Tips for Looking at Port Moody Mortgage Renewal Options
Waiting for the right time to renew your Port Moody mortgage could cost you more money as there are ways that you can get a better deal before your term expires. In most cases home owners will wait until the end of their term but in reality with a couple of questions and a small amount of research you may be able to renew it before the expiration date. Here are some helpful tips and things to consider when looking at a mortgage renewal.
The first thing to do is try to shop around for a new rate before the expiration date approaches. You can talk to other lenders and even inquire with your own lender about renewal options though it is advised that you wait until 6 months before the renewal date. This gives you more than enough time to get the information that you need to make the best decision.
Talking to Your Lender
Most home owners are more comfortable with sticking with their original lender when it comes to mortgage renewals and at times, it can be the easiest option. All you have to do is talk to a representative at your bank and let them know that you’re beginning to look at other lenders. In most cases you won’t be approached for a better rate (as banks lose money) but if you ask for a lower interest rate or express interest about another lender, you may be able to get what you’re looking for.
Taking a Look at Mortgage Types
There are various types of mortgages that you are eligible to sign up for and think about which ones would be the best for your personal situation. There’s the ability to get a fixed rate, which gives you a solid interest rate for the duration of your mortgage. There are also adjustable and variable rate mortgages where the interest rates may vary. Variable mortgages are where your payment will stay the same but the principal and interest percentages will differ. Adjustable means that the interest and principal will vary depending on activity in the interest market.
One of the most important things to learn about is whether you can easily switch to a longer term or convert your mortgage without facing any penalties. It is essential that home owners don’t immediately sign up for the posted rate as you very well may be able to qualify for a better rate. If you’re a long time customer or have more assets with the bank, a lower interest rate could be in your future.