Things-To-Do While Going for the Mortgage Renewal

When your mortgage term comes close to expiry date, you need to renew your mortgage for another term in order to clear off your balance. At each mortgage renewal, you have this great opportunity of assessing your current mortgage and then to compare its rate with the mortgage rates offered by other lenders. During your mortgage renewal process, you can actually save huge by lowering your payments. Here are the things you need to consider while renewing the mortgage.

Start Shopping Months Before Your Term Ends


Mark your mortgage term’s maturity date to avoid any prepayment penalty while renewing your mortgage with the current lender. If you miss the maturity date and somehow fail to renew your mortgage before expiry, it is surely going to cost you more. If you are not interested to renew your mortgage with the existing lender, then look for other lenders who can meet your financial expectations. Finding a new lender requires time and effort. Therefore start your search much before the maturity date of the current term.


Decide on Your Mortgage Needs


Before you enter another the next renewal term with the existing/new lender, try to understand your financial goal and how you wish to reach this. Make a list of things that you are looking from your mortgage product. Review the monthly mortgage payment amount carefully to find out possibilities of saving some bucks on monthly basis. If you have gained heavily from any other source, then try to pay off the mortgage entirely but you need to know about the prepayment penalty charges. If there is any possibility of selling off the mortgage property in next 4-5 years, then opt for a portable mortgage product which will reduce the monthly mortgage cost measurably.


Schedule an Interview with the New Mortgage Lender


Once you have made the decision of changing your existing lender, you should start the search to find out another lender that will offer more customized lending rate and payment options to cater your financial requirements. Try to shortlist 2-3 mortgage companies as preferable service providers and make necessary arrangements to schedule an interview with each of them. Write down the things you should discuss with your future mortgage lender. Such interviews will assist you to develop a rational idea on the recent trends in lending market and how you can use them to gain the most from your mortgage renewal.


Compare and Make a Decision


After having thorough discussions with several mortgage companies, now it is time to take the final decision. In view of your financial goals, you need to outline the mortgage needs and compare the mortgage renewal offers to choose the right one which meets your financial strategy. You have always the chance to negotiate with your existing service provider for some really good offer or discount on your mortgage renewal.


Follow these simple yet useful tips to save great at the time of your mortgage renewal without compromising the quality of service offered by the mortgage company.

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