A lender’s goal is to always to keep you with them as long as they can, but it doesn’t necessarily mean they have your best interest in mind. The “early mortgage renewal” offer is a great way for lenders to keep you as long as possible since a contract can range from a number of years. It also stops the homebuyers from comparison shopping.
While some early mortgage renewals can be a good decision, any offer should always be considered and compared with. You should always have in mind that with research, there could be the potential of a better contract to be found with another lender. Sometimes the fees of switching to another contract could even be considered cheaper than staying at the same rate. If there is another contract that appeals to you, make the necessary calculations to see if a small fee is worth taking when saving for the long term.
While renewing your mortgage seems like you are getting the same deal before, you always have to consider the risks of rates increasing. You could ultimately be paying a complete different sum of money even though you signed the exact same contract as your previous one. This is why it is in the best interest to always look around for better deals when your contract is complete. The one you were with could have been the best at its time, but now there could be so many other options to consider when finding the lowest and best rates.
At Monster Mortgage, our agents can help you with these types of decisions and explain to you anything that you are unsure of. Our agents are here for you and will do our best to figure out if you should take the renewal offer or find something that can be even more beneficial to you.
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