When Your Mortgage is Approaching

The Renewal Date It’s a Good Time For A Mortgage Checkup.

When you get within a couple months of the maturity date for your mortgage term, your bank will likely reach out to sign a renewal agreement. Before you do that, it’s best to first look into what options are available to you. In many cases your lender may not be offering the lowest rates available, as they are counting on you to simply sign a new term or click on their early renewal offer. The difference between what they’re offering and what is available elsewhere could be significant over the course of a new term.

Something else to consider is what your new payments will be. If rates have increased considerably from the time you setup your mortgage till now, you may want to know what options are available to lower those payments, such as extending the amortization to keep payments affordable. Doing this at your renewal time will avoid having to break the term later on and incur a penalty.

While there are certain costs involved in moving the mortgage, most of these may be absorbed by the new lender in order to get your business. For example, the legal costs and, if necessary, the appraisal costs are often covered. That makes switching lenders far more appealing, especially when you factor in a more competitive rate!

It generally takes a few weeks for a mortgage to be approved and moved to a new lender so don’t leave it till the last minute. Most lenders will reach out to you well in advance of the maturity date so you should have plenty of time to make a decision.

Remember, don’t be too quick to sign back a renewal offer. Contact me to discuss what rates are available for your situation.