Getting your first mortgage is a major step forward and it involves quite a bit of work. Most people see mortgage renewal as nothing more than a chore that they would like to avoid. What these people don't realize is that the mortgage renewal period is actually a great opportunity to save money, or to pick up more favorable mortgage terms. With help from an experienced mortgage broker you can easily improve your mortgage and save yourself a little money in the process.
Shop Around for Better Rates
One of the best reasons to use a broker is that they aren't affiliated with any one lender and are more than willing to help you shop around for the best renewal rate out there. When the time comes to renew your mortgage make sure that you have as many options available to you as you can. By comparing many different lenders you can find out if you are currently getting the best interest rate on your mortgage, or if you can land a better deal instead. Thanks to a wide variety of options through a broker you can often save thousands of dollars by using their services.
Free Transfer to New Institution
Most homeowners assume that when they transfer to a different lender they are going to have to pay a transfer fee, but this isn't the case. The new lender who agrees to pick you up for your mortgage renewal will pay the transfer fees for you. This means you can get a lender who offers better terms and you won't have to pay anything to switch over to them.
A Mortgage Broker Examines More than Just Interest Rates
Relying on a mortgage broker to find you lenders isn't just about interest rates on your mortgage renewal. Most brokers will take a close look at many other aspects of a renewal agreement as well. They will examine things like whether the account has a variable or fixed interest rate, what the amortization rate is, and what sort of payment policy the plan relies on. You may decide it's worth it to pay a slightly higher interest rate to go with a company that locks their interest rate in and also has a more lenient payment policy. This is all information that you can research yourself, but having a mortgage broker do the research for you is simpler.
Start the Renewal Process as Soon as Possible
Don't be one of those homeowners who waits too long to start looking for a new renewal on their mortgage a few weeks before the period is up. Instead begin looking for the best renewal rate about six months before you are actually due for the renewal. Most lenders are willing to guarantee you a renewal rate for up to six months before the time of the renewal. Starting earlier gives you the time you need to really do your homework and find the best deal out there.
Choosing a Mortgage with New Terms
It's simple to renew your mortgage with exactly the same terms that you were following previously, but that may not be in your best interest. For instance if you received a large promotion between when you got your mortgage and time for your renewal you could reduce the amount you spend in interest by upping the payment amount and reducing the length of your mortgage. A mortgage broker can help you look over options like this and determine what will work best for you.