You probably review your insurance, retirement accounts, subscriptions and monthly budget from time to time.
But what about your mortgage?
A lot can change after you buy a home. Your property value may increase. You may build more equity. Your income and expenses may look different. Your family, financial goals or plans for the home may change, too.
That’s why an annual mortgage review can be worth putting on your calendar.
It’s a simple, no-obligation conversation designed to help you understand where you stand today—and you may be surprised by what you learn.
Your Mortgage Today May Look Different Than It Did at Closing
When you bought your home, your mortgage reflected your financial situation and the housing market at that point in time.
Fast-forward a few years, and the picture may have changed.
You may have:
- Paid down a meaningful portion of your loan balance
- Built more home equity than you realize
- Seen your home’s value change
- Improved your credit
- Changed your income or financial priorities
- Reached a point where private mortgage insurance may no longer be necessary
- Started thinking about renovations, major expenses, retirement or your next move
An annual review can help bring all of those pieces together.
You May Be Able to Eliminate PMI
If you purchased your home with less than 20% down, you may be paying private mortgage insurance, or PMI, depending on your loan.
As you pay down your mortgage and build equity, there may come a point when PMI is no longer required, subject to your loan type and applicable requirements.
That could mean eliminating a monthly expense you’ve simply gotten used to paying.
The key is knowing when you may be eligible—and that starts with understanding your current mortgage and equity position.
You May Have More Home Equity Than You Think
Home equity is generally the difference between your home’s current value and what you still owe on your mortgage.
Over time, you may build equity by paying down your loan. Changes in your home’s value can also affect the amount of equity you have.
For many homeowners, that equity can become a financial resource worth understanding.
Depending on your situation and available financing options, you may be able to access a portion of it for a wide range of goals, including:
- Home repairs or renovations
- Tuition or other education expenses
- Medical bills or other large unexpected costs
- Consolidating higher-interest debt
- A wedding or other major life event
- A once-in-a-lifetime trip
- Other financial priorities that matter to you
That doesn’t mean borrowing against your equity is always the right choice.
It means knowing what you have available so you can make an informed decision if an opportunity or need comes up.
Your Needs May Have Changed, Too
Sometimes the most valuable part of a mortgage review isn’t finding a new loan option.
It’s simply stepping back and asking whether your current mortgage still fits your life.
Maybe you’re planning to stay in your home for another 20 years and want to make improvements.
Maybe you’re thinking about moving up, downsizing or building.
Maybe retirement is getting closer.
Or maybe nothing major has changed and your current mortgage is still exactly where it needs to be.
That’s useful information, too.
An annual review isn’t about making a change for the sake of making one. It’s about understanding your options and making sure your mortgage still supports your goals.
What Happens During an Annual Mortgage Review?
The process can be simple.
A PrimeLending loan officer can review your current mortgage, talk through your goals and help you better understand things like:
- Your estimated home equity
- Your current loan structure
- Whether PMI may still be necessary
- Potential refinancing considerations
- Home equity financing options
- Renovation or move-up possibilities
- Other mortgage solutions that may fit what you’re planning next
There’s no obligation to make a change.
You may discover an opportunity you hadn’t considered. Or you may confirm that your current mortgage is still a good fit.
Either way, you walk away with a clearer picture.
You Could Be Surprised by What You Learn
Your home is likely one of your biggest financial assets.
It makes sense to check in on it from time to time.
An annual mortgage review can help you understand how much equity you’ve built, whether there are costs you may be able to eliminate and what financing options could be available if your goals have changed.
And sometimes, the biggest surprise is simply realizing you have more possibilities than you thought.
Is It Time for Your Mortgage Checkup?
If it’s been a year—or several years—since you took a close look at your mortgage, now may be a good time.
A PrimeLending loan officer can help you review where you stand and explore what your mortgage and home equity could mean for what’s next.
