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Time to renew your mortgage?
If you've been paying steadily, you're probably feeling pleased with the progress
you've made. What may have seemed like an impossibly huge sum when you first signed
those papers has been chipped away slowly but surely.
Your home is not only your most important investment but also the precious center
of your family life and should be cared for and treasured. You should feel proud
of all you've accomplished.
Just one question: has staying on top of those mortgage payments been preventing
you from making the home improvements you've been wishing for?
It's understandable that you may have been hesitant to add another monthly loan
payment to your responsibilities, but mortgage renewal time is the perfect opportunity
to make some adjustments to help you upgrade your home into an even more valuable
asset.
Because you will be sitting down with the mortgage officer at your financial institution
to discuss the terms of your new mortgage, the time is perfect to build in some
funds for home repairs and renovations. After discussing your plans with your financial
institution, arrangements will be made to provide you with the funds you need and
the payments will be blended into your new mortgage. Not only will you not have
a new or separate bill to worry about each month, but you'll also be able to enjoy
the same lower interest rate on the money you borrow that you have on your mortgage.
You've earned it by faithfully making those mortgage payments!
Your method of repayment will be up to you. If you prefer simply to extend the life
of your mortgage to cover the additional money borrowed, that's a possibility. While
this might be the costlier option – given that the longer you take to pay, the more
interest will accrue – it may be the choice for those who simply can't afford to
increase their monthly financial obligations but are in pressing need of home repairs.
If you think you'd prefer to pay down the principal of your new mortgage more quickly,
be sure to ask your mortgage officer what repayment options would be open to you
before finalizing any arrangements. There may be opportunities to reduce the principal
more quickly and save on interest.
Some homeowners prefer not to add the cost of repairs and renovation to their mortgages,
but choose instead to set up a low-interest line of credit, secured against the
equity in their home. Although this does involve adding a new envelope to the monthly
pile of bills, a line of credit charges interest only on the amount of money you
actually withdraw each month, and can be paid back as quickly as you like. The important
thing is that the good credit record you've developed as a result of your mortgage
payment history will qualify you for a line of credit substantial enough to achieve
your home rejuvenation dreams.
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Discover the Meridian diference! With branch locations at Speedvale, Stone Square,
Fergus and our Guelph/Wellington Commercial Business Centre, we will be more accessible
than ever before! Come in and meet our staff and experience a personalized approach
to full-service banking!
