Renew Your Mortgage

Following the initial term for your mortgage, you could still owe quite a bit of money on your home, and that is when you will need to consider a mortgage renewal. Renewing your mortgage will provide you with an excellent opportunity to improve your rates or alter your monthly payments.

Basics of a Mortgage Renewal

When you first apply for a home loan, the initial payment period could only last for a few years, and that might not be enough time to completely pay off your house. As the first mortgage comes to a close, you will most likely need to apply for a mortgage renewal. While some homeowners stay with the same lenders, you should take a look at other lending institutions to see if you can get better rates.

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, and that means you won’t have as much outstanding debt in your name.

• 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: Many people look forward to renewing their mortgages simply because they will be in a much better position to renegotiate their interest rates.

Requirements for a Mortgage Renewal

As long as you have made your monthly payments on time and your financial situation has not changed, you should qualify for a mortgage renewal through multiple lenders. Lending companies often love to work with those who are in search of this type of mortgage product because they already have equity in their homes.

What to Expect

By law, your current lender has to send you a renewal notice at least 21 days before your current mortgage is up. While it might be tempting to take that offer, I usually suggest that my clients begin shopping around at least 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 rates. During your initial consultation, we will discuss your financial goals as well as the current state of your finances. If you would like to make changes to your mortgage, then we can take a closer look at some of the wonderful lenders.

Where Do I Go From Here?

Renewing your mortgage is going to provide you with an excellent opportunity to rethink your finances and make progress toward your long-term goals.