Annual Mortgage Review: Why Do I Need One?

Why You Should Do an Annual Mortgage Review with Acadia Lending Group

It's common for us to take proactive care of our physical health. We schedule annual checkups with our doctors, visit the dentist for regular cleanings, and make lifestyle changes to stay healthy. But did you know that your financial health deserves the same level of attention? That’s where an annual mortgage review comes in.

One of the most significant financial commitments you have is your mortgage, yet many homeowners “set it and forget it” after closing on their home. While you may diligently make your monthly payments, there could be opportunities to save money, reduce debt faster, or leverage your home equity to meet other financial goals. That's why we at Acadia Lending Group encourage all our clients to schedule an annual mortgage checkup.

What is an Annual Mortgage Review?

An annual mortgage checkup is a financial health review of your home loan, conducted with your trusted mortgage advisor at Acadia Lending Group. During this consultation, we evaluate the terms of your current mortgage and discuss any changes in your financial situation to ensure your loan still aligns with your needs and long-term goals.

By scheduling this yearly check-in, you can uncover ways to potentially lower your monthly payments, pay off your mortgage sooner, or even access funds for important expenses like home renovations or education costs. The real estate and financial markets change constantly, and an annual review ensures you’re always making the most of your mortgage.

What Information Do You Need for an Annual Mortgage Review?

To get the most out of your mortgage review, it helps to gather some key financial information ahead of time. Here are some important questions we may ask and why they matter:

• Has your income increased since you closed your loan?

If you're earning more now than when you took out your mortgage, you might have room in your budget to make extra payments or refinance into a shorter loan term. Paying down your mortgage faster could save you thousands in interest.

• Has your income decreased?

If your financial situation has changed and you're feeling stretched thin, you may want to explore refinancing options to lower your monthly payment. We can also discuss loan modification options, which could adjust your loan terms to better fit your current budget.

• Has your credit score improved?

A stronger credit score can open the door to refinancing at a lower interest rate. If your score has gone up since you closed on your loan, you might be eligible for a better deal, potentially saving you money over the life of your mortgage.

• Have home values increased in your area?

Rising home values could mean you have more equity in your home than you realize. This could allow you to eliminate private mortgage insurance (PMI) if your equity has reached 20% or more, reducing your monthly payment. It also means you may be able to tap into your home's equity through a cash-out refinance to fund home improvements, pay off high-interest debt, or cover major life expenses.

• What are your future plans for the home?

If you're thinking about moving in the near future, refinancing may not make sense. However, if you plan to stay for years to come, restructuring your mortgage to take advantage of better terms could be beneficial. We'll help you make the right decision based on your future goals.

• What are your overall financial goals?

Whether you want to pay off your mortgage early, reduce your monthly expenses, invest in a second property, or start a business, your home loan plays a crucial role in your financial strategy. We'll help align your mortgage with your big-picture goals.

The Benefits of an Annual Mortgage Review

We know that life gets busy, but setting aside 15 minutes for a mortgage review with your loan officer can be a game-changer.

Here’s why it’s worth it:

• Save Money

Refinancing your mortgage could mean a lower interest rate, reducing your monthly payment and overall interest costs. Even a small rate drop can add up to significant savings over time.

• Pay Down Your Mortgage Faster

If you're in a better financial position now, you might be able to increase your payments or switch to a shorter-term loan. This can help you pay off your mortgage sooner and save on interest.

• Consolidate Debt

If you have high-interest debt, such as credit cards or personal loans, a cash-out refinance could allow you to consolidate that debt into your mortgage at a much lower interest rate, simplifying your finances and reducing overall costs.

• Eliminate Private Mortgage Insurance (PMI)

If your home value has increased, your equity may have reached the 20% threshold required to drop PMI. This could reduce your monthly payment, putting more money back in your pocket.

• Adjust Your Loan Terms

Perhaps you started with an adjustable-rate mortgage (ARM) and want to switch to a fixed-rate loan for stability, or you're considering a different loan structure to improve cash flow. We'll explore the best options based on your current situation and future plans.

Why Choose Acadia Lending Group for Your Mortgage Review?

At Acadia Lending Group, we pride ourselves on being Maine's most trusted home mortgage lender. With our transparent approach, exceptional customer service, and unmatched expertise, we make sure you're always getting the best mortgage solution for your needs. Our team is here to help you navigate the ever-changing mortgage landscape with confidence and ease.

We've helped countless homeowners save money, restructure their loans, and achieve their financial dreams. Whether you're looking to lower your interest rate, tap into your home equity, or simply ensure you're on the best path forward, we're here to guide you every step of the way.

Schedule Your Annual Mortgage Checkup Today

Your mortgage isn't just a loan - it's a powerful financial tool that should evolve with your life. Don't leave money on the table or miss out on opportunities to strengthen your financial future.

Schedule your annual mortgage review with Acadia Lending Group today and let's make sure your home loan is working as hard for you as you do for it!

Contact your mortgage advisor today to book your free mortgage checkup!