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Ben Sage, Moving Woodstock

Don’t Fear the Renewal!

Posted on October 3, 2013 by Ben Sage in Borrowing Rates, Mortgage, Woodstock Investment

I am analyzing our mortgage renewal options. There are so many different mortgage products, fixed, variable, capped, open, closed….. Will rates go up? When will they go up? Should I think 3 or 4 or 5 year? Shorter term? What’s the best choice? Prioritize monthly payments or debt reduction….. Ack!  I have a genuine case of Analysis Paralysis.

Debating, calculating, and determining our best option has caused me to stop and think: I have taken extra education in commercial real estate lending, mortgage financing, and investment real estate analysis, and if I have a hard time making these decisions, how do “normal” people decide which is their best option? (nothing personal!)  People who can’t (or won’t) whip out their financial calculator and excel spreadsheet and carefully analyze their options.  Ultimately choosing the path that works best for their family.  How do they do it??

I now realize that I should be offering more support to my past clients at renewal time. Is your renewal coming up?  Are you confused with your options? Why not send me a message and we can chat about what might be the best path for you and your family through the mortgage renewal process.

Oh and one last thing – DO NOT IGNORE your mortgage renewal. If you do, your lender will likely renew your mortgage at the posted rates. Costing you (and profiting the lender!!) thousands of dollars. Don’t do that.

Also, don’t freak out at the rates when you open the renewal document – they are legally obliged to use the posted rates on your renewal documents.  I freaked out, temporarily, until I realized what was happening.  Call them.  They can (and will) do better.

Talk to you soon!


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