Mortgage renewal, as it literally means, is the process through which one can renew their mortgage. It is a new agreement to either to continue to extend or to come to whole new terms with your mortgage provider. So, if your mortgage period has come to an end, and balance payable to your mortgage lender still remains, renewing your mortgage comes into play. And so, through a mortgage renewal, you can come to new terms with your mortgage lender depending on your financial position and other responsibilities. This process is very simple, as it only involves the approval of the renewal contract byyou. Mortgage renewal is similar to a car insurance, wherein you only receive the papers and there exists a continued process of payment, which is the premium in case of car insurance and loan installment in case of a mortgage.
We do provide some tips for the mortgage holders to follow, who plan for mortgage renewal
-Review your mortgage renewal options much ahead of your maturity period. It means start preparing for a new mortgage and check for what all options are available to you in case you opt for a mortgage renewal. Also, most of the lenders are ready to start your renewal process 4 months(120 days) before your mortgage’s maturity date.
-While you check your options, also assess your financial goals which you want to attain in the time to come. It means, throughout the period of your mortgage, a lot could change. So your original plans for which you had chosen the former mortgage plan could change by now. So you are advised to chose the renewed mortgage plan wisely by keeping in mind all your financial goals.
-Keep a check on the mortgage rates of the market. Law says that your current lender has to send you a mortgage renewal invitation at least 21 days before the maturity date. Most lenders do send the renewal slips sooner than when 30 days remain for your maturity. So you have additional time to assess the rates, policies, and maturity period of all the options available to you.
Opting for mortgage renewal with your current lender is better if there aren’t any groundbreaking differences in your choice and in the options given to you by your current lender.