of Florida?

 

[PrivClientSG]

I'm learning a TON about the mortgage game. There's so much that goes on behind the scenes with mortgages being bought/ sold, etc.

With all this craziness, I just had the thought, are mortgage rates negotiable?

I've called around a bunch the past couple days shopping for the best rate. I've been quoted several different interest rates for the exact same loan. 2 specific examples are 4.375% and 4.25%.

So my question is this, are the rates negotiable? What happens if I walk into one of these local banks and tell them that I'll only pay 4%? Do I get laughed out of the bank? Are mortgage originators allowed to adjust rates?

Also, should I go with the three years fixed rate mortgage or with the variable rates?. Are we going to see a rise in the interest rates anytime soon?

To some extent, yes, not only the rates, but the terms and conditions are negotiable. To a lesser extent in the residential marketplace, but in the commercial marketplace, absolutely. In the residential marketplace, the larger the mortgage, the more likely you'll get some "discussion" with the bank. As far as what term to go with now -- absent of all details and facts -- rates are expected to come down at some point in the next 24 months, but that can change in an instant. Even if they tick up from here, does that mean you should lock in? Locking in removes interest rate risk. Is this where you want to remove that risk? And if rates do come down, are you going to re-finance?

On every one of my commercial properties, I not only had my mortgage person "shop" -- but I also negotiated rate, terms, conditions, etc. In almost every case, I had pre-payment penalties removed, added a re-cast or partial re-amortize, etc. Ask, keep asking, and keep asking. LOL.