When your mortgage renewal date comes up, you should do certain things, or you might end up with a mortgage that does not suit your needs. Almost all the lenders send out home loan renewal notices to their customers. Approximately 70% of the homeowners sign the forms without even checking the terms and conditions of the loans.
Later on, they get a shock when they receive huge bills. This article highlights some effective tips that can help you to make the best deal.
Smart and easy mortgage renewal tips
The 6 smart and easy home loan renewal tips that you must know are given below:
1 . Shop around: You can shop around in your neighborhood or can even search online for mortgage lenders. The reason is your present lender might not offer you the cheapest interest rate on the mortgage. By shopping around, you can know whether any lender is giving special offers. Also, by doing there search, you’ll be able to save a lot of your hard earned money.
2 . Ask questions: Before renewing your mortgage, you should ask some questions to the mortgage lender, or you might find later on that you have made a mistake. A good lender will be able to solve your queries. When you do your homework, you’ll know about the questions that need to be asked to the lender.read more here!
3 . Demand better service: As a faithful client of your lender isn’t it about time you are rewarded for making regular mortgage payments? You may know that your mortgage lender will not offer you better deal unless you ask for it. Hence, get in touch with your mortgage lender and ask for a better service. Some of the lenders can even offer you thelower interest rate on the mortgage loan.
4 . Don’t delay: You must begin your research on mortgage market before the mortgage renewal date. You should do your research on the mortgage market and lenders for about 3-6 months. This will help you to grab the best deal.
5 . Pay down: It is advisable to pay down the major portion of the mortgage loan when it comes up for renewal. Thereby you can lower the overall interest rate as your home loan will be a new one.continue reading this http://www.moneysense.ca/spend/real-estate/mortgages/hunting-for-a-lower-mortgage-rate-could-cost-you/
6 . Fee: When you switch over to a new mortgage lender, you’ll be required to pay a discharge fee. Most of the lenders waive this fee on request. Hence, you should ask the lender to waive this fee. You should also negotiate with the lender to lower the administrative fees.
Finally, the last mortgage renewal tip will be to consult a licensed and independent broker. These brokers have huge knowledge on mortgage products. Hence, they’ll be able to help you in finding the best deal.