Ever played chess? checkers? poker? Well negotiating your interest rate can be the same kind of game. It’s a game of strategy, planning, calculating and stubborn will. The first thing you need to do in this game is know what cards you hold. This means you will need to know your credit rating, how much money you have to put down and how much you can afford. With this knowledge you are armed and ready to start your negotiations.
Many people end the negotiations before they even really start. They believe they can get no better and they don’t even try. Don’t cut yourself short, you will be paying for it for a longtime. The worse any bank can say to you is no, once you realize that, you can go into your negotiations with confidence. There are plenty of banks and other lenders that are in the business of making loans.
Never take the first offer, look at the whole thing, read it and make sure you understand it. Then start your negotiations. The interest rate will make a big difference long term, so negotiate your interest rate as much as you can. The more money you can put up front, the better interest rate you may be able to negotiate. If they aren’t willing to negotiate down to what you want, negotiate with another bank.
