Is Early Mortgage Renewal Right For You? | Diamond & Diamond Real Estate Lawyers
  • Wednesday, 10 May 2017

Is Early Mortgage Renewal Right For You?

ruly the riHow to Know if Early Mortgage Renewal is Right for You

If there is still an outstanding balance on your mortgage at the conclusion of your mortgage term, you will be responsible for renewing for another term.

Your lender is responsible for notifying you 21 days before your term is up, but the majority of lenders will allow you to renew anytime within the final four months of your current mortgage term without paying the penalty for breaking your term early.

During this four-month period, lenders will contact you with an early renewal offer. This will usually outline a rate as well as a term and a letter that you may be eligible to sign and mail back.

However, it may be in your best interest to shop around and identify whether an early mortgage renewal is truly the right option for you.

Why You Should Shop Around for Mortgage Renewals

By shopping around, you may be able to identify a rate and term that is more in line with your individual needs.

If you get an offer early from your lender, evaluate the interest rate. Remember that it is very unlikely that the lender who gave you the best rate the last time around will be able to give you the lowest mortgage rate on the market today.

This is why you want to shop around with other lenders until you can identify the lowest rate.
Your best option is to switch providers if you want to give the best mortgage rate when it is time to renew your mortgage.

Shop around in the last four months before your official renewal date so that you can select a new lender with a new rate and complete all of the paperwork necessary well in advance.

Do you need help with mortgage issues, especially those surrounding legal concerns? Contact our real estate lawyers today to learn more.

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