Posted On Dec 11, 2024

How Your Mortgage Renewal Could Save You Thousands

Did you know that your mortgage renewal could be one of the most impactful moments in your financial journey? Many homeowners simply sign their lender’s renewal offer without exploring their options—often leaving thousands of dollars on the table.

In this video, I share the real-life story of Ted and Amanda, who turned their mortgage renewal into a financial game-changer. They didn’t just accept the first offer they received. Instead, they explored their options and made smart decisions that saved them $86,130 in interest and helped them pay off their mortgage 11 years and 5 months sooner.

Why Your Renewal Matters

Your mortgage renewal isn’t just a routine step; it’s an opportunity to:

  • Secure a better rate: Rates vary between lenders, and shopping around could save you thousands.
  • Align your mortgage with your financial goals: Whether you want to pay off your mortgage faster, consolidate debt, or improve cash flow, renewal time is your chance to reevaluate your strategy.
  • Take advantage of prepayment privileges: Many lenders offer prepayment options that allow you to pay down your principal faster.

Ted and Amanda’s Story: A Renewal Success

Ted and Amanda faced a higher renewal rate from their existing lender. Instead of signing the renewal offer, they:

  1. Shopped around: They explored offers from multiple lenders and found a more competitive rate.
  2. Reviewed their financial goals: They wanted to be mortgage-free sooner, so they prioritized prepayment privileges.
  3. Made extra payments: By using their new lender’s prepayment privileges, they reduced their amortization period significantly.

The result? They saved $86,130 in interest and shaved nearly 11.5 years off their mortgage.

How to Turn Your Renewal Into a Financial Opportunity

Here are three simple strategies to make the most of your renewal:

  1. Shop Around for the Best Rate
    Don’t settle for your lender’s initial offer. Reach out to a mortgage agent (like me!) to access a variety of lenders and secure the best rate possible.

  2. Leverage Prepayment Privileges
    Use lump-sum payments or increase your monthly payments to reduce your principal faster. Even small extra payments can lead to huge savings over time.

  3. Reassess Your Financial Goals
    Consider how your mortgage fits into your broader financial picture. Do you want to pay it off faster? Free up cash flow for other investments? Your renewal is the perfect time to realign your strategy.

Are You Ready for Your Renewal?

Don’t leave money on the table by signing the first offer you receive. Let’s explore your options together and create a mortgage strategy that aligns with your goals.

📱 Contact Me Today:

Disclaimer

The information provided in this blog is for educational purposes only and does not constitute financial advice. Mortgage rules and market conditions can change, so always consult a trusted professional to discuss your unique situation.

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