Renewal Strategy

⚡ In 20 Seconds

Most homeowners renew their mortgage without properly restructuring their debt or optimizing the overall mortgage structure first.

That can quietly lead to:

• higher monthly payments

• unnecessary interest costs

• reduced flexibility

• higher long-term borrowing costs

Before renewal, we help clients potentially:

• lower monthly payments

• reduce interest costs

• consolidate higher-interest debt

• improve flexibility and cash flow

…often without triggering a refinance.

• ~ $1,400/month lower payments

• ~ $44,000 long-term interest savings

• up to $1,300 toward closing costs

💡 Real Example (What This Actually Looked Like)

Lower Monthly Payments Without Refinancing

For a ~ $639,000 mortgage structure

Long-Term Impact:

• ~ $15,000 in potential savings
over the original 15-year payoff timeline

• ~ $44,000 in potential savings by avoiding refinance-style interest over a 25-year amortization

Added Flexibility:

• Added a $160,000 HELOC

• Covered $1,900 in switching costs for the client

✅ And none of this required a refinance.

It was a properly structured renewal.

That’s the difference.

Result:

• Blended rate reduced from 4.76% → 4.50%

• Monthly payment reduced from $4,950 → $3,550

• Monthly savings: ~$1,400/month (~24% lower)

• Interest savings: ~$7,500 over 5 years

🧩 How This Was Done

🔍 Step 1 — Review the Existing Mortgage Structure

Before doing anything, we reviewed:

• the renewal offer

• the mortgage and HELOC structure

• debts and monthly obligations

• income, credit, and long-term goals

The client already had a bank mortgage structured as a collateral charge with a HELOC attached.

That type of structure can create significantly more flexibility when used strategically.

But the existing debt structure had never been properly optimized around:

• interest costs

• monthly cash flow

• long-term flexibility

🔓 Many homeowners already have financial flexibility built into their mortgage structure —
but never fully use it properly.

The goal wasn’t simply to renew the mortgage.

It was to properly restructure the overall debt strategy before renewal.

Before renewal, we strategically consolidated and reorganized the client’s debt structure.

This reduced the client’s overall blended borrowing cost, lowered required monthly payments, and improved cash flow.

The restructuring was specifically designed to maximize the amount of non-mortgage debt that could later qualify to be repackaged into lower-cost mortgage financing at renewal.

This helped avoid refinance treatment that could permanently increase long-term borrowing costs.

⚠️ Important

Not all debt should be consolidated.

Some balances may be better left outside the structure for tax or long-term planning reasons.

🔀 Step 2 — Restructure Debt Before Renewal

✅ Optimized Renewal Structure

Renewal offer: ~ $416,000 at 4.38%

Repackaged debt: ~ $223,000 at ~ 5.47%

Combined structure: ~ $639,000 at 4.76%

🧱 Existing Structure Before Renewal

• Mortgage balance: ~$416,000

• Approximately 15 years remaining

• Additional debt: ~ $223,000
ranging from 4.38% to +20% interest rates

Some balances were carrying significantly higher interest costs despite lower-cost HELOC access already being available.

🕒 Step 3 — Hidden Opportunities Before Renewal

In this case, the debt restructuring strategy
was implemented a few weeks before the client’s mortgage renewal.

While the final outcome still created substantial savings
and restored financial flexibility, implementing the strategy earlier could have:

• reduced interest costs sooner

• lowered monthly payments earlier

• improved cash flow much earlier

Many homeowners already have mortgage structures
that could support a HELOC, but the feature was never activated —
leaving them to rely on higher-rate unsecured credit with less flexibility.

💡 Reviewing the structure years before renewal may create opportunities
to lower borrowing costs and reduce monthly payments much sooner

Find out whether your current mortgage structure
already contains hidden opportunities to improve cash flow,
reduce borrowing costs, or unlock additional flexibility.

🔒 Step 4 — Preserve Access to Better Long-Term Mortgage Pricing

At renewal, a small number of specialized lenders may allow existing secured balances to transfer into the new mortgage structure without classifying the transaction as a refinance.

Because in many cases, the following can cause the transaction to be treated as a refinance instead:

• adding new debt during renewal

• extending amortization to lower payments

⚠️ Once classified as a refinance, a mortgage may permanently lose access to lower-cost categories — resulting in long-term pricing that’s approximately 0.20%– 0.70% higher.

👀 The Hidden Cost Most Homeowners Never See

Example pricing differences available as of May 7, 2026 for First National Financial.

One of the biggest hidden costs of refinancing is permanently higher mortgage pricing — which is why, when possible, structuring the transition as a renewal or transfer may be far more cost-effective than triggering refinance treatment.

📌 Fixed Rate Comparison

Example based on a ~$639,000 mortgage
over a 25-year amortization.

Renewal Refinance

4.39% 4.79%

~$3,510/mo ~$3,640/mo

~$414,000 interest ~$454,000 interest

Difference

• ~$150/month more

• ~$40,000 additional long-term interest

↕️ Variable Rate Comparison

Example based on a ~$639,000 mortgage
over a 25-year amortization.

Renewal Refinance

3.70% 4.24%

~$3,270/mo ~$3,450/mo

~$342,800 interest ~$396,300 interest

Difference

• ~$180/month more

• ~$53,500 additional long-term interest

🔄 Step 5 — Re-Amortize at Renewal

The client had approximately 15 years remaining on the mortgage.

At renewal, most lenders will not allow amortization extensions
or lower payments without triggering refinance treatment.

💡 However, certain collateral charge mortgage structures may allow the amortization to be extended at renewal by switching to a specialized lender without classifying the transaction as a refinance.

In this case, we re-amortized the mortgage back to 25 years —
significantly lowering the required monthly payment.

With higher rates and rising living costs, many families are finding it increasingly difficult to manage monthly cash flow.

Reducing required payments by approximately $1,400/month can create significant financial flexibility.

🧠 Importantly, the client still has the option to voluntarily increase payments and maintain a faster payoff schedule.

The lower payment creates flexibility — not obligation.

🧱 BEFORE

Existing mortgage

~$416,000 • ~$3,090/mo

Other debts

~$223,000 • ~$1,860/mo

Total Monthly Obligations

• ~$4,950/month

• Total debt structure: ~$639,000

✅ AFTER

New consolidated mortgage

~$639,000 • ~$3,550/mo

Access to ~$160,000 HELOC

Result

• ~$1,400/month lower payments

• ~28% lower monthly obligations

🛡️ Step 6 — Build a Stronger Long-Term Mortgage Structure

Before renewal, we provided the client with a step-by-step restructuring strategy to reposition specific debts internally at the bank so they could later qualify to be consolidated into the new mortgage structure — lowering the client’s overall blended borrowing cost.

Not all existing debt types could be packaged into the new lender’s mortgage structure directly.

💡 Although the bank’s standalone mortgage renewal rate was lower, the remaining debt outside the mortgage structure caused the client’s overall blended borrowing cost to remain approximately

0.26% higher overall.

What The Bank Renewal Option Did NOT Provide

❌ Restored HELOC access

❌ Improved long-term borrowing flexibility

❌ Additional financial protection if circumstances changed later

⚠️ At the time, the client’s existing HELOC was fully utilized —
leaving no remaining secured borrowing capacity.

✅ Lower required monthly payments

~$1,400/month reduction

✅ Restored secured borrowing capacity

~$160,000 HELOC access restored

✅ Improved long-term flexibility

Stronger financial flexibility and protection

💡 Potential savings of approximately ~$44,000

in avoided refinance-style interest costs.

💸 Reducing The Upfront Cost Of Restructuring

🤝 We Covered ~$1,880 In Client Closing Costs

Appraisal

$295

Per diem interest

$315

HELOC setup fee

$510

Legal (closing)

$765 covered upfront

Total costs covered for the client

~$1,885

We covered these costs through our reward and recovery programs
to help reduce the upfront expense of restructuring the mortgage properly.

🔗 View Available Reward & Recovery Programs →

Many homeowners avoid restructuring because of upfront fees.

But in many cases, the long-term cost of doing nothing can be significantly higher.

🔒 Lock In Your $1,300 Closing Cost Reward

No obligation • Takes 30 seconds

🔁 The Real Opportunity At Renewal

Most homeowners renew the exact same mortgage structure they’ve already outgrown.

When structured properly, renewal can sometimes create many of the benefits of a refinance — without triggering normal refinance pricing and penalties.

That’s what happened in the example above.

Not every situation qualifies.

But when it does, the impact can be significant.

📅 Mortgage Renewal Strategy Starts Long Before Renewal

Many homeowners already have opportunities available

inside their current mortgage structure — especially with bank mortgages —

but simply haven’t optimized them yet.

If reviewed early enough, we may be able to help with:

• lower monthly payments

• debt restructuring

• HELOC setup

• improved flexibility

• preserving better long-term pricing

• avoiding unnecessary refinance costs

In many cases, optimizing the structure earlier can make it easier to:

• reduce interest costs sooner

• lower monthly payments earlier

• improve long-term flexibility

• optimize the debt structure more efficiently

⏳ Renewing Soon? It Still May Not Be Too Late

We have helped clients restructure their mortgage:

• within weeks of renewal

• days before maturity

• even during the final week before renewal

📞 If your renewal date is approaching soon,
contact us immediately so we can review the structure right away.

Sometimes small changes made before renewal
can create significant long-term financial impact.

📅 Book a Renewal Strategy Call

Early planning can create significantly more flexibility before renewal.

👥 Know Someone Renewing Soon?

This information may also be helpful for:

• homeowners renewing their mortgage

• anyone carrying higher-interest debt

• someone trying to lower monthly payments

Joel Laceda Mortgage Agent Level 2

BRX Mortgage Inc. FSRA #13463

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