Question:

Hi,

I bought an old house 5 years ago. My mortgage is up for renewal in August. I have no idea what to expect, how to prepare, or if there is anything I should be doing.
Do you have any advice for a novice?
Shirley

Answer:

Hello Shirley,
If I were you, I would look into mortgage financing as soon as possible. Interest rates may soon be on the rise and normal rates can be guaranteed at least 90 days and in some cases 120 days.
I am assuming that the mortgage on your home is arranged with an institutional lender. These types of mortgages can be transferred to a new lender with out cost to you other than a lot of paperwork and a little time.
A mortgage transfer is very simply your old lender selling your mortgage to the new lender. The old lender does not provide any paperwork to the new lender and the new lender needs to create a complete file on you. They will pick up the cost of the legal fees to transfer the mortgage, provided you help them re-create the paperwork in your old file.
Your mortgage should be at lease $60,000 and the new term at least 5 years for most lenders. Cll me at 721-6843 ext 301 if you would like to discuss it further and have some ideas of rates and terms available from a new lender.
John Lozinski

Answered By: John Lozinski

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