What is a Mortgage Review?

An annual financial checkup is as important for your finances as a physical is for your health, and your mortgage is a large part of your finances. As your life changes, a mortgage review helps you determine if your loan should change. While an annual review is ideal, you should definitely schedule one now if:

• Your marital status or household income has changed.
• Your interest rate has changed, or will be changing soon.
  
• You have a large upcoming expense.
• It's been at least three years since your last review.
  

In short, a review will help you ensure your mortgage is meeting your changing financial needs.

What's involved?
A mortgage review is similar to applying for a mortgage in the sense that a mortgage expert will work with you to examine your credit, your income, and your current financial situation. In addition, they'll look at your current loan - the interest rate, monthly payment, mortgage insurance, etc. Based on these factors, they can suggest any specific changes that would be beneficial.

Pro Tip:
If you're able to refinance for lower payments, but you don't have any trouble making your current payment, consider continuing to pay the same amount or reduce the mortgage term so you can pay off your mortgage faster.

What are the benefits?
Ideally, your current mortgage is still the best fit for you. However, there are several potential benefits that can include:

• Lower payments. A review might uncover circumstances that can result in a lower monthly payment, such as qualifying for a lower interest rate or having enough equity in your home to eliminate private mortgage insurance (PMI).
• Shorter term. If a lower interest rate is available, you might be able to refinance and shorten your loan term without increasing your monthly payment. Or perhaps you can afford a higher payment but would prefer a shorter loan term. If you'd like to pay your loan off faster, a review gives you the opportunity to determine the best way to meet this goal.
• Cash out or Refinance. If a review reveals you have enough equity in your home, you might refinance and take "cash out." Likewise, you might pay off existing (higher interest) credit to lower your overall monthly payments.
• Qualify for another mortgage. A review can show if you're in the position to finance a vacation home or investment property.
• Status Quo. A review might show that your current mortgage loan is the best fit for you and no action is necessary. This gives you peace of mind knowing you're controlling your finances; your finances aren't controlling you.

If you want to know how your mortgage stacks up, schedule your review today. It's fast, easy, and free and there are no strings attached.

The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.