What to Do When Your Mortgage Comes Due
For those of you that are out there that have a mortgage, has your mortgage come due yet? What I mean, is that you usually your mortgage has a five year term and at the end of five years, you sit down with your mortgage broker or banker and setup a new term for your mortgage.
Now, you have a couple of options while you are sitting there with your broker or banker. Your first choice would be to get a mortgage loan. What I mean by that is that you would just setup a new five year term and continue repaying your mortgage. You would be whittling away your loan and getting closer to owning your home debt free.
Another popular option that people look at during this time is a home equity loan. What that allows you to do is borrow against the equity that you have in your home. For those of you who do not know what the equity in your home is, it is the amount of money you paid down on your mortgage (not the interest, just the balance) added to the increase in the value of your home. Usually, people use this style of home refinancing to pay for renovations or perhaps a new garage.
Be sure to consult your mortgage broker or banker before making your decision. Not only will this help your piece of mind but it will ensure that your financial interests are protected.
