mortgage simple definition: Mortgage Renewal

Mortgage Renewal

Mortgage Renewal. 15-Year Fixed-Rate Versus 30 Year Fixed-Rate Mortgage Comparisons 2019

Mortgage Renewal video duration 2 Minute(s) 25 Second(s), published by Capital Forever on 22 09 2019 - 20:03:00.

What is a mortgage renewal? A mortgage renewal is a new agreement to extend or renew mortgage terms with your mortgage holder
What do I need to know?. 15-Year Fixed-Rate Versus 30 Year Fixed-Rate Mortgage Comparisons Of the two mortgage term options is the 15-year fixed rate mortgage or 30-year fixed rate .

What is a mortgage renewal? A mortgage renewal is a new agreement to extend or renew mortgage terms with your mortgage holder
What do I need to know?. In this educational series, Carrie Becker and Jessie Gill, Mortgage Partners from Traditions Mortgage in South Central PA, explain some common terms used in 15-Year Fixed-Rate Versus 30 Year Fixed-Rate Mortgage Comparisons Of the two mortgage term options is the 15-year fixed rate mortgage or 30-year fixed rate .

What is a mortgage renewal? A mortgage renewal is a new agreement to extend or renew mortgage terms with your mortgage holder. What do I need to know? Before renewing your mortgage, there are some important things to keep in mind. Are the current interest rates better than the interest rate of your current mortgage? Also, are they expected to increase or decrease? Has your income increased since you first took your mortgage? What are the costs of switching mortgage holders? What are the pros? You don’t have to spend time applying again. Your lender simply sends you your renewal. In doing so, you can avoid the stress test and having to requalify again. Opportunity to negotiate a lower rate or change the terms of the mortgage. What are the cons? The time you’ll spend applying for a mortgage again. Costs with switching mortgage holders such as prepayment penalty of either three months interest at your current interest rate or the interest rate differential. What does this look like? For instance, a mortgage balance of $200,000 with one year left on the term, at 5 percent. How is the penalty calculated? An amount equal to 3 months’ interest on balance or The interest rate differential IRD. How much is the penalty? If renewed early, you could attain a five-year fixed rate of 3.64%. Canceling will be $2,500 if the lender went with a three month penalty or $5,400 in IRD. However, you would be lowering your rate and saving roughly $2,700 in the first 12 months.