Introduction:
When it comes to renewing your mortgage, it can be easy to just go with the same lender and rate you have been with for the past few years. However, taking the time to shop around and negotiate a better rate can save you thousands of dollars in interest over the life of your mortgage. In this listicle, we will be discussing 5 tips for securing the best mortgage renewal rate.
Start shopping around early.
Don’t wait until the last minute to start looking for a better mortgage rate. Start the process at least a few months before your current mortgage term is set to expire. This will give you plenty of time to compare rates and terms from different lenders and negotiate a better deal.
Know your credit score.
Your credit score plays a big role in determining what rate you will qualify for. Before you start shopping around for a new mortgage, check your credit score and work on improving it if necessary. This can include paying off any outstanding debt, disputing any errors on your credit report, and keeping your credit card balances low.
Don’t be afraid to negotiate.
Mortgage rates can vary greatly from lender to lender, so don’t be afraid to negotiate with your current lender or any potential new lenders. Ask about any discounts or special offers that may be available, and don’t be afraid to walk away if you are not getting a rate that you are comfortable with.
Consider a shorter term.
While a longer term mortgage may have a lower monthly payment, it will also have a higher overall interest cost. Consider a shorter term mortgage, such as a 15-year mortgage, to save on interest and pay off your mortgage sooner.
Look into government programs.
There are government programs available that can help you secure a better mortgage rate, such as the Home Affordable Refinance Program (HARP) and the Federal Housing Administration’s (FHA) Streamline Refinance program. Be sure to investigate these options to see if they could help you secure a better rate.
Conclusion:
By following these 5 tips, you can increase your chances of securing the best mortgage renewal rate possible. Remember to start shopping around early, know your credit score, negotiate with lenders, consider a shorter term mortgage, and investigate government programs. With a little bit of effort and research, you can save thousands of dollars in interest over the life of your mortgage.