Should You Pay Down Your Mortgage or Invest Before Renewal?
Paying down your mortgage earns you a guaranteed result equal to your interest rate. Investing might earn more, but nothing is promised, and the value can go down as easily as up. That asymmetry is the starting point for the decision, not the whole answer. The right call also depends on how much time is […]
Self-Employed With a Dropped Income: Can You Still Switch Lenders at Renewal?
Renewing with your current lender usually does not require you to prove your income again. Switching to a new lender does, and the new lender will typically qualify you on your two-year income average, not your best year. If that average has fallen since you last applied, staying put often protects you, while switching can […]
Blend and Extend vs Breaking Your Mortgage: Which One Actually Wins?
A blend-and-extend mortgage averages your current rate with today’s rate over a new, longer term, so you avoid paying a full prepayment penalty upfront. Breaking your mortgage outright means paying that penalty in full, then you’re free to take any rate, from any lender, on any term. The right call depends on how far your […]
Job Loss Right Before Your Mortgage Renewal: Your Options Without Requalifying
If you just lost your job and your mortgage is about to renew, here is the reassuring part first. Renewing with your current lender generally does not require a new income or employment check, so a job loss right before your renewal date does not automatically put your mortgage at risk. Switching to a new […]
Can You Switch Lenders at Renewal If Your Home Value Has Dropped?
Sometimes, yes, but a drop in your home’s value can shrink or close off your switching options, because it raises your loan-to-value ratio (LTV) even if your mortgage balance has gone down. LTV, not just your credit or income, is what a new lender checks first when you try to move your mortgage. If your […]
Should You Choose a 2, 3, or 5 Year Term at Renewal?
The right term at renewal depends on your situation, not on guessing where rates go next. Three questions decide it: how long you expect to keep this mortgage, how much payment certainty you need, and how you feel about negotiating again soon. Answer those three honestly and the term choice mostly picks itself. Pekoe Mortgages […]
Prepayment Privileges Before Renewal: The Best Time to Make a Lump-Sum Payment
The best time to make a lump-sum prepayment is in the weeks right before your mortgage matures, not after you sign your renewal. A dollar paid down before renewal shrinks the balance that reprices at your new term’s rate, and it lets you use this year’s prepayment privilege before it resets. Time it after renewal […]