A mortgage renewal or renewing a mortgage is when a home owners accepts the offer or negotiates a new term with their existing lender at the maturity date of their mortgage. A mortgage renewal or renewing a mortgage is usually done on the maturity date of the mortgage without penalty, however some lenders will allow a borrower to renew their mortgage within 6 months of the maturity date of their mortgage, without penalty.
Benefits Of Renewal or Renewing A Mortgage
The benefits of renewing a mortgage with your existing lender is that you can continue your mortgage for a new term with a new interest rate, without having to go through the same qualification steps as when the mortgage was originally obtained. Another benefit to renewing a mortgage is a borrower doesn’t have to incur legal fees as the existing lender is already registered on the title of the property.