IT’S NOT ALL ABOUT THE RATE — AMORTIZATION & RENEWALS EXPLAINED
- johnathanmcquoid
- Jan 17
- 2 min read
Most people only focus on their mortgage rate — but your amortization and renewal options can have an even bigger impact on your cash flow.
Here’s what most homeowners don’t realize… find out how 👇
1️⃣ Renewal Time = Opportunity
When your mortgage comes up for renewal, you have options you don’t have at any other time without penalty.
At renewal you can:
✔️ switch lenders
✔️ renegotiate terms
✔️ change amortization
✔️ adjust payment frequency
It’s the best time to restructure your mortgage without fees.
2️⃣ Your Amortization Could Be a Hidden Tool
If you started with a 30-year amortization 10 years ago, you now have 20 years left.
But life changes — kids growing up, tuition coming, income shifts, new expenses.
Instead of refinancing (which may require 20%+ equity), you can use amortization to create flexibility.
3️⃣ Extending the Amortization Increases Cash Flow
Here’s a simple example:
Balance = $400,000
Extend amortization by 5 years → lower payments by ~$320/month
Extend further (if you have 20%+ equity) → lower payments by ~$520/month
This can free up cash flow for:
✔️ tuition
✔️ childcare
✔️ debt reduction
✔️ household expenses
And when things stabilize, you can shorten the amortization again.
4️⃣ You Can Adjust It Again Later
Most lenders allow you to shorten amortization after your situation improves.
You simply request the change through your mortgage broker or lender.
This lets you lower payments when needed — and speed up repayment later.
💡 Why This Matters
Your mortgage is more than just a rate.
Amortization controls your cash flow, flexibility, and long-term financial strategy.
Used properly, it can help you get through expensive life stages without refinancing or penalties.
💬 Final Thought
If your mortgage is coming up for renewal, make sure you explore your amortization options before signing anything.
If you want help reviewing your renewal strategy or adjusting payments, message The Frontline Mortgage Group anytime. 💬