Mortgage renewal is your perfect opportunity to renegotiate at the end of your current term to make sure your home mortgage aligns with your financial goals. Check out our Learning Center to learn everything you need to know for an easy mortgage renewal.
What to Consider When Renewing your Mortgage
If you’re coming up for a mortgage renewal, there are several factors you should consider before moving forward with any option. Mortgage renewal is your opportunity to renegotiate the terms of your mortgage at the end of your current term. You may have to renew several times throughout the course of your loan until you pay off your mortgage. This is an important time to reassess your mortgage to make sure it aligns with your financial goals. Consider the following:
- When do you plan to pay off your loan? If you plan to pay it off sooner, you may want to go with an open mortgage to avoid prepayment penalties. Even with a higher interest rate, you will pay less interest overall if you choose to pay things off more quickly. If you don’t plan to prepay and want to stick with a lower payment, a closed mortgage could work better for you.
- Do you have plans to access equity in your home? If you think you might want to access your home equity during your next term, it might be a good time to consider a home equity line of credit (HELOC) with your mortgage.
- What’s your financial situation like? If your financial situation has improved or changed since your last mortgage, it’s worth comparing options with your bank and a brokerage like Edison Financial.
How Does Mortgage Renewal Work?
Lenders will typically begin the renewal process up to 6 months before the end of term, but in any event, they must provide you with a renewal statement, usually at least 21 days prior to the expiration of your current term
Why Renew with Edison?
We strive to make getting a mortgage as comfortable with a flexible process you can begin from your couch in 10 minutes using our simple form.
Edison works with a diverse group of over 50 lenders to provide multiple options at lower rates than our competitors.
Our unique 4-step process is designed with you in mind. With a quick turn around and seamless application, we believe everyone deserves an effortless process. We leverage technology to make the mortgage process efficient, transparent and comfortable. Visit our Learning Center to learn more about the differences between a broker vs. a bank and which one is right for you.
Connect with an Edison agent today to walk you through your renewal options.