As the time for the renewal of your mortgage is around the corner, you should not be unprepared or miss out on the opportunities of saving or getting the most out of it. The renewal of your mortgage involves taking the unsettled or remaining balance of your mortgage and renewing it for another term at a new and possibly lower mortgage rate. To help you with the renewal of your mortgage, we have put helpful tips together for your information.
- Assess Your Present Financial Status
Do not sign and return your mortgage renewal slip without considering your present financial situation and your goals to determine if the current lender or provider can offer you a product that can meet your goals. Evaluate the product offered with your plan and decide if they can work together. If not, start searching for another provider. Consult a Financial Advisor who can help assess your present financial status.
- Start Shopping Early
Start searching for other providers whose terms, products, and interest rate are better or meet with your financial plans for the next mortgage period early before the expiration of your existing mortgage. Consequently, you can contact as many providers as possible to choose the most promising among them and get the paperwork ready.
- Negotiate a More Favorable Rate
Do not leave things to chances. Ask for a better mortgage rate from your existing provider. Usually, providers take advantage of the busy schedules of borrowers to stick to all the terms and rates signed initially. With the state of the economy, it would not be a bad idea if you get a lower rate. Schedule a meeting with your provider and negotiate a more favorable rate based on the previously gathered market information. By getting a better rate, you might not need to change your lender.
- Even with a Lower Rate, Keep Your Payments the Same
If you are fortunate to find a new lender that offers you a lower rate or it is your existing provider that gives you a lower rate, ensure to keep paying the same amount you were paying when the rate was high. The purposes of this tip is to help you pay off your mortgage off sooner and reduce the overall authorization.
- Pay Extra towards the Principal
Paying extra or more towards the principal helps to reduce the amount of your amortization, and this is the best time when you are not limited to a certain amount according to the terms of the mortgage is when you are renewing the mortgage. If you follow this tip, you will save so much money that will not be subjected to any rate.