Making your monthly mortgage payments can be stressful enough, but when it comes time to renew your mortgage, choosing between all the different options may just put you over the edge.
But since home ownership comes with its own set of complications and responsibilities, here are some factors to consider when you renew your mortgage that will help simplify the process.
Review the Current Market
When it comes time to renew your mortgage, it is important to ensure you review the current market. Most likely, there have been quite a few changes since you decided on the type of and the timeframe for your mortgage.
Choosing between variable and fixed rates is never foolproof, but seeking the advice of a professional and conducting your own research can improve your understanding.
Weigh your Options
By choosing a fixed rate, you have the security of knowing how much you will owe for the length of the mortgage. The current market is considerably friendly for borrowers, which makes it even more confusing to know which option to pursue. However, if the rates in the market decrease, you will have to face the fact that you are paying more than necessary.
With a variable mortgage, you take a gamble in hopes that the current rate will either remain the same (if it is already low) or dip, thus benefiting you over the next few years. If it does, you obviously reap the rewards. If the interest rate goes up, you will end up paying more than if you had chosen the fixed rate.
As you decide whether to renew or not, you need to weigh not only your options but your appetite for risk.
Explore Non-traditional Lenders
Beware of big banks that may just try to sell you what is more profitable for them. A non-traditional lender like Oppono can offer expert advice without the hidden fees. You will also receive more personalized customer service. Additionally, you can receive the advice of a professional with specialized expertise who studies the rates and can better predict what the market is going to do.
Contact us today!