Top Tips To Renew Your Mortgage

Have you taken a mortgage? If so, you need to renew it at least once before you pay it off. What is a mortgage renewal? It is the process of renewing the outside balance of your mortgage for another term at a new mortgage rate. If you are lucky, your mortgage lender might renew it for a lesser rate. Click here to find out our rates.

Sometimes, you may not have a maturity date, which is the date your mortgage terms end. In such instances, your lender will send you a renewal slip, reminding you to renew your mortgage. You can find out more about these processes right here.

However, the ideal thing to do when you take a mortgage is to be proactive about these procedures. Here are some proven tips to keep your mortgage renewal up-to-date:

  • Review your mortgage requirements

One of the first things to do before signing your mortgage agreement is to list why you need a mortgage and your financial goals. You may want to consider factors like an inheritance which can affect your prepayment options. You also need to ensure if your lender can provide the mortgage amount you require.

Another important point to consider is your mortgage time. How fast can you renew your mortgage? It is better to opt for short-term plans if there’s a chance to move to a new city. Such factors will simplify your mortgage renewal process when the time comes.

  • Make early renewals

You don’t have to wait until your mortgage maturity date to renew it. You can renew it even if there are 120 days to the maturity date. Of course, your lender will send you a reminder in the last thirty days of your mortgage term. However, if you are financially ready, you can ring in your renewal much earlier.

Early renewal will buy you enough time to look for other providers if you cannot come to a mutual agreement with your current lender. Although you cannot make the switch until the maturity date, it will give you and your provider the time to negotiate and settle with the most amicable terms. You can also get all the paperwork ready to avoid last-minute work and anxiety.

  • Lock in a rate hold

Rather than doing all the work yourself, seek the professional guidance of a mortgage broker. They can analyze your credit card reports and find lenders who align with your requirements. They can also pinpoint your qualifying rate if you choose to switch lenders. However, if you cannot decide, you can ask your mortgage broker for a rate hold. A rate hold will protect you from incurring an interest spike for up to 120 days. It will also help you lock in the rate before your mortgage comes up for renewal.

  • Take time to switch lenders.

If you decide to switch lenders, there’s one thing you should do as early as possible: Start applying for a remortgage. You should provide all the information such as:

  • Proof of house ownership
  • Proof of property insurance
  • Proof of income
  • Copy of your mortgage renewal letter

Your mortgage broker will take time to process your application. So, rather than doing this at the last moment, ensure you have plenty of leeway between the application and your renewal date. You must do this on time if you don’t want to stick with your current lender.

The bottom line

Mortgage renewal is not a difficult process. However, just signing the renewal slip and sending it back to your current lender will not give you the best mortgage rate. As you implement these tips, you must also do in-depth research to find the best mortgage broker. And then, you can rest assured to find the best lender and mortgage rates ideal for you.

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