Mortgage Renewals: Time to Renew Your Mortgage

Mortgage Renewals: Time to Renew Your Mortgage, Not Just Your Netflix Subscription!

Mortgage renewals might not be as exciting as your favorite TV show’s next season, but they are a pretty big deal for your financial health! If your mortgage renewal date is coming up, don’t just sign the papers like it’s a package delivery. It’s a chance to give your finances a little tune-up and potentially save some serious cash. Here’s a simple, step-by-step guide to help you through the process.

1. Review Your Current Mortgage Terms (Yes, Dust Off Those Papers!)

Start by reviewing the terms of your current mortgage. Take a look at the interest rate, amortization period, and payment frequency. Ask yourself:

- Interest rate at renewal: happy with it, or is there a better deal out there that could possibly save you thousands?- Amortization period: Can you afford to shorten it to save on interest, or does the current term suit your goals?
- Payment frequency: Could switching payment schedules (like from monthly to bi-weekly) help you pay off your mortgage faster without breaking the bank?

It’s like checking the oil on your car you might not think about it every day, but it’ll keep things running smoothly.

2. Assess Your Financial Situation (A Quick “Life Audit”)

Life happens, and your financial situation might have changed since you first got your mortgage. Here are a few questions to consider:

- Has your income increased or decreased?
- Are you comfortable with your current payments, or are they feeling like a bit of a squeeze?
- Do you have other debts that could be consolidated into your mortgage for easier management?

This step is basically checking if you’re on the right path or if you need to take a detour to reach your goals faster.

3. Consider Refinancing (Unlocking the Equity Treasure Chest)

If your home’s value has gone up, you might be sitting on a bit of an equity treasure chest. Refinancing could let you tap into that equity for renovations, debt consolidation, or even investment opportunities. Keep in mind, though, that there are costs involved, like legal fees and potential penalties for breaking your current mortgage early. So, while refinancing can be a great tool, it’s not a free pass to go on a spending spree.

4. Fixed vs. Variable Rates (The Eternal Mortgage Debate)

Choosing between a fixed and a variable rate mortgage is kind of like choosing between coffee or tea—both have their pros and cons, and it really depends on your personal preference (and risk tolerance):

- Fixed-rate mortgages: Perfect if you like predictability and knowing exactly what your payments will be for the next few years.
- Variable-rate mortgages: Ideal if you can handle a little uncertainty for the chance of saving some money (and potentially feeling like a financial genius when rates drop).

There’s no “one-size-fits-all” answer here, so weigh your comfort level with risk and where you think interest rates might be headed.

5. Think About Your Future Plans (Home for Now, or Forever?)

Renewing your mortgage is a great time to think about your long-term plans. Will you be staying in your home for the foreseeable future, or is a move on the horizon? Do you want to pay off your mortgage faster, or would you prefer to keep your monthly payments low for added flexibility?

Your future plans should influence whether you go for a shorter-term mortgage (if you’re planning to move soon) or lock in a longer-term one for more stability.

6. Consult with a Mortgage Professional (Me of Course!)

Sometimes, navigating the ins and outs of a mortgage renewal can feel like trying to assemble IKEA furniture without the manual. That’s where a mortgage professional (like yours truly) comes in! I can help you assess your options, negotiate better rates, and ensure you’re making the best possible decision for your financial future.

Final Thoughts

Renewing your mortgage might not come with the same excitement as, say, booking a vacation, but it’s a golden opportunity to improve your financial situation. By reviewing your current mortgage, considering refinancing, and consulting with a mortgage agent, you’ll be better positioned to save money and achieve your financial goals.

And remember: don’t just sign on the dotted line—make sure you’re getting the best deal possible. Your future self will thank you (probably while binge-watching that new Netflix series in your beautifully refinanced home).

Contact me to discuss your next renewal!

Kat Brazier
info@katbrazier.com
416-464-6763