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Mortgage With Nicki

Common Mortgage Renewal Questions & Answers

Your Mortgage Renewal Questions Answered

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Many homeowners dread mortgage renewal time, especially when interest rates are rising as they are today.It means you’ll likely be resetting your mortgage at a higher rate, with higher monthly payments. But as always, you have options. Should you renew early to avoid even higher rates? Or perhaps refinance to lower your monthly payments? We’ll answer these questions and more to ensure you can face your next mortgage renewal with confidence. 

How early can I renew my mortgage?

You’re generally advised to start thinking about your mortgage renewal at least six months before the end of your term. This ensures you have ample time to speak with me about your situation and shop around if you’re not happy with your current lender’s renewal offer. That said, some lenders allow you to renew early by as much as six months. That means, depending on the lender, we can start the process and secure your rate as much as 10 months out, which could be very valuable if mortgage rates continue to increase.

Should I renew early to beat rising rates?

If you’re hoping to lock in at today’s rates early—more than four months in advance of your renewal date—to beat any further rate increases, you could face a prepayment penalty for terminating your contract early if the lender doesn’t have an early renewal option. In this case, we’ll need to do the math to ensure the move makes financial sense.

Should I accept my lender’s renewal rate offer?

Anyone with negotiation experience knows to research the first offer you receive. While it may be tempting to simply sign the dotted line and avoid further hassle, you’ll potentially be leaving money sitting on the table, with a better renewal rate possible with a little bit of haggling. Just make sure your lender can’t call your bluff. Due to government regulations, should you choose to switch lenders for a better rate, you will need to be stress-tested at the minimum qualifying rate, which is currently 5.25%, or the rate offered by your lender plus 2% – whichever is higher.If you plan to shop around, be sure your financial situation hasn’t changed and that you’ll be able to re-qualify with a new lender. 

Does it make sense to refinance?

If you are facing a significantly higher rate at renewal and are worried about the increase in your monthly payments, refinancing your mortgage is another option and can be done on your renewal date without penalty in most cases. You’ll be taking out a brand-new mortgage, complete with a new rate, new term and possibly a new amortization period. Extending the amortization can allow you to withdraw funds for renovations, investments, etc., or lower your monthly payments to improve cash flow.

Allow me to help!

If you’re feeling stressed about the possibility of your payments increasing or your mortgage is coming up for renewal in the next 12 months, let’s review your options. I’ll be happy to explain all of the above options in further detail and help and guide you through the entire process as your mortgage broker!

 
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Testimonials
What My Clients Say
Katelyn Perry
Katelyn Perry
2023-04-25
Nicki did a fantastic job of breaking down the whole process! As a first time home buyer with a slightly different situation Nicki made it very straightforward and was always super quick to answer any questions. I could tell she was looking in the best interest of myself and made sure I was able to get approved and within the budget I could afford. She kept in constant contact even when things were slow going. I’m grateful to have such a wonderful mortgage broker that took my concerns and questions very serious. I can honestly say I’d recommend Nicki to anyone needing a mortgage broker!
Bob Doornenbal
Bob Doornenbal
2022-10-04
Sometimes life throws you curveballs and in my case I needed someone with extensive mortgage knowledge to focus on a solution and not the problem. Nicki was referred to me after I had tried so many others and she quickly understood my challenges and went to work on the solution. She is very consultative, responsive and easy to deal with. Highly recommended for anyone looking for any type of mortgage.
Tyler Scott
Tyler Scott
2022-09-06
Nicki was beyond amazing. She spent the last year + working with me to help buy my first help. From answering thousands of questions, to providing honest critiques to get me in the right direction. Will use again in the future, and highly recommend!
Karen Bee
Karen Bee
2022-06-03
Nicki made the process almost painless, and was helpful and supportive every step of the way with my complicated and unique mortgage needs. Highly recommend!
Lori Sealock
Lori Sealock
2022-05-24
Nicki has been absolutely FANTASTIC to deal with regarding our new mortgage. She is very knowledgeable and answered all our questions. She makes you feel so comfortable throughout the mortgage process and she is very easy to talk to and a great listener. She presented our options and helped us pick the best mortgage for us. She was there for us 24/7 whether is was a call, email or text. I highly recommend you give her a call! Thank you so much Nicki for all you done for us! Lori & Derek
Mitchell Heber
Mitchell Heber
2021-12-22
I don’t have enough good things to say about working with Nicki. Always takes the time to answer any questions you’ve got, regardless of how in depth or rudimentary they are.
morgan horn
morgan horn
2021-12-02
We bought our first home with Nickis help last month. I Loved working with Nicki. She was positive, patient, and she had all of our stuff worked out within days of us making our offer! I also love that she is a local working momma getting her cut from Big Bank. Thanks Nicki!
Chris Calve
Chris Calve
2021-11-24
Nicki was fantastic to work with. She was very professional and made getting my mortgage painless and easy.
Travis Fleming
Travis Fleming
2021-10-24
Nicki was very helpful and knowledgeable from start to finish! She answered any questions I had with ease and helped me understand everything I needed to know about getting my first mortgage. I would absolutely use Nicki again as my mortgage broker and would have no issues recommending her to anyone else. Thanks a lot Nicki!
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