When the term of your current mortgage is coming to an end, you will have two options- one is to sell your house property that you had pledged as a collateral asset, the other thing to do is to renew your mortgage for a fresher term. If you have decided to sell your property, then it implicitly means that you have decided to close your mortgage agreement. But if you still want to continue leaving in your current house property, you need to renew your current mortgage.
Your bank would notice you about the mortgage renewal usually a fair 20 days ahead of it. You may need to make some decisions during that time as to whether you want to take the new mortgage with the same bank or new one, the terms on the new mortgage etc. Here is how you can go about renewing your mortgage-
Loan specifications
You may have to first make a list of your specifications on your new mortgage. The main points are the term of the loan, the monthly repayment you are ready to pay and the interest rates. You can easily decide on this as you will have an experience paying your current loan. If there are any difficulties in terms of repayment and the term with the current loan, you can get them modified in your fresh loan. This can also be decided by taking into account your income and debt levels.
Start the search
You can either continue your mortgage with your old lender or find a new one for mortgage renewal. If you have decided to opt for a new lender, you may have to do some homework. Start your search. You can seek the help of your friends to get the information on their lenders. But interest is the best source of information for you.
Browse through different lender sites, compare the rates and come to a decision. You may also look out for any special offers some lenders might be providing.
Seek the help of Mortgage brokers
If you haven't been able to find any good lender online, you can take the help of a good mortgage broker. They can help you search for the type of loan you are looking for with the lender information they maintain.
Negotiate
Once you find a lender, you can negotiate with him or her on the terms. You can get them to agree to your loan specifications with the help of your mortgage broker. On the basis of your repayment records, the lender will be able to agree. But if you have had any defaulting issues, it might be a bit difficult to negotiate right to your terms.
Discharge fees
Once you decide to make a switch to the new lender for mortgage renewal, you will be required to pay some amount as discharge fee for your old lender. If you maintained a good repayment record with the lender, you can make requests to waive off the discharge fee.
These are a few tips you can follow to renew your mortgage.
Your bank would notice you about the mortgage renewal usually a fair 20 days ahead of it. You may need to make some decisions during that time as to whether you want to take the new mortgage with the same bank or new one, the terms on the new mortgage etc. Here is how you can go about renewing your mortgage-
Loan specifications
You may have to first make a list of your specifications on your new mortgage. The main points are the term of the loan, the monthly repayment you are ready to pay and the interest rates. You can easily decide on this as you will have an experience paying your current loan. If there are any difficulties in terms of repayment and the term with the current loan, you can get them modified in your fresh loan. This can also be decided by taking into account your income and debt levels.
Start the search
You can either continue your mortgage with your old lender or find a new one for mortgage renewal. If you have decided to opt for a new lender, you may have to do some homework. Start your search. You can seek the help of your friends to get the information on their lenders. But interest is the best source of information for you.
Browse through different lender sites, compare the rates and come to a decision. You may also look out for any special offers some lenders might be providing.
Seek the help of Mortgage brokers
If you haven't been able to find any good lender online, you can take the help of a good mortgage broker. They can help you search for the type of loan you are looking for with the lender information they maintain.
Negotiate
Once you find a lender, you can negotiate with him or her on the terms. You can get them to agree to your loan specifications with the help of your mortgage broker. On the basis of your repayment records, the lender will be able to agree. But if you have had any defaulting issues, it might be a bit difficult to negotiate right to your terms.
Discharge fees
Once you decide to make a switch to the new lender for mortgage renewal, you will be required to pay some amount as discharge fee for your old lender. If you maintained a good repayment record with the lender, you can make requests to waive off the discharge fee.
These are a few tips you can follow to renew your mortgage.