Homeowners face a lot of difficulties while renewing their existing mortgage and having a mortgage protection insurance helps them greatly with the same. They can choose whether they want to stay with the same provider or want to go with a newer one. Different lenders are providing various offers to the borrowers. In this article, you will get the answers of the top five questions that may arise in your mind while renewing a mortgage.
How To Renew Your Existing Mortgage?
Usually a month before the expiry of the existing mortgage, a renewal statement is sent by the lender and you will also receive the same. Now, this renewal can be done in three ways. If you are satisfied with the current lender and existing mortgage, you can choose to stay with same. Another option is negotiating with your current lender. If you wish to receive better rates but don’t want to change the lender, you can negotiate with your current lender for the same. There are chances that they will offer a better rate to retain you with yourself. The third option is handing over your mortgage to a different lender. You can talk to a new lender and they will offer you different rates for your existing mortgage and you can choose one that offers the best for your mortgage.
There are online portals where you get in touch with various lenders and discuss various plans available for you. Their representatives will listen to your specific requirements and will suggest the best option for you. You are suggested to talk with the representatives from different providers and get to know what are different options available with them. Comparing the different benefits offered, you can go with a lender that promises you the cheapest rate.
How To Get A Cheaper Plan?
Getting a cheaper mortgage plan isn’t that tough now. Now, you can receive cheap mortgage protection quotes at your fingertips. Insurers are providing various plans to the homeowners for their different requirements. You can visit the official sites of top insurers in your state and fill your requirements in a small online form to receive multiple quotes easily. Insurance agents will contact you with the best plans available and explain their specific benefits. Depending on your specific requirements, you can shortlist the top four or five plans and compare them for their features and benefits.
What To Look For in a Plan?
There are certain things you are supposed to look for while choosing a plan. First of all, you should look at the interest rate they will be providing a mortgage at. A small difference in the interest rates can help you save a lot over the years and hence you are supposed to compare the various interest rates well before they choose one. As mentioned above, talking with different lenders will help you understand the different rates going on in the markets. Other than this the amortization period and payment schedule have a great role in deciding the price of the mortgage and you are suggested to go for one that suits your requirements the most.
What Are The Fees You Need To Pay?
You don’t need to stay with the same lender for the whole mortgage period even if you are not getting a good deal. Once the renewal time approaches, you are supposed to look for a better deal from another lender. When you have found a better deal and are planning to transfer your current mortgage, you will have to pay the discharge fees to your current lender. This fee varies from lender to lender but there are ways you can get rid of paying this. Due to high competition in markets, lenders are offering to pay for the discharge fee to attract more borrowers. With some shopping around you can find a lender who will pay this on your behalf.