Nine Reasons for an Annual Review of Your Mortgage

Mortgage and Lending with The Mortgage Market of Delaware

Nine Reasons for an Annual Review of your Mortgage

This time of year puts us in the frame of mind to check over our financial situation since we are gathering documentation for our tax returns. While we’re at it, we should take a good hard look at our home loan. How many years are left of the term? Could we possibly pay it off earlier or minimize the monthly payment? These are great questions to ask ourselves.   

It is a good idea to evaluate your home loan at least once a year to see if it is serving you well. A home loan is usually the largest financial commitment we make in our lifetimes so we should view it very carefully on a regular basis.

Here are some reasons you may have for changing the loan you have:

1.    If it is an FHA loan, you may be able to refinance into a conventional loan and do away with the mortgage insurance premium.

2.    Perhaps you have 25 years remaining. It might be a wise decision to reduce the term of the loan to 20 or fifteen years. Then, after it is paid off, you could put the monthly amount you would have been making in payments, into retirement accounts. The interest rates on fifteen year loans are usually quite a bit lower than ones for thirty years.

3.    If you have two liens, you may want to combine them into one loan.

4.    If you need to make some home repairs or an addition, you may have equity in your home to take cash out to pay for these.

5.    Your current payment may be uncomfortable. You may be able to refinance into a lower rate and payment.

6.    If you are 62 years of age or older, you may be considering a reverse mortgage.  This option allows you to take money out of your home and eliminate the mortgage payment. You still would have the insurance and taxes but not the principal and interest.

7.    You may qualify for a lower interest rate with the Home Affordable Refinance Programs   (HARP) or with a streamline VA, FHA or USDA loan.

8.    If you have been thinking of purchasing a vacation home or an investment property, you might be able to take funds from your current home.

9.    One way to drastically reduce monthly payments is to consolidate debt. You may have enough equity in your home’s value to be able to pay off debts and reduce the overall interest rate.

These are all good questions to ask ourselves. Contact a reliable mortgage professional to find out if any would be a good solution for you.


Written by:  JoAnn Moore, Licensed Mortgage Professional, President of The Mortgage Market of Delaware, Georgetown, Delaware. Certified Military Housing Specialist, NMLS #165477, Office 302.855.1306, Cell 302.236.1229          

Posted by

JoAnn Moore

Comments (6)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

JoAnn - These are very helpful list of nine reasons for an annual review of a mortgage.

Jan 05, 2015 07:03 AM
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Glad you found the list helpful, John.

Jan 05, 2015 09:31 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

This is great information! I know that your clients are going to appreciate it.

Jan 17, 2015 07:48 AM
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

These are terrific tips, JoAnn, and there were two that I hadn't thought about much before.  Thanks!

Feb 24, 2015 03:29 AM
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Thank you for stopping by Suzanne. I appreciate your comment. 


Feb 24, 2015 09:58 AM
Emily Medvec
eXp Realty LLC - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

Interesting post with good tips for financing. Often people stop at the dream of another home or second home without exploring what is possible. 

Mar 07, 2015 07:39 AM

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?