How to Save Money with an Annual Mortgage Checkup

An annual mortgage checkup is when you meet with your mortgage advisor to review your current loan and assess whether it still aligns with your financial goals.

Much like how we visit the doctor annually to catch health issues early, it’s smart to review your mortgage each year. A simple check-in could reveal opportunities to save money, eliminate unnecessary costs or optimize your loan strategy for the future.

Mortgages may come with fixed payments, but they shouldn’t be a set-it-and-forget-it commitment. Your loan is influenced by interest rates, your credit profile, property value and personal goals — which means the rate and terms you started with don’t have to stay the same forever.

Refinancing to a lower rate can reduce your monthly payment — and over a 15- to 30-year commitment, even small changes can result in major savings.

Just like catching a health issue early can save you from expensive treatments down the line, checking in on your mortgage regularly can prevent you from overpaying in the long run.

And the best part? Mortgage checkups are fast and easy to do.

It all begins with a phone call.

Reach out to your mortgage advisor and let them know you’re interested in a mortgage checkup. This simple conversation can help ensure your loan still fits your life.

They’ll likely ask:

Has your income changed?

Whether your income has gone up or down, your mortgage advisor will want to know — because it creates new opportunities.

• If your income has increased, you may be able to make extra payments or refinance into a shorter loan term, potentially saving thousands in interest.
• If your income has decreased, your advisor can explore options to make your mortgage more manageable, such as adjusting the term or refinancing to lower your monthly payments.

Has your credit score improved?

Credit plays a big role in mortgage rates. If your credit score has gone up, you may qualify for a better interest rate and lower payments by refinancing.

Has your home’s value increased?

If your property has appreciated, you may be able to:

• Remove private mortgage insurance (PMI) if you’ve reached 20% equity.

Tap into your equity with a cash-out refinance or home equity line of credit (HELOC) to fund large expenses like renovations, tuition or debt consolidation.

Are you planning to move soon?

If you’re moving in the near future, refinancing might not be worth the upfront costs. Your advisor can help you calculate the break-even point to decide if refinancing still makes sense.

What are your financial goals?

Your mortgage should support your bigger financial picture — whether that’s paying off debt faster, reducing monthly payments, building equity< https://crosscountrymortgage.com/mortgage/loans/home-equity/> or saving for retirement. Your advisor will help tailor your loan strategy to those goals.

So, why should you schedule a mortgage checkup? Here are some of the most common benefits:

• Saving money – If interest rates have dropped or your credit score has improved, you may qualify for a lower rate that could reduce your monthly payment and total loan cost.
• Paying off your loan faster – Your advisor can recommend strategies like biweekly payments or refinancing into a shorter term to help you become mortgage-free sooner.
• Consolidating debt – If you qualify for a HELOC or cash-out refinance, you could use your home’s equity to consolidate high-interest debt into one, potentially lower-interest, payment.
• Eliminating PMI – If you’ve reached 20% equity and are still paying private mortgage insurance< https://crosscountrymortgage.com/mortgage/resources/what-is-private-mortgage-insurance-pmi/>, your advisor can help you request removal or refinance into a loan without PMI.
• Switching loan types – If you currently have an adjustable-rate mortgage (ARM) and want more stability, refinancing into a fixed-rate loan can lock in your rate for the remainder of the term.

Final thoughts

You don’t know what you don’t know — which is exactly why an annual mortgage checkup is such a no-brainer.

From helping you reach your financial goals to finding new ways to save, this quick check-in could make a big difference in your financial future.

So why not make the call and schedule your mortgage checkup? It might just save you thousands.