Mortgage Renewal: All You Should Know About The Process
Updated: May 17
Mortgage renewal explained: Upon getting a mortgage, mortgage renewal would probably be the least of your worries. When the period of your mortgage (the time for which it has been taken) gets over or is about to be over, you will be face-to-face with the rather lengthy and tiring mortgage renewal process. Mortgage renewal in simple terms means signing up for a new term of mortgage after the current term ends. This stands unless you are ready to pay off your mortgage following which there is no need for mortgage renewal.
What to expect from your mortgage renewal?
The alert: Your Mortgage renewal alert is most likely to be sent to you via snail mail or e-mail at least three weeks prior to the end of your mortgage term. This is the standard procedure by lenders who are federally regulated. This mail will include information such as statements, payment frequency, current balance etc along with a mortgage renewal form which you can choose to sign or not.
The opportunity: If you are not signing the mortgage renewal form it means you are either ready to pay off your loan or are looking at a new lender or want better terms of mortgage with the same lender. The latter two also mean you are looking for better or altered terms of mortgage as per your current requirements as against the time when you had first taken the mortgage. The signing of a new term also means you are entering into a new mortgage contract.
The signing of mortgage renewal | How we can help you
Most of us are likely to sign the renewal form in our mail as is and send it back so that the mortgage is renewed and we are at ease. The original lenders are banking on you to give in to mortgage renewal signing and skip the tiring process of looking for a new mortgage and go through the pain of documentation again. Here's where we come in handy. We will look around for the best deals for you so that you save both your time and money along with the opportunity of bagging better mortgage terms as you go.
Should you switch lenders?
While you save a lot of money by switching lenders, it does come with some immediate costs such as discharging the old mortgage, registering a new one, enlisting lawyers, paying legal fees etc. If you have a considerable time left before you pay off your mortgage, the money saved by signing with a new lender and better terms will help you in paying the main amount quicker. However, if your mortgage is about to end sometimes it is better to stick to the original lender even if switching to a new one may look attractive. We come handy here again, as we advise you what is best for your interests and help you make the decision to switch or not.
Being stable helps: When you are headed towards a renewal, make sure you haven’t developed a bad credit history and you are making mortgage payments on time else your lender can choose not to renew the contract.
LendX Financial can help you avail Mortgage Renewal easily and online. Contact us to get started.