If you currently have a mortgage, there’s a good chance that it will come up for renewal at some point. And when it does, you might be wondering whether or not you should renew it. After all, there are a lot of variables to consider, and it can be tough to make the right decision for your unique circumstances.
In this blog post, we’ll provide an overview of everything you need to know about renewing your mortgage. We’ll cover the pros and cons of renewing, how to shop around for the best rate, and what to do if you have trouble getting approved. By the time you’re finished reading, you’ll have a much better understanding of the mortgage renewal process and whether or not it’s right for you.
What is Mortgage Renewal?
Mortgage renewal is simply the process of refinancing your mortgage. This usually happens every 5 years, although it can vary depending on your lender and your individual circumstances. When you renew your mortgage, you will have the opportunity to shop around for a better interest rate. You may also be able to switch lenders if you’re not happy with your current one.
Why Should I Renew My Mortgage?
There are a few reasons why you might want to renew your mortgage. First of all, as mentioned above, it gives you the chance to shop around for a better interest rate. This can save you thousands of dollars over the life of your mortgage. Additionally, renewing your mortgage can also give you the opportunity to switch lenders if you’re not happy with your current one. And finally, if you’ve been making extra payments on your mortgage, renewing it can give you the chance to capitalize on that equity and potentially get a lower interest rate as well.
What Should I Watch Out for When Renewing My Mortgage?
There are a few things you should watch out for when renewing your mortgage. First of all, make sure to compare apples to apples when shopping around for rates. Some lenders might offer a lower interest rate but make up for it in other ways, such as higher fees or shorter terms. Additionally, watch out for prepayment penalties. Some lenders will charge a fee if you pay off your mortgage early, so make sure to ask about this before signing anything.
And finally, don’t be afraid to negotiate! Lenders are often willing to give their best rates to borrowers who are willing to haggle a bit.
Want to Learn More?
Mortgage renewal can be a confusing and stressful process, but it doesn’t have to be. By doing your research and being prepared, you can go into your renewal confidently knowing that you’re getting the best possible deal on your mortgage.
If you have any questions about the renewal of your mortgage or would like some help exploring all of your options, our team of experts at Ingram Mortgage Team in the Surrey and Langley area would be more than happy to help you. Give us a call or fill out the contact form here to get started