Before You Renew Your Mortgage
Most homeowners receive a renewal offer from their lender a few months before their mortgage term ends. For many people, the easiest option is simply to sign the paperwork and move on.
What many homeowners do not realize is that renewal is actually one of the best opportunities to review and improve their mortgage.
Lenders often send renewal offers that are designed to be convenient, but they may not always reflect the options that are available to you at this time.
A quick review before renewing can help you:
• Compare rates and options across multiple lenders
• Adjust the structure of your mortgage
• Consolidate debt
• Plan ahead, rather than making a last minute decision
Even if the best option is to stay with your current lender, it can be helpful to confirm that the renewal terms make sense for you.
Renewal is also a great time for homeowners to refinance their mortgage. You might consider refinancing if you need to consolidate higher interest debt, such as credit cards or loans. Refinancing can also be helpful if you are planning a large purchase or renovation.
Because the mortgage term is ending, it is possible to refinance and make these adjustments without paying the penalties that would otherwise apply if you refinanced mid-term.
Ideally, these discussions occur a few months before your renewal date, providing you with enough time to thoroughly explore and understand your options.
Quick question for you. Do you know when your mortgage renews?
