Negotiating Your ARM Mortgage Loan

You, the borrower, must be prepared to negotiate with a lender in order to secure the best ARM mortgage loan

Step 1 - Talk to the Right Person

If your ARM mortgage loan has been denied, don't waste time talking to your lender. Find out the person, or company, that is managing your defaulted loan in order to begin the negotiation process. This group is usually called the loan loss mitigation department.

Step 2 - Be Smart

Know what you are talking about. You want a low principal with the lowest interest rates possible. Your lender wants to make money. Be able to defend yourself and explain how you can be a profit to the lender. Be comfortable with the right terms, such as interest rate caps and indexes, and know what the words actually mean for you.

Step 3 - Be Realistic

Go to your lender knowing what to expect. You might be able to negotiate your interest rate, your interest rate cap, or your down payment by a certain amount, but gigantic changes probably will not occur. Know the low rate that you are negotiating towards, but be willing to accept something a bit higher.