Upcoming renewal? I will teach you how to play the game with your current lender first.
Current Mortgage Lender - Mortgage Renewal Questions
The answers to the following questions will assist us in determining your overall options. It may be better to renew with your current lender or arrange a no fee mortgage transfer to a new lender offering a better rate and or better terms and conditions. As a Mortgage Professional it's my job to tell you the best option based on your financial needs.
Feel free to email these questions directly to your lender but don't show them the strategy at the end!
1) What is the exact date my mortgage comes up for renewal?
2) What is the approximate balance when my mortgage comes up for renewal?
3) When my mortgage comes up for renewal what will be the remaining amortization?
4) What is the earliest date you will guarantee and interest rate for my renewal?
Note: most lenders will only guarantee a rate 30 days in advance of renewal. Some lenders will give an indication of the rate if there is no change between now and 30 days prior to renewal but that is not what you are looking for. You need to know what the earliest date is they will guarantee a rate.
5) If my mortgage was coming due for renewal today what is the best rate you will offer on the following terms:
6 month fixed/closed
1 year fixed/closed
2 year fixed/closed
3 year fixed/closed
4 year fixed/closed
5 year fixed/closed
5 year variable/closed
7 year fixed/closed
10 year fixed/closed
6 month open
1 year open
Regardless of what term you have in mind for renewal it is important to find out what your current lenders best rates are for all of their terms to give us a better idea at all your options.
6) What are the current fees for the following:
a) Renewal with you?
b) Transfer fee from you to new lender at renewal?
Strategies With Your Current Lender
When you call or go in to see your current lender the strategy is to get them to show you their best rates before we decide if there is a better strategy elsewhere by shopping around for you.
Many lenders will quote you a rate for the term you are interested in an say, “if you get a better rate elsewhere come back and see us and we will see if we can match it”. When they make you do all the work and all they do is try and match it, that is a waste of your time and ultimately money.
Be open with them, play hard ball and get them to show you their cards first.
Tell them your ask is an offer of their best rates up front and that once you have them you will be discussing with your Mortgage Professional. If you are offered a better rate with a comparable mortgage solution then your current lender will be losing your business and you won’t be coming back to see if they can get you a better rate. If they need a day or two to review, give it to them.
Don’t let them make you play their game. Be in control of your negotiations. You don’t have to agree to anything they offer. Get the rates and call me.
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