How to Save Money at Mortgage Renewal Time
Most people don’t think much about their mortgage renewal until they receive a notice from their lender that lets them know that their term is about to expire. Included with this notice is usually an offer from that same lender for a new term and all they have to do to renew is sign the offer and send it back to the lender. Unfortunately, this is what most people do – and they end up leaving money on the table.
If you want to save money at mortgage renewal time, here are a few tips that will help you.
Make an appointment with your mortgage broker
When people renew their mortgage without shopping around for the best rate, they usually end up paying more in interest than they should. A few months prior to your mortgage renewal, you should set up an appointment with your mortgage broker. Your broker can compare the rates of various lenders for you to make sure you get the best deal possible.
If you want to stay with your current lender, don’t just assume that their renewal offer is their best rate. Lenders know that most people won’t negotiate with them at renewal time so there is little incentive for them to offer their best rates. Has your mortgage broker found a better rate with another lender? Oftentimes they can go to your current lender and get them to match it!
See if you can “upgrade” your mortgage
Is your current mortgage with a private or alternative lender because you had poor credit when you originally applied? If your credit has improved over the term of your current mortgage, you may be able to upgrade to a more traditional mortgage. Talk to your mortgage broker about whether this is an option for you.
Change your amortization period
Has your income gone up since you last applied for your mortgage? Are you able to pay a little more on each payment? If so, you may be able to save money by shortening your amortization period. Your monthly payments will go up, but you will save over the lifetime of your mortgage.
The opposite is also true. If you need to save money on your monthly payments, you may be able to lengthen your amortization period. This will cost you more overall, but it may be worth it for you to have a little more liquidity each month.
Contact 1Onefund Financial today
If your mortgage is coming due for renewal within the next few months, now is the time to start exploring your options. At 1Onefund Financial, we can help you find ways to save money at mortgage renewal time. Contact us today to speak with one of our agents.