Understanding Mortgage Renewals: What Homeowners Need to Know
While some people are out spring shopping, remember that you did the same and in a blink of an eye, your renewal will be up. When that day comes, it may not be smart to automatically renew with your present lender. Mortgage renewals are a critical moment in your home ownership journey, and they require careful consideration.
What Is a Mortgage Renewal?
A mortgage renewal is when the term of your mortgage comes to an end and you have the option to renew your mortgage for another term with the same lender or shop around for other options. Most mortgage terms are around 5 years, and when your term comes to an end, you’ll need to either renew your mortgage or pay it off in full. You may need to renew your mortgage several times before paying off your loan in full.
Should I Renew with My Current Lender?
When your renewal is up, don’t automatically renew with your current lender. This is a great opportunity to evaluate your options and determine what will work best for you. A few of the things we can look into at renewal time include:
- Other lenders who may be offering other mortgage products that better suit your needs.
- Lower interest rates.
- Your home equity and refinancing options.
When To Start the Renewal Process
Start thinking about renewal before your term ends. The key to maximizing the benefits of your mortgage renewal is to plan ahead. Contact me 4 – 5 months before your renewal date is up to begin assessing your options.
Often, homeowners will automatically renew with their present lender out of convenience and miss out on lower rates or better terms. Mortgage renewal is a time to re-evaluate your mortgage needs and ensure that your mortgage continues to meet your financial goals. Contact me today to begin evaluating your options and preparing for your mortgage renewal date.
– Duane Springsteel