No matter if you're going for your first Hawaii mortgage or are a long time veteran of this game, there is no shortage of good tips for helping you score some low rates, and hold down total overall costs for your mortgage. Most of the tips are short, but can save you long money!
The first tip is this - just like when buying a car or anything else, shop around before you buy. Talk to many different lenders before deciding on just one. There is loads of competition between lenders today, especially in this kind of economy. But one thing about having squeaky-clean credit is that regardless of the economy, people want to do business with you, and they will go to war with the competition for it. This means you can find some pretty fantastic deals.
A lot of people use mortgage brokers in these situations, but it's always a good thing to know who you're dealing with, so be sure you are aware of who they work for and how it is they get paid. You need a broker with access to many lenders and who doesn't get all his money from any one lender. This gives you a better chance of having your interests put first and not the financial rewards of the broker.
Keep an eye on that PMI! This is 'Private Mortgage Insurance', and most of the time comes required if your home equity is less than 20%. This is a type of insurance policy with protection for the lender if you don't pay the note. This is also one of the various reasons to strive to make the biggest down payment you can. If all you can afford is 18% of your purchase price, then request the lender throw out the PMI. This rule about the 20% is not chiseled into stone, and some lenders are willing to work with you if your track record is good, and your credit is in good standing.
The next thing you want is a list. Have a list made of all fees and associated costs in connection with the mortgage. Never be backward about questioning fees and asking about them being lowered. Of course typically, you probably won't get them all changed, but it may surprise you how much you can save here just for asking. If a fee seems too high, or just not right somehow, challenge it. You shouldn't allow what gets saved in your interest to get swallowed up by outlandish fees.
Once you've found the right rates and terms for yourself, then lock that baby in. Be sure to always include all parts of the mortgage in writing, no verbal agreements should be allowed. The rates of interest are subject to changing overnight, and you can find that fees may go up mysteriously when you get to the final signing of your papers. Lock in the rates and associated fees now, and you can stay away from dealing with it all over again when it comes to closing.
