Mortgage Renewal
Quick Summary
Signing a new term with your lender when your current mortgage term ends.
ELI5 Explanation
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Your mortgage deal expires, and you choose the next deal.
Detailed Explanation
At renewal, you can accept your lender’s offer, negotiate, or switch lenders. Renewal is a key moment to reassess rate type (fixed vs variable), term length, and whether you plan to refinance, because switching may involve qualification and closing costs.
Example
A borrower renews into a 2-year fixed term or switches lenders to reduce rate and improve prepayment flexibility.
Why It Matters
Renewal affects your next few years of payments and is often the easiest time to change strategy without large penalties.