It Pays to Review Your Mortgage Annually. Here’s Why.

Save Money by Lowering Your Interest Rate

People don’t think twice about scheduling annual health checks with a health provider. Everyone knows that it is critical to your overall health. Instead of letting early health problems become severe or chronic, we opt into preventive healthcare. Screenings, exams, tests, and immunizations help us avoid illnesses that would have plagued us for years to come.

Mortgage reviews work in the same fashion.

Is your current mortgage still giving you the best deal on the market today? Is it possible that you might be paying more than you should be paying? It is wise to shop for the most competitive offer when you buy your first home, and reviewing your mortgage throughout the life of your loan can pay off in the long run.

There are many life goals that homeowners might be looking to achieve. Some people are planning for a home remodel. Others are trying to collect cash to fund their child’s college, some might be striving to put more money away for retirement, and some want to pay off their loan faster. These financial goals are easier to achieve if your current mortgage meets your needs. You always want to maintain healthy finances, and annual mortgage reviews can help with that task.

There are many facts you will uncover in an annual mortgage review:

• Find out if your current mortgage is performing well with today’s interest rates.
• Is there a change in your income or living expenses? Discover if it is possible to adjust your mortgage to accommodate your existing financial circumstances.
• Are you planning a remodel? Upcoming large purchases or expenses may affect your budget.

There are numerous opportunities Community Mortgage can potentially discover during a mortgage review. 

• You might be able to lock in a lower interest rate
• It could be possible to reduce your monthly payments
• We can look into shortening the length of your loan term
• Some homeowners might be eligible to get their private mortgage insurance eliminated
• Is there home equity? It could be used however you want as cash or for a home renovation project.
• Is your goal to purchase an investment property or a second home? Annual mortgage review will tell if you qualify.

And that’s not all. Any issues with your credit that need your attention will become evident during a mortgage review. Are you questioning if you might be eligible for a specific home borrowing program, like a VA loan? Get a mortgage review, and you will find out for sure.

Mortgage professionals always recommend watching out for better mortgage offers. But to be realistic, we also understand that it is not always possible to keep an eye on every deal available on the market. So getting an annual mortgage review is a perfect opportunity to receive valuable information. At the very least, every homeowner should spring into action when their current mortgage deal (if any) ends or when interest rates change.

There will always be homeowners who will choose to do nothing. But if you don’t review your mortgage, regularly you could fail to take advantage of the savings and better deals the current market offers. Think about hundreds of dollars in monthly savings and tens of thousands over the life of your loan that a lower interest rate could provide.

Are you comfortable making your current payment, and can you refinance for lower monthly payments? It might be beneficial for you to try and pay off your mortgage sooner, so you could get advice to continue paying the same amount or even shorten the mortgage term. There are always tips that sometimes only come from financial professionals during a mortgage review.

What if your mortgage review does not result in any changes? 

Mortgage review will reduce your stress and help you sleep better, knowing you are paying the lowest rate possible and meeting your financial goals. Peace of mind is a significant benefit. You will be sure your mortgage is in the best shape, and you are on the fastest track to pay off your loan.

Many homeowners come to us for a mortgage review with the idea of refinancing. It is worth it to refinance in many cases, and in some cases, it is not. It is essential to remember that refinancing isn’t free. Costs are associated with a refinance, like appraisal fees, bank fees, title insurance, and attorney fees. These fees typically amount to two to five percent of your loan amount, and they will need to be paid upfront. So a good rule of thumb is that refinance is worth it if you’ll save at least one percent on your current interest rates.

It is essential to know if your mortgage still makes sense. If you haven’t had your mortgage checked, and you’ve been paying on it for at least three years, get in touch with Community Mortgage today for a fast, easy and free mortgage review. We’ll take a close look and see if we can help you drop your interest rate, pay off your mortgage sooner or decrease your monthly payment. We can also help refinance or renovate your home or cash-out equity to use however you want. Get your mortgage where it should be. Give us a call at (619) 692-3630 or click here to schedule your annual mortgage review today.