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Mortgage Renewal

Mortgage Renewal

Mortgage renewal is the process of renegotiating the terms of a mortgage loan at the end of the
loan term, typically every 5 years, allowing the borrower to continue paying on the loan without
having to go through the process of applying for a new mortgage.

When a mortgage loan is set to expire, the borrower will typically receive a renewal offer from
their current lender, outlining the new terms and interest rate for the loan. The borrower has the
option to accept the renewal offer and continue paying on the loan as before, or to shop around
for a better interest rate and terms from another lender.

When considering a mortgage renewal, there are several factors that a borrower should take into
account. One of the most important is the interest rate, as a lower interest rate can result in
significant savings over the life of the loan. It’s advisable for the borrower to compare the interest
rates offered by their current lender with the rates offered by other lenders, including online
mortgage brokers and banks, to ensure they are getting the best deal.

Another important factor to consider is the terms of the loan. Some lenders may offer flexible
terms, such as the ability to make prepayments without penalty or the option to convert to a
fixed-rate mortgage, which can be beneficial for the borrower.

It’s also important for the borrower to review the mortgage statement for any outstanding
penalties for breaking the mortgage term, or any unexpected fees, as these will factor into the
decision of renewing the mortgage or not.

When renewing a mortgage, a borrower may also want to consider the value of their home. If the
value of the home has appreciated since the original mortgage was taken out, the borrower may
be able to refinance their mortgage and access some of the equity in the home. This can be a
useful way to pay off other debts or make home improvements.

It’s advisable for the borrower to consult with a FIG mortgage specialist before renewing their
mortgage to understand the options available and how it would affect their specific case.
In summary, mortgage renewal is an opportunity for a homeowner to review and negotiate the
terms of their mortgage loan in order to find the best option for them. Taking the time to shop
around for the best interest rate and terms can save the borrower a significant amount of money
over the life of the loan and Foreclosure International Group is here to assist you at every step.