Things to consider before you renew your mortgage

Your mortgage term is coming to an end and it's time to renew your mortgage.  It's easy to simply sign the renewal statement that you receive in the mail but are you going to be receiving the best rates by doing that?  Many people don't realize that there are much better options out there.  In exploring the many different lenders that are out there you can end up saving thousands of dollars, and who doesn't want that?

Here are a few things you may want to consider before your mortgage renews:

Are you comfortable with your monthly payments? If you've been financially strapped each month, this could be the time to extend your amortization and reduce your mortgage payments.  On the other hand, if you've started earning more, you now have the option to increase your payments and pay that mortgage off faster.  Who doesn't want to be mortgage-free sooner?

Do you need cash flow for other things? Your priorities may have shifted since you bought your home and cash flow needs can shift too. You may be able to refinance your mortgage to lump other obligations into it such as lingering student or vehicle loans, or accumulated credit card balances and cut your monthly payments down significantly while paying the debts off faster.

Can you handle fluctuating rates? Some homeowners are nervous about any hikes in interest rates while others are comfortable to go with the flow. Rates are tough to predict but with them being so competitive lately it may be time to decide whether or not you're ready to consider the risk and save some money with a variable rate, or if you're more comfortable to lock in your term with the fixed rate.

Are you considering selling your home soon? If you are likely to put your home on the market soon, you'll want to consider a mortgage that has more flexible terms so you're not penalized if you sell your house before the mortgage comes due.  Sometimes lenders offering the lowest rates aren't always offering the best mortgage portability and you don't want to be stuck paying a huge penalty on possession day.  

Are you thinking about a major renovation? You know projects such as a new kitchen can make your home more valuable, but the cost of having the work done can tie up a lot of money. Before you renew, look at all your financing options, which may include getting a line of credit or keeping your monthly mortgage payments low so you have the money on hand to finance the renos.

Researching all of the different lenders can be tedious and time consuming.  Save yourself the hassle and let a knowledgeable mortgage professional do the work for you.  Your time is valuable so let someone else figure out your best options for your mortgage renewal.

For all of your mortgage needs check out www.anewlovemortgage.com.