Renewal with variable income
Stay with your lender or move the mortgage elsewhere? It depends on the income your documents can support this year.
Situation
Your renewal offer arrives after a year when your income moved around.
The starting figures
- Maturity
- In 95 days
- Income – year 1
- $112,000
- Income – year 2
- $78,000
- Additional funds
- $35,000 considered
What the figures tell us
Renewing the same balance with your current lender and asking for extra funds are two different transactions. The moment we transfer or refinance, your variable income goes back under review.
Options to compare
We compare an internal renewal, a transfer with fresh underwriting, and the option of waiting to refinance until your income is better documented.
The trap to avoid
If you wait until the final week and new underwriting is needed, your options narrow fast. And an income average doesn’t always explain a recent drop: that has to be documented.
The decision to make
The choice comes down to this: renew simply now, or wait for stronger records before touching the balance.