Your renewal letter arrived — don't just sign it

Your lender mails you a renewal letter with a rate and a signature line. Signing it is the easy thing to do. It's also, very often, the most expensive thing to do. Here's why — and what to do instead.

The offer in that letter isn't usually their best

Lenders know most people don't shop their renewal. They're counting on your inertia. So the rate on that letter is frequently higher than what you could getif you pushed — sometimes meaningfully higher. It's not a scam; it's just business. The catch is that the convenient option and the best option are rarely the same one.

You're allowed to switch

At renewal, you can move your mortgage to a different lender for a better rate, typically without a prepayment penalty. A broker handles the paperwork, and the whole market — banks, credit unions, monoline lenders — competes for you instead of one lender quietly renewing you at their convenience rate.

The best rate you'll ever be offered is the one you're willing to walk away from.

If you're renewing in 2026, read this carefully

A lot of homeowners are renewing right now for the first time since 2021, when rates were near rock bottom. If that's you, your new payment may be noticeably higher than what you've gotten used to — even with rates well off their peak. That's not a reason to panic-sign; it's a reason to plan. There are levers we can pull, like comparing terms, considering a variable rate, or adjusting your amortization to soften the monthly hit.

Your simple renewal game plan

• Start about four months early.That's enough runway to shop properly and switch if it makes sense — not a rushed week before the deadline.
• Get your lender's renewal offer in writing, then bring it to me. It becomes the number to beat.
• Let me shop it against the market. Sometimes your current lender matches a better rate to keep you — which is a win you only get by being ready to leave.
• Then decide. Stay, switch, or restructure — with real options in front of you instead of one line to sign.

One letter, real money

The difference between signing the first offer and shopping it can be thousands of dollars over your next term, for maybe an hour of your time and mine. If your renewal is coming up in the next few months, that's exactly the right time to reach out.