When was the last time you did an annual mortgage check-up? This routine review can often be overlooked, but is super important to complete if you have a mortgage!
The purpose of this check-up is for your mortgage advisor to review the home loan terms on your existing mortgage. At this time you can discuss any changes to your financial situation in order to ensure your loan structure still works for you and aligns with your financial goals and current life circumstances.
As well as reviewing your mortgage details and any changes to your finances, your mortgage advisor can discuss new loan products, compare interest rates, and check your credit score.
Here is an overview of the information that will be discussed:
Has your income decreased since the inception of your loan? If your income is less than it was at the time you started your loan, you may be interested to see if you can refinance your mortgage at a lower interest rate or monthly payment. Note that you’ll need a strong enough income to support the application and gain approval and your mortgage broker can advise the best amortization and terms for your situation.
Has your income increased since the inception of your loan? If yes, you might have space in your budget to pay down your mortgage at a faster rate, saving you thousands of dollars in interest in the long run.
Has your credit score improved since you closed your loan? If yes, you may be able to refinance your loan at a lower interest rate.
Have home values increased in your area? If they have significantly increased in your area, your home value could also have increased. This poses an opportunity to access the equity in your property to pay off any high interest debt or refinance for your unique financial needs.
What are your financial goals? These could include paying off your mortgage quicker, or retiring earlier, etc. Your mortgage advisor will take your goals into consideration when giving you direction on how restructuring your mortgage could help you in achieving your financial goals.
What are your future plans for your home? If you’re planning to move in the near future and want to sell your home, it might not make sense to refinance your mortgage and lock into a new multi-year term. Alternatively, if you’re planning to stay in your home for the foreseeable future and plan to complete home renovations to improve its quality, you may want to consider refinancing your mortgage to free up money from the equity of your home.
What are the benefits of conducting an annual mortgage check-up?
The potential to save money
The opportunity to reduce your debt faster, and pay less interest in total
A chance to consolidate high-interest debts into one monthly payment
Seeing how restructuring your mortgage terms to better fit your current financial circumstances will aide in your overall wealth goals
Are you ready to schedule your annual mortgage check-up and see what could be of benefit to you? Reach out and let’s set up a chat!
☕️ Chad Eliason⠀⠀⠀⠀⠀⠀⠀
250.804.9874⠀⠀⠀⠀⠀⠀⠀
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