The year 2019 is officially here, and the mortgage rates for 30-year fixed and 15-year fixed mortgages went down, making the very first decrease on mortgage rates of the year. It was reported earlier this week that the 30-year fixed mortgage lost about 11 basis points compared to last year.

So technically, if you borrow $100,000, you’ll have to pay just over $500 a month based omg he current average rates. However, more and more people are looking into doing a renewal on their mortgages but doesn’t exactly know what are the steps they need to take to benefit them on the long run. Here are a couple of tips when renewing your mortgage.


Before you get into it, you must first understand how the overall mortgage renewal process works. Basically, those who wish to make a change such as renewing their terms with their mortgage holders, have a monthly payment routine which is known to be the amortization period.

Some people who get their mortgages tend to not think about the renewal process at all. It is perfectly understandable though since no one would want to worry about making a renewal after they literally just had their mortgage approved. However, it is also inevitable to not worry about since eventually your term will be up and you’ll have to deal with it anyways.

This is actually a great opportunity for you to renegotiate with the terms of your contract which includes how long your next term will be along with the interest rates, which may either be lower or higher. Some people make changes so that it would be able to adapt to their current situation most especially if a lot of things have changed in the past few years.

There will most likely be either a mail or an email that will be sent to you when your mortgage is nearing its end. It will include your current balance, payment frequent, as well as all your normal statements. This letter may come with a form that you can sign and send back, however, those who don’t really negotiate with their lenders regarding the new mortgage agreement, tend to lose a lot.


This is where the tips and tricks come in handy, the very first thing you must remember is to not immediately sign the renewal letter that comes to you. It is ideal to do your own research regains the current mortgage situation in the market including the interest rates, that way you’ll know how to negotiate with your lender.

If you know anyone that can help you understand certain things regarding the renewal process, then it is best to seek help from them, that way you’ll have a hands-on approach on how to handle things. Another thing would be having to consider the financial institution’s reputation as well as their flexibility on their rates and pre-payments.

That is because it is possible to change lenders but it will be way more stressful and time-consuming so it’s best to pick the one that is most suitable for you since this will be a long-term agreement.

One thing that most people don’t really think about when their renewal mortgage date is coming, is how exactly their credit score will affect it. Mortgage experts said that the credit score plays such an important part in this situation, that is because if you have a bad credit score because of you not paying your debt on time, then you’ll most likely be offered a risk-based rate.

No one would want to lend money to someone who doesn’t pay on time, it’s all about business after all. Which is why it is best to pay off all kinds of debt that you have way before you renew your mortgage. That simply says how responsible you are when it comes to paying off any loan you have and they would entrust you to be offered a much better rate.

This is why it is always best to be prepared before you even think about signing your renewal letter. Most people make sudden decisions and end up getting a bad deal from their lenders just because they didn’t think it could go that bad. Based on the recent survey, those who immediately signed their renewal letters regret their decision.

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