Switching Mortgage Providers | Diamond & Diamond Real Estate Lawyers
  • Tuesday, 20 November 2018

Switching Mortgage Providers

Does it Make Sense to Switch Mortgage Providers?

When it is time for your renewal term with your mortgage lender, you have an important decision to make. You may want to switch providers or stay with your current lender, depending on what is being offered. However, staying with your current provider might not be the right option for you.

There are two primary reasons when it makes sense to switch to a new provider.

Reason #1

First of all, you may be looking for different terms and conditions. If another lender is offering you better terms and conditions, you may wish to switch your mortgage over to them.

Your pre-payment options are the most common reasons why individuals would consider switching to different mortgage providers.

Reason #2

The second primary reason why you may wish to switch mortgage providers is to get a lower mortgage rate. This could save you up to thousands of dollars in interest charges.

Make sure that you shop around and gather all of the relevant information before committing to a new provider. You need to calculate the money and determine how this will affect your monthly payments as well as the long run.

You may have pre-payment privileges, where you can increase your monthly mortgage payments by 10% once every single year.

Your monthly mortgage payment would go up if you only do this once at the beginning of your new five-year term. This could help save you significantly on mortgage payments.

You may also be eligible to increase your monthly mortgage payment by 20% depending on your lender. If you wish to switch providers, you will need to provide the following information with your application:

  • Proof of property insurance
  • A copy of your current lender’s mortgage renewal letter.
  • Proof that you own the home.
  • Confirmation of your income.

There may be fees associated with switching the lender as well.

Are you concerned about your mortgage? Do you want to talk over your legal real estate options with an experienced lawyer? Contact our firm today to learn more.

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