Many banks are looking to take advantage of the lowest interest rates ever recorded. Today’s 3.94% interest rate drops below 4% in 30 years.
Banks also offer incentives to buyers to get them off the fence.
These incentives are available in the following categories:
– Lowering rates
– Waiving certain closing costs
Discounting fees as high as.75 percent
Offers a “we’ll beat any price” deal
If rates fall in the near future, some refinancers will waive the majority of their costs.
These incentives could have a hidden catch.
You must have at least $10,000 with the bank’s investing arm to be eligible for these rates. Others charge a wide interest rate.
Finding the lowest interest rate possible is the best way to save money on a mortgage. It will save you money over the life of your loan, more than paying a higher interest rate or other fees.
You can negotiate for a lower rate by keeping your eyes open for opportunities.