Renewal compared before maturity
Your lender sends you an offer. We put it on the same footing as the others: balance, term, privileges, and switching costs included.
Situation
The renewal offer has arrived and you still have time to look elsewhere. That’s exactly when to do it.
The starting figures
- Balance at maturity
- $318,000
- Maturity
- In 110 days
- Remaining amortization
- 19 years
- Additional funds
- $0
What the figures tell us
Renewing with your current lender is simple, but that simplicity tells you nothing about the real cost or the flexibility of the next term. I always compare at the same balance and amortization before we add anything else in.
Options to compare
Three options: renew with your current lender, move the balance elsewhere, or refinance, but that last one only if the amount has to change.
The trap to avoid
A lower rate can hide a heavier penalty or fewer prepayment privileges. It’s the whole contract that counts, not the rate on its own.
The decision to make
Renew, negotiate, or move the balance elsewhere: you decide with the real cost, the product rules, and your plans for the next few years in front of you.