Mortgage Renewal - What typically happens?

[Millions]

I bought a condo about 7 years ago.



Anyways, the mortgage renewal date is June , 2015.



I'm currently at Prime -.5



I'm gonna be likely leaving the country next year and traveling for 2 years or so. Likely, I won't be back for the renewal date...and won't have a formal job (thought I will have income coming from some online businesses)...



What typically happens for a renewal? Do I need to re-qualify? Do I need to be here? What happens if I don't re-qualify?



I missed the last renewal date because I had changed the mortgage a couple of years in..



Wondering the in's and out's when the date approaches..



Thanks!

 

[mortgageman]

When you're approaching renewal you'll be contacted by your lender. It depends on the lender as to how many months out from renewal that is. Typically they will call or mail you a renewal offer. Usually the offer isn't particularly competitive.



When you're up for renewal you are like a free agent professional athlete at the end of your contact. You can stick with your current team (lender) or test the market for a better deal.



If you do want to switch lenders you will have to qualify just like when you first got your mortgage. If you can't qualify because you don't have a job, have bad credit, etc. you'll have to renew with your lender. You can try to negotiate for a lower rate but in a worst case scenario you'll have to take what they offer.



If you've been late or missed payments during the previous term your lender may not want to renew your mortgage. If you've made your payments then you shouldn't have anything to worry about.



If you are travelling, you could contact your lender when you are a month or two out from renewal. I suppose you could also get a power of attorney and have a relative handle it for you.

 

[Sherilynn]

Also, some banks will handle the renewal over the phone and then send you the paperwork to confirm. And some banks will renew 3 months in advance.



Call your bank now and see how their renewal process works. And definitely don't accept the rate offered on the renewal agreement without asking for a better one. Some banks offer horrible rates on their renewal agreements and will cut it dramatically if you simply ask.