When you ask those that work in the real estate industry, from people who sell homes to those that work as mortgage specialists, what the biggest mistakes home buyers make, one of the things that you will hear again and again is failing take the opportunity to renegotiate their mortgage when the time comes. Many people simply sign the forms that arrive in the mail and don't realize that they could be saving themselves thousands of dollars or paying off their loan faster. If you really want to make the most of choosing one of the real estate listings on the market and making it your home, you need to know what you're doing when it comes to mortgage renewal.
When it comes time to renew your mortgage, the first thing that you should do is check the current market. Know what lenders are asking today in terms of interest rates and how that compares to the rate you're paying. If you signed up for a variable mortgage plan when you bought your home then there is a good chance that you have stayed up to date with the current rates. But, those that have a fixed rate mortgage don't need to worry about these changes on a regular basis.
Reassess your financial situation. It has likely been five or ten years since you first signed your mortgage agreement and a lot can change during that time. While you might not be having any trouble paying off your loan you might find that a different mortgage plan still serves you better with your current finances. Some people find that they are doing much better and can put more towards their mortgage each month. Others might want to try paying bi-weekly instead of once a month. If you're looking into getting a second mortgage for a vacation home or condo for a kid who is going away to school in the future, this is also something you will want to think about when reassessing your first loan.
Talk to a mortgage specialist. Some people think that once they have gone through the mortgage process successfully once that they know everything that they need to in order to make the right decisions when renewing their loan. But, you might find that there is still some advice that a mortgage broker can give you that will make all the difference in the world. It could save you thousands of dollars in the end. You might find that you already have the best mortgage plan for your financial situation. But, it is worth it to check all of your options.