5 Things to Consider before your Mortgage Renews:
1. Have you explored all your options? Once you receive your mortgage renewal statement, there’s nothing easier than simply signing on for another term. BUT WAIT!!
Allow VERICO Bava Financial Corp. to shop your mortgage renewal to a number of lenders who are eager to win your business! We analyze your mortgage needs to ensure you don’t miss any money-saving opportunities.
2. Are you comfortable with your payments? If you’ve been feeling financially strapped each month making your mortgage payments, this could be the time to reduce them to a more easily managed level. On the other hand, if you’re earning more, why not pay down your mortgage faster and save thousands of dollars in interest over time? While increasing your payments will raise your monthly costs now, you’ll ultimately save on interest in the long term and can prepare for that fabulous, mortgage-free lifestyle.
3. Could you use your home equity to fulfill other goals? Refinancing a mortgage can be one way to free up cash you need for other things and mortgage renewal time is an ideal occasion to review all your options. Your priorities may have shifted since you first bought your home, and your cash flow needs can shift too. Things like paying for a child’s university education, or a major purchase such as a vacation property may call for spending money on things other than your home.
4. 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. It’s best to base your decision on your personal situation, not what you read in the news, and tailor your mortgage renewal around your needs. We can help you decide whether to opt for fixed or variable rates — and we don’t want you to lose any sleep over your decision!
5. Are you thinking about a major renovation? You know that projects such as a new kitchen or an addition 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 an additional line of credit or keeping your monthly mortgage payments low so you have money on hand to finance the renovations.