Using an ARM mortgage loan is one of the best ways to save money on your mortgage payment. With an adjustable rate mortgage, you can expect to pay less than the ordinary rate for a 30-year fixed rate loan. While the rates will be lower than a fixed loan, you can still usually get them to go lower. Rates are typically negotiable and if a lender wants your business badly enough, they can come down on the rate. Here are a few negotiation strategies to keep in mind.
You do not want to come to the negotiation empty-handed. Yes, you might want a lower rate than what they are offering, but if you have no reason for them to give it to you, they will not give you what you want. Get several estimates from different lenders and bring the one with the lowest rate into your negotiation. This will show them that you are shopping around and someone is cheaper than them out there.
In addition to bringing other estimates to the negotiation, you need to stand firm in your desire for a lower rate. Do not give in to them the first time they tell you no. Be prepared to walk away from the deal, if they do not give you what you want. It is very important to have a plan B before you walk away.