Happy New Year, 2018 is here! If you're anything like me, you're looking to set some goals to make some real progress this coming year! I can't help you with your goals in the gym, but I can help with your financial goals. Here's why now is as good of a time as any (or better) to review your mortgage and assess your financial situation.
1. Save Money With Better Terms
Depending on when you secured your mortgage, by reviewing the terms of your mortgage, there might be a better fit out there for you today. Suppose you locked into a 10 year mortgage term five years ago. There is a chance you could refinance your mortgage into a lower rate, and save thousands over the next five years. Maybe you have a fixed rate, and you'd like to consider the current variable rate, you will never know just how much money you could be saving unless you sit down with an independent mortgage professional and do a formal mortgage review!
2. Aggressively Pay Down Your Mortgage
The new year is a great time to review your current mortgage and make a plan to use your existing pre-payment privileges. Most mortgages allow you to pay down 10–20% of the original principal mortgage amount as a lump sum and/or increase your payments by 10–20%. Just got a raise? Now might be a good time to increase your mortgage payment to match. Any money that you put on your mortgage as a pre-payment goes entirely towards the principal balance and is not a pre-payment of interest.
3. Changes to Mortgage Qualification
If you're planning to make a move in 2018, whether that be buying a new home to accomodate your changing family, or selling your family home to downsize into a condo, there is a chance that the new mortgage rules imposed by our federal government brought in on January 1st 2018 could impact your ability to secure new mortgage financing.
Don't just simply assume you will qualify for a new mortgage just because you already qualified for the mortgage you have now. Things have changed, and your best bet is to give me a shout so we can work through your financial situation.
Have an incredible 2018!