Getting expert advice from a mortgage broker when you need to renew your mortgage is imperative. He will be able to do a mortgage analysis for you to see what the best options would be for you. It is important that you consider a few things before you sign your renewal with your current lender.
Have you explored all your options? Once you receive your mortgage renewal statement, there’s nothing easier than simply signing on for another term. But while this may make sense in many cases, your family or financial situation may have changed over time. Your mortgage broker can look for opportunities that could better meet your needs right now.
Are you comfortable with your payments? If you’ve been feeling financially strapped each month making your mortgage payments, this could be the time to reduce them to a more easily managed level. On the other hand, if you’re earning more, why not pay down your mortgage faster and save thousands of dollars in interest over time?
Do you need cash flow for other things? Your priorities may have shifted since you first bought your home, and your cash flow needs can shift too. Things like paying for a child’s university education, planning a career change, or a major purchase such as a vacation property, may call for spending money on things other than your home. You may be able to refinance your mortgage to take this into account.
Are you thinking of selling in the near future? If you are likely to sell soon, consider a shorter-term mortgage or one that has flexible terms, so you’re not penalized if you sell your house before the mortgage comes due.
Are you perhaps thinking about a major renovation? You know that projects such as a new kitchen or an addition can make your home more valuable. But the cost of having the work done, can tie up a lot of money. Before you renew, look at all your financing options, which may include getting an additional Line of Credit, or keeping your monthly mortgage payments low, so you have money on hand to refinance the renovations.
Could you use your home equity to fulfill other goals? Refinancing a mortgage can be one way to free up cash you need for other things, which could even include buying another property. Mortgage renewal time is an ideal occasion to review all your options.
If you mortgage is coming up for renewal, don’t hesitate to contact us, we can find the best option for you.