Should You Break Up With Your Mortgage?

It’s not you, it’s your mortgage.
 
Just because you’ve agreed on a mortgage, doesn’t necessarily mean it’s set in stone. There are several reasons why you may be reconsidering your mortgage.
 
Perhaps you’ve had a major change in your financial situation or maybe you’re interested in buying a new house. Or it could be because you feel your current mortgage rate is too high. Whatever the reason may be, it’s important to make sure that if you are breaking up with your mortgage, you understand how and when to call it off.
 
How do you know it’s the right time?
 
As of right now, are you satisfied with your mortgage terms and conditions and are they meeting your personal and financial needs? If you answered no or if you’re not sure, you may want to consider breaking your current mortgage and renegotiating a new one. As interest rates are incredibly low, now may be an opportune time to renegotiate and get a lower interest rate.
 
Consider the risks and potential fees.
 
When renegotiating or terminating your current mortgage contract, I recommend to speak to your lender first about the potential fees you would pay in order to break your mortgage.
 
Here are some potential fees you may have to pay:
  • Pre-payment/payout penalty
  • Appraisal fee
  • Fee to remove the charge on your current mortgage and register a new one (if applicable)⠀⠀⠀⠀⠀⠀⠀⠀⠀
Although you may be saving money with a lower interest rate, you may not be saving as much as you think if you wind up paying a large amount in penalty fees – possibly even more than what you would be saving.
 
If you’re currently looking for a new house and unsure if the mortgage is right for you, or if your mortgage is up for renewal soon, it’s important to speak with a mortgage broker you can trust to help you make the right decision. Give me a call at 780-288-0643 and let’s review your options to see what makes the most sense.
 

Tatum Neufeld, BComm
Mortgage Broker • Mortgage Tailors
tatum@mortgagetailors.com
780-288-0643

Leave a Reply

about-me-tatum-neufeld

Oh hey there! I’m Tatum.

Whether you are looking for a home purchase mortgage, renewing an existing mortgage, refinancing, debt consolidation, financing revenue properties or a new home construction mortgage, I take the stress and worry out of the equation.

email_subscribe

Don’t Miss a Thing!

Enter your email below to be the first to know about mortgage news, products, tips and tricks and exclusive, behind-the-scenes peeks into all things mortgages and housing.

blog

First Time Home Buyers’ Five Biggest Mistakes