Renewal
Definition
The point where a mortgage term ends and has to be replaced with new conditions, with the same lender or a different one. The balance and remaining amortization carry on; only the rate, the rate type, the term length, and the conditions change. The lender sends an offer before maturity, and signing it without comparing carries over its conditions, not necessarily the best ones. Example: a $280,000 balance and a 0.40 percentage-point gap over 5 years is about $5,600 less interest over the term ($280,000 × 0.40% × 5), before any transfer fees. Compare before the deadline, not the week of maturity.
For your plans
Read the offer with the balance, maturity date, and needs for the next term. The proposed payment alone does not compare penalties, flexibility, or switching costs.