Table Of Content:
- A 30-year fixed mortgage is the most common mortgage loan term.
- Lenders assume that too many people are too busy to shop around for new mortgages.
- Mortgage renewals allow homeowners to shop around for a new mortgage.
You probably had big plans for the next few years when you signed your mortgage. When you bought your first condo, you might have imagined yourself getting a new job and settling down with Mr. or Mrs. Right. If you purchased a new house to accommodate a growing family, you might have anticipated having one or two more children within the next five years. Your lifestyle and financial needs may have changed dramatically since you signed your first mortgage all those years ago, regardless of the type of home you purchased or the type of mortgage you signed. A variety of factors, ranging from pay raises at work to having another child, can have an impact on your financial needs. Mortgage renewals are an excellent time to assess your financial needs and make changes to suit your current lifestyle better.
Consider how much a person can change over thirty years! Children are born at that time and begin to raise their own families. Over time, the house purchased by expecting parents has become a weekend retreat for the grandchildren. Even with shorter 10-year or 15-year mortgages, lifestyle and financial needs and desires can change dramatically between the time the mortgage is signed and when the mortgage is renewed. While many people choose to stay in their homes when it comes time to renew their mortgage, they do not take advantage of the opportunity to reassess their financial needs and research other mortgage renewal options.