It’s Time to Schedule Your Annual Mortgage Review

They say that in life few things are certain, but one of those is change. Your circumstances will ebb and flow – maybe you’ve gotten a new job, dealt with a health issue, or added a new member to the family. For these reasons, it’s great to pause once a year and take a look at your mortgage to make sure it’s still serving your needs.

When you schedule a complimentary mortgage review with your Mortgage Banker (even if your mortgage isn’t with Atlantic Bay!), we’ll take a deeper look at your current financial situation, cashflow, debt, and goals to make sure your mortgage is doing what it’s meant to do – ensure you have a happy home that provides security and helps you build wealth for you and your family.

What Does a Mortgage Review Cover?

When you sit down with us, we’ll start by reviewing how your loan is structured, then look at ways to make any needed adjustments so you’ll get the most benefits and have a plan for the future. Some of the topics you’ll discuss include…

Interest Rate and Term

Because interest rates are constantly changing, we’ll look to see if you’re still getting the best rate. Maybe you originally agreed to a 30-year loan, but your financial picture has improved and a shorter term like 15 or 20 years is better for you. We can help determine if a refinance is worthwhile.

Or, if you have solid equityThe difference between what your home is worth and what you owe on your mortgage.equityThe difference between what your home is worth and what you owe on your mortgage. and want to pay down some debt, a cash-out refinance could be a good option.

Mortgage Payments

If you’re better off financially now than when you first took out your mortgage, you might be able to increase your monthly payments to pay off your mortgage faster (we’ll will let you know if there are any penalties that come with that). Or you may want to lower your payments through refinancing.

Eliminating Mortgage Insurance

Mortgage insurance (MI) is required for Conventional loans when your down payment is less than 20%, but if your loan-to-valueThe difference between the loan amount and the home’s market value. This helps lenders assess loan risk.loan-to-valueThe difference between the loan amount and the home’s market value. This helps lenders assess loan risk. has increased, you might be able to get rid of that extra cost. Similarly, Federal Housing Authority (FHA) loans come with mortgage insurance for the life of the loan, but you may be able to refinance to a Conventional to remove that MI and enjoy some monthly savings.

Credit Score

Like interest rates, your credit score frequently changes, too. If it’s improved since you got your mortgage, you might be able to lower your payments. This new insight into your credit can also help you save money on other debts like high interest credit cards.

Tax Benefits

One of the great advantages of having a mortgage is that it can save you money each year through a mortgage interest write-off. Although you should always speak with a tax professional about your taxes, we can show you options to be sure you’re getting the most tax bang for your mortgage buck.

Your Goals

A mortgage review is a great time to discuss your future financial goals. Have the kids moved out and you want to downsize? Are you going back to school and need tuition funds? Maybe you want to buy a vacation home, or you need some savings while you change careers. No matter what your dreams are, we can help. Call us today to schedule your review!