Mortgage Renewal - It Matters
April 3, 2017 | Posted by: Shayne Beeler
It often seems like a mortgage renewal for many people is an insignificant event that just happens with a couple of quick choices and then life goes on. Is this the right way to look at a renewal? We plan a purchase or a refinance with future thinking, budgeting and as many circumstances in mind as we can. After all, this is how we save interest costs and do our best to avoid a future mistake. Is a mortgage renewal any different?
I believe the difference here comes down to the process. When we view a purchase or a refinance as something we have to “create”, so to speak, borrowers naturally see this as a process that requires planning. But a renewal, most of the time, doesn’t involve changing the balance but rather just “picking” a new term. I’d have to say this event requires a planning process just as much as a refinance or a purchase – so let’s be careful not to get hypnotized into seeing it any differently.
When you receive your mortgage renewal, what’s your first instinct? Do you call your Mortgage Broker? I’ve heard it expressed, as “we don’t want to change lenders so there’s no need to call for additional consultation”. While a lender change may not be necessary, are the offers being provided competitive? Perhaps some of the terms being offered are competitive but do those terms align with your situation going forward? Just like when we plan a purchase or a refinance, we always want to be thinking ahead as much as we can, with the information we have. A mistake at renewal can cost us the same way a mistake while purchasing or refinancing can.
So please, call your Broker to strategize. We want to assist you with all mortgage decisions because they all either take you closer or further from your goals.
