Question 1

Should I shop my mortgage at renewal?

Accepted Answer

Absolutely. Lenders often send renewal offers with rates higher than what's available in the market, counting on most borrowers to sign without shopping. Studies show that borrowers who shop their renewal save an average of 0.3%–0.7% in rate, which can mean thousands of dollars over a 5-year term.

Question 2

When should I start shopping for renewal?

Accepted Answer

Start shopping 120 days (4 months) before your maturity date. Most lenders will lock in a rate for 90–120 days at no cost. This gives you time to compare options and negotiate without the pressure of an imminent deadline. Don't wait until 30 days out.

Question 3

Can I change lenders at renewal without a penalty?

Accepted Answer

Yes — switching lenders at your renewal date incurs no prepayment penalty since your term has ended. However, you may need to cover an appraisal fee, a title insurance update, and possibly a discharge fee from your current lender (typically $200–$350). Some new lenders will cover these costs as an incentive.

Question 4

Is it better to take a shorter or longer term at renewal?

Accepted Answer

This depends on your rate outlook and personal plans. Shorter terms (1–3 years) give you flexibility to renegotiate if rates fall, but carry more renewal risk. Longer terms (5 years) offer payment certainty. If you're unsure, a 3-year fixed is a common middle ground in uncertain rate environments.

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