Mortgage Renewal Tips - Diamond & Diamond Real Estate Lawyers

Mortgage Renewal Tips

What to Think About When Renewing Your Mortgage

Your mortgage payment may be a high expense in your monthly budget, but when mortgage term comes up for renewal, lenders may tempt you to stay with them by sending you out a renewal offer that simply requires your signature in response.

However, it is often in your best interest to do some research on your own. Your best offer might not be the one that shows up in your mailbox.

Mortgage Renewal Tips

One of the most important steps that you can take without the mortgage renewal process is to start shopping around for a new mortgage rate as early as four months prior to your product renewal.

You may be eligible to ask for a better rate. Renewal offers will be mailed to you by the lender within the last 30 days of your mortgage term, but many will even send this sooner.

Mortgage lenders may offer you a discount off of the posted rate for being an existing client. However, it might lead to you paying a higher interest rate than you actually need to if you’ve shopped around instead.

Bear in mind that the best lender at the time of taking out your mortgage may not be the best lender now.

After you have identified a mortgage rate and a product that you are happy with, ask for a rate hold.

The majority of lenders will enable you to hold the rate for up to 120 days, meaning that you can come back later and achieve this rate. This gives you some peace of mind if you are concerned that your rates may otherwise go up before you renew.

Bear in mind that switching providers takes time and may lead to delays, paperwork or even some additional costs, but it can ultimately end up being worth it in the long run if you are able to reduce your existing mortgage rate.

Are you not sure whether the rate you’ve been offered is the best one for you? Contact a real estate lawyer who can help you with all aspects of your real estate concerns.

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