When you first took out a mortgage, it was with the understanding that your monthly mortgage payments would be for an extended period of time, usually twenty years or more.
The average interest rate on a thirty-year fixed-rate mortgage is currently around 4.5% – which can fluctuate from year to year.
In general, it is good to look into refinancing your mortgage when the interest rate falls below the current average of 4.5%.
A mortgage is a long-term loan, usually for a period of 10 years. A borrower is typically given a set number of months to repay the mortgage, and then the entire amount will need to be repaid at once. However, it is possible to extend this period by renewing the mortgage.
This article will look at how early you can renew a mortgage without incurring penalties and what you should consider before you make your decision.
Typically borrowers are given 30 days from the original expiration date of their existing loan to process their application for renewal. This can be extended if they would like more time to save up money towards their new loan. In general, the longer they allow themselves before applying for renewal, the lower their monthly payments will be due on their new loans.
Renewing your mortgage is the best way to maintain your property’s value. You can renew your mortgage before it expires in order to prevent any negative impact on the property.
Different lenders may have different mortgage renewal policies, so it is important to check with your lender about how early you can renew a loan. It is generally recommended that you contact them at least six months before the expiry date.
The best time to renew a home mortgage is when rates are low and you are paying less for your monthly repayments.
Alpha Mortgage provides best mortgage renewal services in Surrey, Vancouver BC.
