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6 Things to Consider When Renewing a Mortgage


1. Start early!

Starting early puts you in the best position to see if there is anything you can modify within your lifestyle to ensure that you get the best renewal possible. Starting to look within the last year of your mortgage sets you up to have the most amount of options available.


2. Do not sign the first renewal offered.

Lenders can change the terms of your mortgage, and the renewal you are signing can cost you a percentage your equity if you are with the wrong lender.


3. The best rate is not always the best renewal.

The best rate does not always have the terms that fit in with your lifestyle. Many people think that the only reason they would ever break a mortgage is if they are moving or selling their home. However, there are many outside factors, such as divorce, job change, and investment opportunities that could contribute to needing more flexible terms in a mortgage. 


4. Consider the lender's history and bias.

Some lenders can have higher primes then anyone because they know the cost to leave outweighs staying the course. A lenders job is to lock you down into a mortgage so they can make as much profit off you as possible. Educate yourself to avoid this risk.


5. Use a mortgage professional.

Each time you shop for a lender on your own it takes points off your credit score. Using a mortgage professional that can shop for multiple lenders at one time with one application protects your credit score.


6. Do not online rate shop.

Today’s mortgage market is increasingly complex and there are significant differences in rates depending on the type of mortgage you need (insured vs. uninsured, switch vs. refinance, purchase or renewal). Mortgages are also dependent on your credit score, type of home you are purchasing, amortization period, your job and more. Searching online for the best rate will get you nowhere. You need an appropriate application and supporting documents to find the best rate for you.


Your mortgage is the largest debt and investment that you will ever have. Here at Connolly Capital, our job is to advise you in your best interest based on our expertise. We are here to save you money! 

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