They say that in life, few things are certain, but one of those is change. Your circumstances will ebb and flow – maybe you’ve got a new job, dealt with a health issue, or added a new member to the family. For these reasons, it’s great to pause once a year and schedule your annual mortgage review to ensure it’s still serving your needs.
What Does a Mortgage Review Cover?
When you sit down with us at Atlantic Bay Mortgage Group, we’ll start by reviewing how your loan is structured, then look at ways to make any needed adjustments so you’ll get the most benefits. Then we’ll develop a future. Some of the topics you’ll discuss are as follows.
Interest Rate and Term
Because interest rates are constantly changing, we’ll look to see if you’re still getting the best rate. Maybe you originally agreed to a 30-year loan, but your financial picture has improved, and a shorter term, like 15 or 20 years, is better for you. We can help determine if a refinance is worthwhile.
Or, if you have substantial equity and want to pay down some debt, a cash-out refinance could be a good option.
If you’re better off financially now than when you first took out your mortgage, you might be able to increase your monthly payments to pay off your mortgage faster. We’ll let you know if any penalties come with that. Or you may want to lower your payments through refinancing.
In addition to a mortgage review, consider checking in with your insurance agent to be sure you’re still getting the coverage you need for the right price. Bonus: Lower insurance premiums mean a lower mortgage payment.
Eliminating Mortgage Insurance
Mortgage insurance (MI) is required for Conventional loans when your down payment is less than 20%. But if your loan-to-value has increased, you might be able to get rid of that extra cost. Similarly, Federal Housing Authority (FHA) loans come with mortgage insurance for the life of the loan. Still, you may be able to refinance to a Conventional to remove that MI and enjoy some monthly savings.
Like interest rates, your credit score frequently changes, too. If it’s improved since you got your mortgage, you might be able to lower your payments. This new insight into your credit can also help you save money on other debts like high-interest credit cards.
One of the significant advantages of having a mortgage is that it can save you money each year through a mortgage interest write-off. Although you should always speak with a tax professional about your taxes, we can show you options to be sure you’re getting the most tax bang for your mortgage buck.
An annual mortgage review is great for discussing your future financial goals. Have the kids moved out, and you want to downsize? Are you going back to school and need tuition funds? Maybe you want to buy a vacation home or need savings while changing careers. No matter what your dreams are, we can help. Contact Atlantic Bay Mortgage Group today to schedule your annual mortgage review! We’ll take a deeper look at your current financial situation, cash flow, debt, and goals to help you have a happy home that provides security and helps you build wealth for yourself and your family.