Renewing your mortgage is as important a financial decision as selecting your first one. While renewing your mortgage, you are in a stronger financial position as compared to where you were before. Your home equity grows over a period of time and by decreasing your principal loan balance, you are in a good position.
Here are some helpful mortgage renewal facts:
You do not have to renew your mortgage with your current lender.
Your initial lender must inform you of the decision to renew or not to at least 21 days before the mortgage expiration date.
You are free to hire a mortgage broker to help you find the best mortgage rate and terms for your new loan.
As long as you have all your paperwork in order, such as your income verification papers, insurance, appraisal, the title, the mortgage statement and charge, etc., a renewal will only take 3-5 business days.
Preparing for renewal takes planning. If you want to ensure you get the best rate, you should start looking around at other mortgage rates and options about four months prior to your mortgage expiration.