It’s really easy just to sign the paperwork to renew your mortgage. But is it the best option for you? Before you lock in, there are eight things to consider before you sign your next mortgage renewal
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.
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.
Do you need cash flow for other things?
Your priorities and cash flow needs may have shifted since your first bought your home.
Things like paying for child’s university, planning a career change or major purchase such as a vacation home. You may be able to refinance your mortgage to take this into account
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 mortgage payments low so you have money on hand to finance the renos.
Will you sell soon?
If you are likely to sell soon, consider a shorter term mortgage or one that has flexible terms so you are not penalized if you sell your house before the mortgage closes.
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 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.
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 your mortgage obligations.
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 any money saving opportunities.
Reach out before you sign your mortgage renewal letter to make sure you know all your options!