Here’s how you can improve your homeownership experience!

If you’re a homeowner, or are about to purchase a home, you of course want to enjoy the experience of homeownership. However, buying and owning a house can sometimes feel stressful, and even unenjoyable, when your mortgage is not in tune with your needs. How can you improve your homeownership journey? Here are some key tips and areas to examine so you can boost your mortgage experience!

Know when to consider refinancing

Throughout your mortgage term, you might start to feel as though your mortgage is no longer meeting your needs. This is fairly common! As we evolve and grow, our mortgages should be able to adapt and change with us. This is when a refinance can come in handy. When you refinance your mortgage, you are adjusting some part of your terms that no longer suit you. For example, you may want to take advantage of prepayment privileges to pay off your mortgage faster. You might also want to switch between a fixed or variable rate product. Recently, there has been a rise in homeowners lengthening their amortization period. This means they will pay their mortgage off over a longer period of time, so they can have more financial breathing room month to month. During times of low rates, homeowners sometimes shorten their amortization period so they can pay off their mortgage more quickly.

The important thing about refinancing is to know when it is worth it. Refinancing requires you to break your current mortgage term, and this often comes with penalties. If you are going to do this, you must ensure you will save more money than you will lose from these extra costs. Otherwise, the refinance is likely not worth the time, effort, or money.

Shop around at renewal time

When your mortgage is up for renewal, you can improve your homeownership experience by looking around at different lender options at this time. You do not have to renew with your current lender! Many homeowners automatically renew with their existing lender, but it is perfectly fine to look around at what else is out there. There might be a product that is a better fit for you than your current one. You don’t want to miss out on your best match! If you are able to secure a better rate, or a product with more flexibility or prepayment options, this is a good time to do so.

Understand interest rates

You certainly do not need to be an expert on the housing market, mortgages, or interest rates! You will have real estate and mortgage professionals to help you improve your homeownership experience. However, it is always a good idea to have a basic understanding of the current market trends. For example, right now, we are dealing with high interest rates, but we can be confident rates will not increase any further for the foreseeable future. Many experts are predicting rates will go down later in 2024, which will give homeowners some relief. Lower rates mean lower mortgage payments, and high payments have been a big stressor for homeowners for a couple of years. If you are about to enter the market, you are doing so during a transition period in terms of interest rates.

Always use a mortgage broker!

The best way to improve your homeownership experience is to use a mortgage broker. This is true whether you are looking to purchase, refinance, consolidate debt, or need any other mortgage service. Brokers are committed to providing clients with the best solutions that are tailored to the individual. Our goal is to ensure you receive the product that fits your needs, and that you feel confident in your mortgage experience. We can help you determine the type of mortgage you should consider, whether it is a good time to refinance, if debt consolidation is a good idea, and more. Using a mortgage broker means having a professional on your side who is always ready to guide you through the market and address any questions or concerns you may have.

Homeownership should be something you enjoy, and not something that causes you constant stress! If you’re trying to improve your homeownership experience, we recommend reaching out to a mortgage broker first. From there, you can determine what course of action to take so you can enjoy homeownership to its fullest extent. We are here to help you gain financial independence and confidence, while also providing you with lifelong mortgage guidance.

If you have any questions about your mortgage, get in touch!