Getting a mortgage involves a huge investment of your time and energy. But when you get the keys at closing and take that first step through your front door, you’re far from done.
Rain or shine, your mortgage payment needs to be paid. What some people might not know, though, is that your mortgage can be managed. And, the better it’s managed, the better off you’ll be financially in both the short and long term.
That’s where an annual mortgage review comes into play. Quicken Loans offers an annual mortgage review that takes into account several factors, which we’ll get into in a minute. In short, it’s an assessment of your monthly mortgage payment that starts with one big question:
Are you still in the right position for the mortgage you have?
If you answer no, the good news is something can usually be done about it.
Think of your annual mortgage review as an annual checkup for your financial health. To stay healthy, you (hopefully) pay your doctor a visit once a year. While you’re there, he or she does an overall physical to make sure you’re in working order. They also run labs to take a closer look at what’s going on behind the scenes. A mortgage review works the same way for you and your home.
When you call one of our mortgage experts, we take an overall look at the term of your loan, the payment you make, the taxes you pay and the insurance coverage you have. We’ll also check your credit and the value of your home. Based on those factors, we develop a treatment plan for you and your mortgage (if necessary) that includes several options.
When should you get a mortgage review? It all depends on what’s going on in your life. An annual mortgage review is always a great idea, but some other factors might make it worth your while as well. Things like the birth of a child, a divorce or a promotion can lead to big financial changes in your life. Looking into how those life events affect your mortgage is another great reason to have it checked out.
What’s a Mortgage Review?
A mortgage review is exactly what it sounds like. When you call, a mortgage expert will work with you to look over your monthly payment in detail. Those factors I mentioned earlier include your credit, mortgage insurance and your income. Based on those factors, and whether or not it’s beneficial, we’ll discuss the options available. If there are opportunities to save you money on your mortgage, we’ll find them. And when we do, you’ll know what they are and how much of a difference we can make in your monthly payment.
Shorten Your Term
Let’s say you’re paying $1000 a month at 5.6% and you have 15 years left on your mortgage. What if you could pay the same amount in mortgage payments, lower your interest rate and cut years off the remainder of your term?
That’s just a rough example, but a mortgage review can uncover opportunities just like that. Shortening the term of your mortgage can get you closer to living life without a mortgage payment that much quicker. Who wouldn’t want that?
Lower Your Interest Rate
There are plenty of reasons you might want to lower the interest rate on your mortgage payment. Some people refinance so they can pay off credit card interest over time, or to invest in a retirement fund. No matter what goals you aim to achieve, lowering your interest rate puts money back in your pocket. The best way to find out if that money can be put to work for you? You guessed it: Your annual mortgage review.
Lowering your interest rate is simple. It leads to a lower monthly payment, and as a result, you’re able to free up cash every month for other things.
If you have more than 20% equity in your home, you might be a good candidate for a cash out loan. If you have a child going to college, a wedding to pay for, you want update your home, or even if you want to pay off high-interest credit cards, a cash out option is a great way to get a low interest loan to pay off expenses.
Let’s use an imaginary family, the Smiths, for this example. The Smiths, when they bought their home, had to take out Private Mortgage Insurance, which added $300 a month to their monthly mortgage payment. For years, they’ve been paying that extra $300, knowing that someday they will build enough equity in their home to eliminate that expense. They go on living their lives, happy in their home until that happens.
Now let’s take another family, the Joneses. The Joneses, after reading a very informative Zing Blog post about annual mortgage reviews (ahem), spoke to a mortgage expert at Quicken Loans. After a quick appraisal, they learned that their property value increased enough to move their loan-to-value ratio below 80%. Their PMI was eliminated, and they had a nice little chunk of change in their pocket every month.
Stay On Top of It All
Your health is one of the most important things you can manage. And, with the help of a doctor, it can be one of the easiest. They can help you stay on track for a healthy lifestyle, and if you’ve got any issues, they can help remedy them. They want to see you succeed and live a long and healthy life.
The same is true for Quicken Loans and your mortgage. We’re more than the company who manages your mortgage. We’re the company that empowers you to make the most of the resources available to you.
The same way you check in with your doctor to make sure your health is in tip-top shape, you can check in with us to make sure your mortgage is operating at optimum performance.
Call (800) 251-9080 today and get the conversation started. After all, you pay a mortgage every month, but if it meant saving you money, why not get a mortgage review every year?
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