Category Archives: Mortgage

Diamond & Diamond Hosts Mortgage Fraud Seminar | Real Estate Lawyers

Diamond & Diamond Hosts Mortgage Fraud Seminar

Diamond & Diamond Talk Mortgage Fraud at Recent Seminar

Diamond and Diamond lawyers Avi Top and Isaac Zisckind talked to brokers yesterday about mortgage fraud.

Email Avi at for more info. Thank you to Mortgage Outlet Inc. for hosting us at their offices.

Mortgage Renewal Process | Diamond & Diamond Real Estate Lawyers

Mortgage Renewal Process

How to Prepare for the Mortgage Renewal Process

At the conclusion of your mortgage term, if you still owe a balance on that property, you will need to renew the mortgage for another term.

This is also an opportunity to evaluate your current mortgage and compare it with any financial goals you may have recently set.

Your current mortgage provider will notify you of the upcoming renewal in the mail with a slip that you can sign back, but if you want be sure that all of your needs are properly met, you need to take a proactive approach when thinking about your mortgage renewal.

Why You Should Start the Mortgage Renewal Process Early

First of all, begin the process of shopping for your mortgage renewal several months before the term is up.

Approximately, four months before your renewal date many lenders will let you initiate the early mortgage renewal process. This could also assist you with avoiding a pre-payment penalty.

Reevaluating Your Financial Situation

You can also begin researching your options online during this time. Plenty of different things can happen with regard to your financial situation over the course of a mortgage term.

The financial goals that you have at the beginning of your mortgage term may no longer identify with your goals today. You might have retired, lost income or received a raise at work.

Make sure that you have considered all of these individual needs when evaluating a mortgage rate, product and term. Ask yourself the following questions in order to identify what you are looking for in a mortgage product when it is time to renew:

  • Will you be able to pay off the mortgage entirely in the next term?
  • Will you receive any additional funds like inheritances or bonuses that could be put towards your mortgage payment?
  • Do you have room in your budget to increase your payment amount on your mortgage?
  • Do you have any intention of borrowing more money from your lender over the course of this next term?

Being Ready to Renew Within 30 Days

The final stage of preparing for the renewal process is being ready to renew in the final thirty days.

Your lender has to send you a renewal statement, a minimum of 21 days before the term is up, but you will usually receive a renewal offer with their lowest posted rate, approximately 30 days before the maturity.

When it’s Time to Make a Decision

After you have considered your financial goals, outlined your needs and asked yourself critical questions; it is time to make a decision. Identify whether or not your current lender or another lender is offering you the best mortgage rate and product at this particular period in time.

Although there will be some paperwork involved in switching providers, you may be eligible to access better mortgage rates by doing this.

Your new lender’s qualifying criteria may be separate from your current lenders, so be prepared to do the research in advance so that you know what to expect.

Mortgage Renewal Tips | Diamond & Diamond Real Estate Lawyers

Mortgage Renewal Tips

What to Think About When Renewing Your Mortgage

Your mortgage payment may be a high expense in your monthly budget, but when mortgage term comes up for renewal, lenders may tempt you to stay with them by sending you out a renewal offer that simply requires your signature in response.

However, it is often in your best interest to do some research on your own.

Mortgage Renewal Tips

One of the most important steps that you can take without the mortgage renewal process is to start shopping around for a new mortgage rate as early as four months prior to your product renewal.

You may be eligible to ask for a better rate. Renewal offers will be mailed to you by the lender within the last 30 days of your mortgage term, but many will even send this sooner.

Mortgage lenders may offer you a discount off of the posted rate for being an existing client. However, it might lead to you paying a higher interest rate than you actually need to if you’ve shopped around instead.

Bear in mind that the best lender at the time of taking out your mortgage may not be the best lender now.

After you have identified a mortgage rate and a product that you are happy with, ask for a rate hold.

The majority of lenders will enable you to hold the rate for up to 120 days, meaning that you can come back later and achieve this rate. This gives you some peace of mind if you are concerned that your rates may otherwise go up before you renew.

Bear in mind that switching providers takes time and may lead to delays, paperwork or even some additional costs, but it can ultimately end up being worth it in the long run if you are able to reduce your existing mortgage rate.

How to Lower Your Mortgage Rate | Diamond & Diamond

How to Lower Your Mortgage Rate

Steps to Lower Your Mortgage Rate

For most people, their monthly mortgage is their biggest expense. While a home is also an important investment and one that serves you in many ways, it’s always wise to be mindful of opportunities to decrease your mortgage rate so that you can reduce the overall amount due.

Is Refinancing Right For You?

To secure a low rate mortgage, you may wish to refinance your mortgage. This can help save you money over the long run. Bear in mind that before you do this, you need to understand your refinance penalty and how this may affect your potential savings.

The largest cost of refinancing frequently comes in the form of your mortgage breakage penalty.

Variable vs. Fixed Mortgage Rates

This is used to help the lender recover some of the lost revenue associated with determination of your mortgage contract. Within a variable mortgage you’d be responsible for paying three months’ interest.

On a fixed rate mortgage, you will have to pay the interest rate differential or three months’ interest, whichever is greater.

You may also be responsible for legal fees associated with registering a new mortgage on your home. The legal fees may be covered if the mortgage loan is between $250,000 and $300,000.

Consider tapping into some of your home’s equity to consolidate debt or finance additional projects if you wish to refinance to a lower mortgage rate.

You may be able to consolidate all of this debt together by taking outstanding personal lines of credit, auto loans, or credit card debt and combining all of this debt into your mortgage.

Switching Mortgage Providers | Diamond & Diamond Real Estate Law

Switching Mortgage Providers

Does it Make Sense to Switch Mortgage Providers?

When it is time for your renewal term with your mortgage lender, you have an important decision to make. You may want to switch providers or stay with your current lender, depending on what is being offered.

There are two primary reasons when it makes sense to switch to a new provider.

Reason #1

First of all, you may be looking for different terms and conditions. If another lender is offering you better terms and conditions, you may wish to switch your mortgage over to them.

Your pre-payment options are the most common reasons why individuals would consider switching to different mortgage providers.

Reason #2

The second primary reason why you may wish to switch mortgage providers is to get a lower mortgage rate. This could save you up to thousands of dollars in interest charges.

Make sure that you shop around and gather all of the relevant information before committing to a new provider. You need to calculate the money and determine how this will affect your monthly payments as well as the long run.

You may have pre-payment privileges, where you can increase your monthly mortgage payments by 10% once every single year.

Your monthly mortgage payment would go up if you only do this once at the beginning of your new five-year term. This could help save you a significant interest payments.

You may also be eligible to increase your monthly mortgage payment by 20% depending on your lender. If you wish to switch providers, you will need to provide the following information with your application:

  • Proof of property insurance
  • A copy of your current lender’s mortgage renewal letter.
  • Proof that you own the home.
  • Confirmation of your income.

There may be fees associated with switching the lender as well.

Is Early Mortgage Renewal Right For You? | Diamond & Diamond Real Estate Lawyers

Is Early Mortgage Renewal Right For You?

How to Know if Early Mortgage Renewal is Right for You

If there is still an outstanding balance on your mortgage at the conclusion of your mortgage term, you will be responsible for renewing for another term.

Your lender is responsible for notifying you 21 days before your term is up, but the majority of lenders will allow you to renew anytime within the final four months of your current mortgage term without paying the penalty for breaking your term early.

During this four-month period, lenders will contact you with an early renewal offer. This will usually outline a rate as well as a term and a letter that you may be eligible to sign and mail back.

However, it may be in your best interest to shop around and identify whether an early mortgage renewal is truly in your best interest.

Why You Should Shop Around for Mortgage Renewals

By shopping around, you may be able to identify a rate and term that is more in line with your individual needs.

If you get an offer early from your lender, evaluate the interest rate. Remember that it is very unlikely that the lender who gave you the best rate the last time around will be able to give you the lowest mortgage rate on the market today.

This is why you want to shop around with other lenders until you can identify the lowest rate.
Your best option is to switch providers if you want to give the best mortgage rate when it is time to renew your mortgage.

Shop around in the last four months before your official renewal date so that you can select a new lender with a new rate and complete all of the paper work necessary well in advance.