If your mortgage is up for renewal, your bank must send you a statement at least three weeks before the term expires. When you receive your mortgage renewal statements, it will contain a plethora of information from the portion of payments that are interest charges to the discharge charges should you want to switch to a new financial institution. The time for mortgage renewals can be as nerve-racking as when you first signed your mortgage but it can be a wonderful financial opportunity.
With today's busy lives, individuals often just sign their forms without giving them a second thought. Between soccer practice and volunteering, who has the time to research options for mortgage renewals? Each bank and lender offers a variety of different mortgage options and the choices can be overwhelming. This is where a mortgage broker can help you evaluate your options. There is absolutely no regulation that says that you have to stay with your current lender or that you have to change your mortgage, but why not look at the options?
If you are looking at options for mortgage renewals, there are a few things to consider. For starters, your bank will charge you if you do decide to switch to a different financial institution. You may also have to get your house appraised and pay fees in order to get a mortgage at a new bank. If your financial needs are vastly different than they were when you first signed your mortgage, it may be a good idea to consistently consider a new mortgage when you renew. This can allow you to either have more financial freedom or to pay off your mortgage faster. If interest rates have dropped drastically, mortgage renewals allow you to sign a mortgage with a lower rate which will help you out in the long term. Mortgage brokers and other financial advisors can help you determine if mortgage renewals is the right move for you. Depending on your current mortgage, changing lenders or getting a new interest rate may not be the right fit for you.
Far too often, individuals simply sign their renewal notices without giving them a second thought. It looks like far too much time and effort to find a new lender or mortgage option. The fact of the matter is that you can end up saving thousands in the long term by renewing your mortgage with a new lender, a lower interest rate or a different term. Your financial needs may have changed drastically since you first signed your mortgage so why would you stay with a mortgage that is not right for you now? Mortgage renewals offer you the opportunity to consider your current financial needs and wants and to make a move that works for you! If you are not sure where to start, talk to a mortgage broker or a lender about what mortgage renewals options might be right for you.