A regular mortgage review is good for your financial health

Image depicts two women speaking to a banker

Every year you probably schedule an annual physical. After the exam, your doctor discusses ways you can maintain or improve your health. You may need to take medicine or exercise more — or simply keep doing what you’re doing.

Similar to your physical health, it’s a good idea to check in annually to monitor your financial health — starting with your mortgage. Because your home may be your largest asset, you should speak with a Home Mortgage Consultant as you think about whether or not adjusting your home financing will help you reach some of your goals for the coming year.

Here’s what typically happens in an annual mortgage update:

1. Discuss your mortgage goals.

You’ll discuss any plans you have in regard to your home with your Home Mortgage Consultant. Here are some questions to consider:

  • Are you planning to stay in your home for more than 10 years, or do you want to sell soon?
  • Do you plan to buy a new home within the next year or so?
  • Do you plan to buy a vacation home or investment property within the next year?
  • Do you want to make home improvements? If so, would you like to use the equity in your home to make them?
  • Will you need to make any other major purchases this year?
  • Are you thinking about changing the payment schedule for your mortgage?

Once you’ve established your mortgage goals, you can then discuss how to maximize your home investment to meet them.

2. Review the terms and conditions of your existing mortgage.

With the help of your Home Mortgage Consultant, you’ll review your existing mortgage balance, monthly payment, and rate. You’ll discuss how these terms and conditions were originally determined, as well as how they compare with today’s market.

3. Discuss your options for the future.

Your mortgage update is a great time for your Home Mortgage Consultant to help you determine whether you’re eligible for any special home borrowing offers. Certain benefits may also be available to you based on your employer, union membership, or military service. Here are some questions you may want to consider, depending on your mortgage goals:

  • Is the time right to modify your rate or term on your mortgage to meet your needs?
  • Should you change your payment schedule (from monthly to bi-weekly, for example) so you can pay off your loan faster?
  • Is it a benefit to maintain your adjustable-rate mortgage, or should you switch to a fixed-rate mortgage?
  • Should you refinance to use the equity in your home for improvements, or use a Home Equity Line of Credit for that purpose?
  • Is there a way to eliminate the mortgage insurance requirement on your loan without increasing your rate? If not, are there other options to consider?

Additionally, it’s a good idea to review your current credit score prior to your mortgage update. That way, you’ll be prepared to ask whether you’re eligible for any available promotional offers. Learn more about how to get your most current credit score here.

4. Keep your mortgage the same or make changes.

It may be that your mortgage already fits your needs and goals. If that’s the case, you’ll have the reassurance that you’re on track until your next mortgage update. If making changes to your home financing makes sense, you can begin the process with your Home Mortgage Consultant.

Reviewing your mortgage today will set you up to achieve the financial goals you’ve established. Schedule an annual mortgage update with your Home Mortgage Consultant to get started.

Don’t have a Home Mortgage Consultant? Find one now.