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Mortgage Refinancing: At Renewal

When the time comes for your mortgage to be renewed, your lender will call you and let you know of the fact. In addition, your lender will also make it extremely easy for you to sign the papers to renew the contract with them. However, when your mortgage is up for renewal, it is the best time for you to shop around for a better deal than that offered by your current lender. Other lenders will aggressively compete for your business and may even provide you with better benefits, such as paying the fees associated with switching mortgage lenders.

The first step to getting a better deal is to go through your current mortgage plan thoroughly. Look for the rates and any other fees that may be associated with your moving your mortgage plan away from your current lender. The second step is to shop around and compare new offers from other lenders to your current mortgage. When you start to compare your current mortgage plan with new ones, you will begin to understand if your mortgage lender is giving you a really good rate that is better than others. If your current lender is giving you a better rate, you should go ahead and renew with them. However, if there are better options, you should consider switching, especially if the amount in concern is a large one or you have many years left on your mortgage. You should also check whether your mortgage allows you to make lump sum payments at any time of year or are there restrictions? The ability pay a lump sum at any time, when you have cash, will help significantly reduce the total amount you pay at the end of your mortgage term.