It might be time for a mortgage tune-up

Are you feeling overwhelmed by your mortgage payments or have a feeling you could be doing more to manage your mortgage? One of the most significant financial obligations most of us have is our mortgages. Just like a car needs regular maintenance to run smoothly, your mortgage might also require a tune-up from time to time to ensure it’s working optimally for your financial situation.

Ten signs that indicate you could benefit from reviewing your mortgage

Here are ten signs that indicate it might be time to give your mortgage a thorough review and possibly make some adjustments:

1. Interest rates have fluctuated

Have interest rates in the market changed significantly since you secured your mortgage? If rates have dropped since you obtained your mortgage, refinancing could potentially save you thousands of dollars over the life of your mortgage.

2. Your financial goals have changed

Your financial goals may have evolved since you first took out your mortgage. Whether you’re planning for retirement, getting set to send your kids off to university or college, or pursuing other investments, your mortgage strategy should align with these objectives.

3. Your credit score has improved

If your credit score has improved significantly since you got your mortgage, you might now qualify for better interest rates or mortgage terms. Some alternative lenders offer a “graduation” strategy to allow you to move from their “B” side to their “A” side. Even if that’s not an option for you at this point in time, it’s worth evaluating whether you could be getting an improved offer.

4. Your income has changed

Changes in your income, whether positive or negative, can impact your ability to comfortably manage your mortgage payments. If your income has increased, you may consider accelerating your mortgage payments to pay off your loan sooner. Conversely, if your income has decreased, refinancing to extend your amortization, or consolidating high interest debt into your mortgage, could lower your monthly payments.

5. Life events have changed your priorities

Major life events such as marriage, divorce, birth of a child, or retirement can all influence your financial situation and priorities. It’s essential to reassess your mortgage in light of these changes to ensure it continues to serve your best interests.

6. You want to tap into your home’s equity

Are you considering a renovation, buying an investment property, or helping your adult kids buy their first homes? You may be eligible for a home equity line of credit (HELOC) or reverse mortgage that could provide funds for renovations, debt consolidation, or other expenses. Gathering data can help you make an informed decision about which of these strategies makes most sense for you.

7. You’re thinking of changing from a variable to a fixed rate

Locking in a fixed interest rate can provide stability and protect you from future rate hikes. But you’ll want to review your options to make sure you’re getting the best offer possible.

8. You want to pay your debts off faster

Making extra mortgage principal payments, increasing your payment frequency, upping your regular mortgage payments, or consolidating higher interest debt into your mortgage, can help you become debt-free sooner.

9. You’re experiencing cash flow strain

Are you finding it challenging to meet your monthly mortgage payments? This could be a sign that your mortgage is no longer aligned with your financial situation. Exploring options such as refinancing could lower your payments and ease your financial burden.

10. You haven’t reviewed your mortgage in years

It’s a good idea to review your mortgage periodically to ensure you’re still getting the best deal and to explore opportunities for savings. Even if you’re satisfied with your current mortgage, exploring alternative options can provide leverage for negotiating better terms with your existing lender.

Take the time for your seasonal mortgage inspection

If any of these signs resonate with you, consider reaching out! Like your car or your home, your mortgage benefits from a seasonal inspection.  Regularly evaluating it, and making necessary adjustments, can help you make the most of your homeownership journey. Whether it’s taking advantage of lower interest rates, adjusting to changes in your financial situation, or leveraging your home’s equity, a mortgage tune-up can put you on the path to greater financial stability and security. Don’t hesitate to get in touch with me to ensure you’re making informed decisions tailored to your specific needs and goals.

Photo credit: [c] Yulia Gapeenko for vecteezy.com