Annual Mortgage Checkup

Have You Scheduled Your Annual Mortgage Checkup Yet?

By SaleCore on 1/17/2022

It’s a new year and a time of significant change in our world, but what about in your life? In the past year, you may have experienced shifts in employment, had a baby, been married, been divorced or reached retirement age. These are events that can completely alter the course of your life, and yet…your mortgage may have remained the same. This time of year, many of us are thinking about routine annual maintenance: annual physical exams, annual performance reviews, annual auto tune-ups, and even annual spring clean-outs. But, have you scheduled an annual mortgage checkup?


Think about all of the life change you have encountered since taking out that mortgage five, 10 or 20 years ago. With that being said, a mortgage doesn't get better with time, but rather, is likely to grow stale and outdated when left unattended. It does not reflect the latest market interest rates, match your current financial needs or take into account your future plans. Therefore, it is important to evaluate your mortgage loan annually to ensure you've got the absolute best loan for your family's finances and long-term goals. A mortgage checkup is painless, and like your annual physical, is well-advised.

What is a Mortgage Checkup?

Concept of home checkup showing model home under a stethoscope

A mortgage checkup is an in-depth look at your current mortgage and financial situation to ensure that the existing structure maximizes your tax benefits, provides optimal cash-flow, and best suits your financial future. Market conditions fluctuate, your income and finances shift, and your household goals evolve. Given all these changes, your mortgage may need alteration as well. An experienced loan advisor will help you decide what action, if any, is best for you based on your unique situation, whether you're preparing for a significant life change, you want to improve your savings or find out if you can buy a new home.

Preparing for Your Checkup

Simply getting a mortgage checkup doesn't require a credit inquiry or mortgage application unless the conversation leads you to a prequalification, so no need to worry about the impact to your credit report. However, to accurately assess your mortgage needs, it is imperative that you have the following information to discuss with your loan advisor as you talk over your mortgage options.

  • Existing Mortgage Information: Be sure to have up-to-date mortgage information, such as: current home value, monthly payment, interest rate, loan term, balance, and mortgage origination year.
A printed credit report next to a day planner and calculator on a desk
  • Current Financial State: Regardless of the length of time in your existing loan, your financial state has likely changed overtime. Perhaps you have new income or employment, have taken on new long-term debts or paid off existing debts. Maybe your credit score has improved, qualifying you for a better rate. You may be able to afford a higher payment (to pay off your loan sooner) or perhaps you need to decrease your monthly obligation. Also, having a copy of your current credit report and credit score will be helpful to your advisor.
  • Future Plans and Financial Goals: Any known significant changes could also mean additional expenses, and these factors could impact your mortgage decisions. For example, how long do you plan on living in your home? Are you getting married, having a baby, sending a child to college or planning to start a business. To more accurately assess your situation, be sure to disclose these relevant details to your advisor.

The Benefits of Refinancing

Concept image refinance your mortgage

If it hasn't been long since you purchased your home, or even refinanced, you may currently be in the most practical position, but only by performing a mortgage checkup will you know for sure. When reviewing your mortgage with your loan advisor, it will give you an opportunity to crunch the numbers, look at different scenarios, and decide on the best route. One of the most common and viable options your advisor may recommend is to refinance your current mortgage, which could offer many benefits.

  • Lower Interest Rate: Refinancing your loan may help you lower your interest rate and save hundreds on your monthly payment. Throughout the pandemic, mortgage refinancing made headlines as interest rates plummeted, staying below 3 percent. As expected, rates have now begun to move upward, though they still remain in historically low territory. Refinancing at today's rate, compared to 10 years ago, could save you thousands over the life of your loan.
  • New Loan Type: Perhaps you don't need to lower your interest rate, but you could refinance to change an adjustable-rate loan to one with a fixed rate.
  • Shorter Loan Term: Refinancing to reduce the length of your mortgage, from a 30- to a 15-year loan, could help you pay it off sooner.
  • Debt Consolidation: If you're dealing with a number of debts with high or growing interest rates, refinancing could also consolidate multiple loans into one home loan, with a potentially lower rate, and ultimately have the opportunity to save you money in the long run.
A happy couple putting coings in a small pink piggy bank
  • Home Equity: Cash out some of your home's equity for major expenses like college, medical bills, or home upgrades and renovations.
  • Eliminate PMI: If you are locked into Private Mortgage Insurance (PMI), find out if you can request early cancellation and potentially save hundreds a month on this added cost.

Savings. Security. Peace of mind. That's what you can expect when you reach out to your loan advisor and schedule your annual mortgage checkup. With all the change going on in our world, chances are the loan that was working for you a year ago is no longer relevant. And like your health, it's important to make sure you evaluate your mortgage loan at least annually to ensure you've got the absolute best loan for your family's finances and long-term goals.

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