NAVIGATING MORTGAGE RENEWAL: SHOULD YOU JUST SIGN BACK?

Is your mortgage up for renewal? Here's what you should know.

A couple of months before you maturity date (the end of your mortgage contract), your lender will likely mail or email you a renewal agreement, which gives you some renewal options. You do not have to re-qualify on mortgage renewal if you decide to renew with your lender. Usually, just signing the renewal document is enough.

If you want to determine whether there are better interest rates available or if you feel the rate you were offered is too high and not competitive, you can shop around. When renewing your mortgage, we can simply switch your lender and transfer the mortgage, and the new lender pays for the legal fees and any appraisal on your property, if it's required. This way, you are not out-of-pocket on the expenses and received the benefits which are lower interest payments and a more affordable monthly payment.

When you're renewing your mortgage and just signing back with your lender, you cannot extend the amortization period back out to twenty-five or thirty years which would give you a lower monthly payment. You cannot consolidate any debts you may have. You cannot negotiate any of the terms.

Unfortunately, due to higher rates and mounting credit card debt, just renewing a mortgage and signing back with the lender are not feasible options for many people.

Depending on your financial situation, and the fact that you're now renewing into double the rate you had, you may want to explore lower payments and debt consolidation. In this case, we would treat it as a refinance, and you would need to re-qualify for the mortgage loan.

Re-qualification does not have to be a painful process and it actually isn't most of the time, provided you can have your documents available. Most times, the standard income documentation is needed along with a copy of your property tax bill. Re-qualification can be confirmed in as little as twenty minutes during an appointment.

Feel free to get in touch with me today.
Most times, lenders are willing to fight for your business and offer competitive interest rates, while also seeing you in a better financial position for the next few years.


Sarah Colucci, Mortgage Agent
Sherwood Mortgage Group, Broker 12176
Direct: (647) 773-4849
www.coluccimortgages.com



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