How to Negotiate Paying Your Home Once You Have the Cash
- 1). Secure a payoff statement from your bank. The statement shows all of your fees due along with the principal amount as long as you pay by a certain date. Analyze this statement and gain an understanding of every detail of payoff conditions.
- 2). Determine the current average mortgage rates in your state and compare them to the rate on your loan. If the rates are much higher now compared to your loan, the lender may be more willing to negotiate to pay off your current low-interest mortgage. This is because they can then use those funds to lend to another homeowner at the higher rate.
- 3). Call the lender's payoff department to discuss your payoff options. Ensure that you have the right department at the lender before you start trying to negotiate the final payoff amount --- it is unlikely that general customer service will be able to assist you with this matter. If you have a contact in mind who has helped you with the loan in the past, he may be able to help again.
- 4). Mention the current rates compared to your loan's rate, if it is much lower than current rates, and you believe this may help your negotiations with the lender.
- 5). Discuss your ability to continue regularly monthly payments on the mortgage. If the lender has reason to believe that you may not have the ability to continue future on-time payments in the future, the bank may be more willing to negotiate for a full lump-sum payment now. For example, if you have a temporary position that may or may not convert to a permanent position that could work as a negotiating point in your favor.
- 6). Ask the lender to remove or reduce late fees associated with the loan from the payoff amount if applicable.
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