A mortgage renewal is an agreement between a borrower and the lender to extend the mortgage to a new term at a new interest rate. Mortgages can renew at the maturity date, or can be early renewed.
Spy Tip: Never accept your lender’s first renewal offer, and possibly not even its second offer. Always shop the market and hold out for a better rate. Use the leverage of competing offers, bluff, stall and do whatever you have to do. The reason: even a 1/10th of a point rate difference saves you up to $480 over five years—per $100,000 of mortgage—depending on your amortization.« Back to Glossary Index