Mortgage renewal?

Question

We have a 25 year mortgage which renews every 5 year term. What happens at renewal time? Do we have to re-qualify for the mortgage every term? Or does it automatically renew with the latest interest rate? We are not behind at all but our credit is not good like it used to be which worries us about our mortgage renewal coming up.

Answer 1

It may be difficult to read your mortgage papers but you will have to or you will have to get someone to do it for you. There are hundreds of kinds of mortgage loans out there that sound very similar.

I would imagine that you will not have to re qualify for this loan but who knows? I could tell you some bad stories about what happened in Texas during the Savings & Loan crisis in the late 80' early 90's but I really believe as long as your house payments have been on time and your mortgage company is actively making loans you will be fine.

Answer 2

If mortgage rates are low, it may be wise to sign on for a longer mortgage to lower monthly payments and in turn have more disposable income. On the flipside, if mortgage rates are high, a shorter term may be more beneficial because in the future it is likely that interest rates will lower. If you aim to pay off your mortgage at a faster rate, you may want to look into mortgage renewals that will allow for bi-monthly or even weekly payments. Everyone has different goals, so it is important that when considering mortgage renewals they are well suited for you and your family. Mortgage renewals can be complex and confusing, particularly if you are a first time buyer who has never renewed before. It is vital to negotiate terms that are beneficial to you in the long run. However, determining what is advantageous can be slightly tricky. For example, forecasting future interest rates is a difficult task, particularly to individuals who are not well versed on in the inner workings of the market.

Answer 3

the rate is probably going to change to whatever is current every five yrs - could actually go down , depending on what you started at - what do current fixed rates in your local paper look like compared to what you are paying?- try and refinance with a fixed rate mortgage before the renewal if it seems you might be looking at an increase - or try for a new adjustable rate mortgage

Answer 4

They will renew your mortgage at whatever the current interest rate is, according to your contract. If it's a five year ARM or similar, expect it to go up at least two percentage points over the original interest rate.

Answer 5

Your mortgage will be renewed at the current interest rate whether it is higher or lower. It might be higher or low. Interest rate depends on various factors. Try to take advice from experienced loan officer.

Answer 6

Send me over an e-mail when you get a chance, I have a few ideas. The problem you are about to face is that when your ARM recast's you are sure to pay a much higher payment then you are now, plus I will not fix for 5 yrs again it will adjust every month. You are in a bad program for where the market is. Let me know if you need some help [e-mail]

Answer 7

You are in an ARM, which adjusts every term, and it only goes up. I work for a company that specializes with people with not so good credit and get them into fixed rates. we have 75 investors and over 1,000 programs. Send me an email with your name, state, and phone number, and we can go from there. I can give you a free loan analysis with no cost or obligation and also tell you what you need to do to improve your credit score to get better rates and low payments in the future. Email me at: [e-mail]