You're nearing the end of your first mortgage term and may be wondering "What's going to happen next?" Not to worry, there's help! You'll want to start looking at things as early as 4 months before your mortgage is up for renewal.
Is it that time that your need to renew your mortgage, well this is an excellent opportunity to improve your rate and alter your monthly mortgage payments.
While most lenders will send you a renewal letter when there are around 3 months remaining on your term. The majority of homeowners will simply sign and send back their renewal without ever shopping around for a more favorable interest rate. I recommend to all my clients to shop around a few months before their current term is up. Even if you end up going with the same lender, you still want to be sure that you are getting the best rate.
What are the Benefits of Renewing Your Mortgage:
- ★ Reduced Debt: When you renew your mortgage, you are only going to be applying for the amount that is still owed.
- ★ Altered Monthly Payments: Your new loan is probably going to be much smaller than the original loan, and you might be able to negotiate with the lender to alter your payment plan.
- ★ Better Interest Rates: You should be excited to renew your mortgage simply because you will be in a much better position to renegotiate on the interest rates.
Interest rate savings can help you to pay off the principal on your mortgage at an earlier date. Don’t miss the opportunity to align your mortgage with your current lifestyle and with the realities of the housing market.
When you sign for a new term you are signing for a new mortgage contract. Therefore this is an excellent opportunity to rethink your finances and make progress toward your long-term goals.