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Your upcoming mortgage renewal provides you a great opportunity to recalibrate and plan for the future. Here’s a list of a few important things you should consider before that day approaches:

Can you handle fluctuating rates?

Some homeowners are nervous about any increase to interest rates, while others are comfortable to go with the flow. Rates are hard 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. I can help you decide whether to opt for fixed or variable rates on your renewal.

Are you getting the best rates and terms?

In a competitive mortgage environment, your good credit history can make refinancing work to your advantage. We analyze mortgage markets daily to ensure you don’t miss any money-saving opportunities.

Are you planning to sell soon?

If you are likely to sell your current home soon, you might consider a shorter-term mortgage or one that has more flexible terms so you can avoid being penalized if you sell your house before the new mortgage comes due.

Have you explored all your mortgage renewal options?

Once you receive your mortgage renewal statement, there’s nothing easier than simply signing on the dotted line for another term. While this may make sense in many cases, your family or financial situation may have changed since you first got your mortgage. Renewal time is the perfect time to look for opportunities that could better meet your current needs.

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? Renewal time is the perfect time to review your mortgage amortization.

Do you need cash flow for other things?

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, planning a career change, or a major purchase such as a vacation property may call for spending money on things other than your home. You may be able to refinance your mortgage to take this into account.

Are you thinking about a major renovation?

Home improvement 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 renovation.

When do you want to be “mortgage-free”?

If you’re planning extended time away from work or perhaps an early retirement, it may make sense to pay down your mortgage sooner rather than later. While increasing your payments will raise your monthly costs now, you’ll ultimately save on interest in the long-term and can prepare for being mortgage-free sooner.

Could you use your home equity to fulfill other goals?

Refinancing a mortgage can be one way to free up the cash you need for other things, which could even include buying another property. Mortgage renewal time is an ideal occasion to review all your options.

Questions about renewing your mortgage?

Contact me for more information. I’d be happy to discuss with you your options and provide you with a free, no-obligation consultation.

Source: http://www.scottdawson.ca/9-things-to-consider-before-your-mortgage-renewal/