Table of Contents
As your mortgage term comes to an end, you may be wondering, “What should I do next?” Many homeowners habitually sign their lender’s mortgage renewal offer without considering other options. Historically, 70% of homeowners renew with their lender without reviewing their options. But this could be a costly mistake. Your mortgage renewal is a chance to reassess your finances and save thousands of dollars.
This article will explore:
- Why you shouldn’t just sign your renewal offer.
- How switching lenders won’t necessarily cost you extra.
- How to start saving money today.
Why You Shouldn’t Automatically Sign Your Mortgage Renewal Offer
Many homeowners assume their lender will offer the best renewal terms. But this isn’t always the case. Lenders, particularly banks, often rely on the fact that most people won’t shop around. This allows them to charge you more, maximizing profits at your expense.
Your lender will know the market for interest rates at your mortgage maturity, but they may not give you the best rates. This is why it’s critical to explore other options. Reviewing other lenders’ offers could get you a better rate or more flexible terms.
What Happens If You Don’t Shop Around for Your Mortgage Renewal?
If you don’t explore your options at your mortgage maturity, you could end up paying a higher interest rate. A small difference in your interest rate can save you a lot over your mortgage term. For example, a 0.5% cut in your mortgage rate on a $300,000 loan can save you thousands in interest over five years.
Also, sticking with your lender may mean missing out on better benefits or more flexible terms. These may include options to pay down your mortgage faster or to reduce your monthly payments. By accepting the renewal offer without checking your options, you might miss chances to improve your finances.
Switching Lenders for a Mortgage Renewal Won’t Cost Extra
A common misconception is that switching lenders at your mortgage maturity will result in extra costs. Many homeowners believe that staying with their current lender is the easiest and cheapest option. Yet, this isn’t always true.
If you’re not increasing your loan or changing your mortgage’s key terms, switching lenders can be simple and cost-effective. Many lenders cover the cost of transferring your mortgage to incentivize you to switch. So, you can move your mortgage with little to no out-of-pocket expense.
How to Save Money on Your Mortgage Renewal
If you’re approaching your mortgage maturity, now is the perfect time to take action. By comparing rates from different lenders, you can start saving money immediately. I work with a wide range of lenders, including top “A” lenders. They offer competitive rates for mortgage renewals and debt consolidation. With access to these lenders, I can help you find the best rate and terms that fit your financial situation.
It’s important to start the renewal process early, 3-6 months before your term ends. This gives you time to compare options and negotiate with your current lender if needed. Mortgage renewal isn’t just about extending your terms. It’s about finding a deal that will save you money over the long run.
Get Started with Your Mortgage Renewal Today!
Don’t leave money on the table by automatically signing your current lender’s renewal offer. Take control of your financial future and explore better options. By filling out the simple form below, you can get started with your mortgage renewal today. I’ll help you find the best rate and terms to save you money and give you peace of mind.
Don’t wait—start saving on your mortgage renewal now!