Your current lender must send a statement of mortgage renewal to you 21 days before your loan term ends. But they might send you a renewal offer (through the mail) to share their lowest posted rate that’s good for 30 days. This offer will protect you from any possible rate increase during this 30-day period. You may look around and compare other lenders’ mortgage rates to know whether the offered rate is the best for you or not? If it is not, you should negotiate with your current lender to make it at least equal to what other lenders are offering in the market or even less than that. But many times you will find it difficult to convince the lender to negotiate the mortgage rate. So, in the last 30 days, make sure you meet a mortgage broker and talk about the offers other lenders have for you.
Renewing a mortgage agreement is a tricky job and you need to be cautious while doing so. Otherwise, you may soon find yourself stuck in the vicious circle of multiple mortgage renewal processes in the years to come. Things may have possibly changed a lot since you signed up for your last mortgage contract. There could be several reasons why you should consider changing your lender now. Maybe your current mortgage isn’t the best for your lifestyle, future goals, financial situations, etc.
Hence, before you proceed with renewing a mortgage agreement, don’t forget to do some good research, compare the options available to you, and, best of all, do a self-analysis and self-assessment. What all you need to consider before entering another mortgage renewal process? The first and most important thing you need to think about is “has your income/earning changed?” The other things you need to pay attention to include “your expenses – to what extent they have changed”, “your financial risk-taking capabilities”, “your family and number of dependents,” etc.
Another important thing you need to do before renewing a mortgage agreement is examining your goals. Are you planning a major repair or renovation of your home soon? Are you planning a move soon? Are you willing to pay a lump-sum on your mortgage?
Self-assessment and goals analysis will help you choose the mortgage best that suits your life and simplifies loan repayment for you. And, remember your lender starts working on the mortgage renewal process months before your mortgage maturity date arrives, so why are you sitting relaxed and oblivion? Look around and talk to the experts to get your mortgage loan at the best rates! Call Rateguru to discuss your mortgage renewal needs now!
