Mortgage Blog
Do you have a renewal coming up in 2024, 2025, or 2026?
April 22, 2024 | Posted by: Sharon Patton
Do you have a renewal coming up in 2024, 2025, or 2026?
I wanted to bring to your attention some significant information in the mortgage market that may have implications for your financial planning. Approximately 60% of mortgages are slated to mature within the next three years. This includes individuals who opted for 5-year terms and those who selected 3 and 4-year terms in recent years.
All of these mortgages initially qualified at a rate of 5.25% or higher. Let's look at some strategic measures to help offset the higher renewal rates.
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Increase Your Payment: This will serve a dual purpose. It will contribute to paying down a portion of your mortgage and assist in adjusting your budget to accommodate a potentially higher payment upon renewal.
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Lump Sum Payment: Making a lump sum payment towards your mortgage principal is an effective way to reduce the overall amount owing and your future payments at renewal.
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Switch to Accelerated Payments: Consider transitioning to an accelerated weekly or bi-weekly payment schedule. This approach enables you to make additional payments over the year, effectively reducing your mortgage amount under the current, presumably lower, interest rate.
If you find yourself in a situation where your mortgage is approaching renewal and you would like to discuss a personalized strategy, tailored to your specific circumstances, I invite you to reach out.We can schedule a meeting at your earliest convenience to explore viable options and ensure you are well-prepared for the upcoming renewal. We look forward to the possibility of assisting you in optimizing your mortgage strategy.
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