10 Things to Consider Before you Renew your Mortgage

10 Things to Consider Before you Renew your Mortgage

Have you explored all your options?

Once you receive your mortgage renewal statement, there’s nothing easier than simply signing on for another term.

While this may make sense in many cases, your family or financial situation may have changed over time. I can look for opportunities that could better meet your needs right now.

Are you comfortable with your payments?

If you’ve been feeling financially strapped each month making your mortgage payments, this could be the time to reduce them to a more easily managed level. On the other hand, if you’re earning more, why not pay down your mortgage faster and save thousands of dollars in interest over time?

Do you need cash flow for other things?

Your priorities may have shifted since you first bought your home, and your cash flow needs can shift, too. Things like paying for a child’s education, changing careers or a major purchase such as a vacation property may call for spending money on things other than your home. You may be able to refinance your mortgage to consider this.

Can you handle fluctuating rates?

Some homeowners are nervous about any hikes in interest rates, while others are comfortable to go with the flow. Rates are tough to predict. It’s best to base your decision on your personal situation, not what you read in the news, and tailor your mortgage renewal around your needs. We can help you decide whether to opt for fixed or variable rates — and we don’t want you to lose any sleep over your decision.

Will you sell soon?

If you are likely to sell soon, consider a shorter-term mortgage or one that has flexible terms so you’re not penalized if you sell your house before the mortgage comes due.

Are you thinking about a major renovation?

You know that projects such as a new kitchen or an addition can make your home more valuable, but the cost of having the work done can tie up a lot of money. Before you renew, look at all your financing options, which may include getting an additional line of credit or keeping your monthly mortgage payments low so you have money on hand to finance the renovations.

When do you want to be “mortgage-free?”

If you’re planning extended time away from work—or perhaps an early retirement—it may make sense to pay down your mortgage sooner rather than later. While increasing your payments will raise your monthly costs now, you’ll ultimately save on interest in the long term and can prepare for that fabulous, mortgage-free lifestyle.

Could you use your home equity to fulfill other goals?

Refinancing a mortgage can be one way to free up cash you need for other things, which could even include buying another property. Mortgage renewal time is an ideal occasion to review all your options.

Are you getting the best rates and terms?

In a competitive mortgage environment, your good credit history can make refinancing work to your advantage. We analyze mortgage markets daily to ensure you don’t miss any money-saving opportunities.

Should you get a credit line?

Especially if you are thinking of retiring in the next 5 years. You should get a Line of Credit now while your income is still good enough to qualify. If you wait, it may be too late. Get that Credit Line now and you won’t have to worry about it in the future.

Contact me now to find out what your options are.

For help with renewing, refinancing or any type of mortgage financing in the Orangeville, Shelburne or Dufferin County area call or text Geoff Del Grande at 519-217-348410