If you are nearing the end of your mortgage term and are 6 months or less away from your renewal date, you should have already started exploring your renewal options with your current lender and also shop around with other lenders. A renewal is performed when your mortgage term is done and you still have a remaining balance to pay off. The best time to get started on your mortgage renewal process is 120 days (4 months) before the end of your term. This is because many lenders will allow you to renew your mortgage up to 4 months in advance without having to pay a prepayment fee or any other penalties.
What many homeowners don’t realize is that they do not have to stay with the same lender. In fact, in many instances homeowners are able to find a better rate and term if they shop around with different lenders. The expert mortgage agents at Clover Mortgage are here to help you find the best possible rate for the renewal of your mortgage. With over 40 lenders to choose from, Clover will offer you a variety of great options and will help you choose the best option for your personal needs and future goals.
What’s the difference between a mortgage renewal and a mortgage refinance?
A mortgage renewal is when you simply renew the same mortgage with your current lender without making any changes to the amount or amortization period. A mortgage refinance is when you either take your mortgage to another lender, or if you refinance it with your current lender at a different amount and/or different amortization period.
Even if you take your current mortgage to a different lender, you have the option to keep the same mortgage amount with the same amortization period or change one or both of those factors.
Getting started on your mortgage renewal early will also give you time to analyze your own finances and decide whether you want to switch your terms or switch to a different lender altogether. Depending on the way your life has changed during your previous term, you might be looking for a different mortgage option to better suit your current financial situation. A mortgage renewal gives you the chance to renegotiate the terms of your agreement and adjust your mortgage according to your financial needs. Before your term matures, your mortgage lender will most likely send a renewal offer in the mail outlining the interest rate they are offering and the term. You can show this letter to Clover Mortgage and have our agents hunt for a better rate and solution for your renewal. Please have a look at our mortgage per-approval checklist to see what documents you might be required to prepare in order to apply to renew your mortgage with a new lender.
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