Corporate housing represents an affordable way to gain access to furnished apartments and homes located on prime property. However, mortgage rates these days can be unusually high, especially for the corporate sector, which is why it is important to locate affordable rates. With a little bit of research and knowledge, it is possible to find affordable mortgage rates for your corporate home.
Mortgage rates are largely dependant on the lending institution. For all lending institutions, the mortgage rate will be based on prime lending rates. The lending institution adds its own points to this prime rate after which the final rate is determined. These points are nothing but percentages of interest, which are compounded with the prime rate to arrive at the final mortgage rate. Since the mortgage rate varies vastly across lenders, it is imperative to shop for rates online and do a comparison before deciding on a particular lender.
Every lending institution is obligated to furnish customers with free quotes on the mortgage without any obligation on the customer to purchase the mortgage. In terms of corporate housing, the Internet is flooded with lenders who will furnish you with quotes upon request. Make sure to receive as many quotes as possible and then do a comparison of the rates across lenders. When requesting for a quote, make sure to furnish comprehensive information and the same information to all the lenders. This enables easier comparison across quotes.
Bank and Credit Ratings
Mortgage rates are primarily determined based on the borrowerâ€™s credit history as well as rating. If your rating is not sufficiently good, you are likely to receive higher rates from the lenders. It is a good idea to seek a mortgage from the same bank where you hold an account. If you already have loans with this bank and have had an account with them for several years, it is likely the bank will provide you lower rates compared to other lenders.
At times, it is also a good idea to check for rates on corporate housing with lenders who are competitors with your bank. These banking institutions would be more willing to reduce their rates to land business with rival clients. They might also require you to move all your regular transactions to their bank. Since this is a saturated and highly competitive market, it is very likely that your current bank would be ready to re-negotiate its rates to retain your business. When you reveal the rates offered by the competitor lender, your current bank might reduce rates substantially, thereby helping you get access to affordable mortgage that is wallet-friendly as well.