Refinancing vs. Mortgage Renewal: Which is Right for You?
Are you thinking about making changes to your current mortgage? Do you want to take advantage of lower interest rates or access your home equity? At Mortgage Alliance Walk In Centre, we understand that choosing between refinancing and mortgage renewal can be confusing.
In this blog, we'll explore the differences between refinancing and mortgage renewal, and help you decide which option is right for you.
1. Refinancing
Considering the current rate environment, refinancing may not always result in a lower interest rate. Nevertheless, refinancing can still be a viable option for those seeking to decrease their monthly mortgage payments or tap into their home equity. This process entails replacing your current mortgage with a new one, which may offer different terms and conditions.
2. Mortgage Renewal
Now is an ideal time to explore the market and ensure that the rate offered to you is the most competitive available. Mortgage renewal entails entering into a new agreement with your existing lender, typically upon the conclusion of your present mortgage term. This option can be advantageous if you are satisfied with your current lender and do not wish to make substantial alterations to your mortgage. However, if you are unhappy with your current lender and or their renewal offer, then this would be the ideal time to switch the lender for better service and/or better rate without any cost to you.
3. Closing Costs
Refinancing can involve higher closing costs than mortgage renewal. You'll need to factor in these costs when deciding between the two options.
4. Interest Rates
Interest rates can vary between refinancing and mortgage renewal. You'll need to compare the rates and terms of both options to determine which one is best for you.
Choosing between refinancing and mortgage renewal depends on your individual financial situation and goals. Reach out to us at Mortgage Alliance Walk In Centre to discuss your options and make an informed decision. To learn more about the services we offer, click here. To contact us, click here or call us at (403)836-4460/(403) 263-3333.