Below are 10 things to consider before your mortgage renews.
Courtesy: MortgageOpolis
1) Have you explored all your options? Once you receive your mortgage renewal statement,
there's nothing easier than simply signing on for another term. But while this may make
sense in many cases, your family or financial situation may have changed over time.
We can look for opportunities that could better meet your needs right now.
2) Are you comfortable with your payments? If you've been feeling financially strapped each
month making your mortgage payments, this could be the time to reduce them to a
more easily managed level. On the other hand, if you're earning more, why not pay
down your mortgage faster and save thousands of dollars in interest over time?
3) Do you need cash flow for other things? Your priorities may have shifted since you first
bought your home, and your cash flow needs can shift too. Things like paying for a
child's university education, planning a career change, or a major purchase such as a
vacation property may call for spending money on things other than your home. You may
be able to refinance your mortgage to take this into account.
4) Can you handle fluctuating rates? Some homeowners are nervous about any hikes in
interest rates, while others are comfortable to go with the flow. Rates are tough to
predict. It's best to base your decision on your personal situation, not what you read
in the news, and tailor your mortgage renewal around your needs. We can help you
decide whether to opt for fixed or variable rates - and we don't want you to lose
any sleep over your decision!
5) Will you sell soon? If you are likely to sell soon, consider a shorter-term mortgage or
one that has flexible terms so you're not penalized if you sell your house before the mortgage
comes due.
6) Are you thinking about a major renovation? You know that projects such as a new kitchen or
an addition can make your home more valuable. But the cost of having the work done can tie
up a lot of money. Before you renew, look at all your financing options, which may include
getting an additional line of credit or keeping your monthly mortgage payments low so you
have money on hand to finance the renos.
7) When do you want to be "mortgage-free"? If you're planning extended time away from work or
perhaps an early retirement, it may make sense to pay down your mortgage sooner rather than
later. While increasing your payments will raise your monthly costs now, you'll ultimately save on
interest in the long term and can prepare for that fabulous, mortgage-free lifestyle.
8) Could you use your home equity to fulfill other goals? Refinancing a mortgage can be one way
to free up cash you need for other things, which could even include buying another property.
Mortgage renewal time is an ideal occasion to review all your options.
9)Have your insurance needs changed? If your financial situation has changed since you first took
out your mortgage, review whether you need the same level of insurance in place to cover
mortgage obligations.
10) Are you getting the best rates and terms? In a competitive mortgage environment, your good
credit history can make refinancing work to your advantage. We analyze mortgage markets daily to
ensure you don't miss anymoney-saving opportunities.
