Don’t Let Your Mortgage Accidentally Roll Into an Open Term
December 10, 2025 | Posted by: Sherry Corbitt
Don’t Let Your Mortgage Accidentally Roll Into an Open Term
(And cost you extra Interest)
One of the most expensive mistakes homeowners make at renewal is doing nothing.
If your mortgage matures and you haven’t renewed in time, most lenders will automatically roll you into an open mortgage. While that sounds harmless, open terms come with much higher interest rates and can quickly cost you more than necessary.
The good news? With proper planning, this is completely avoidable — and it’s often the perfect time to refinance strategically, not just renew.
Common question we get is: What happens if the rates go down before closing?'
If the rates go down prior to your closing, we will work with the lender to float your rate down to the new rate! So getting something committed early and watching for a better rate is an amazing strategy and exactly what we do for you!
Why Refinancing at Renewal Can Be Smart
Renewal time gives you options, including:
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Consolidating high-interest debt
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Accessing equity for renovations or investments
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Adjusting your amortization for cash-flow relief
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Re-shopping your rate and mortgage product
But timing is everything. Once you fall into an open term, your negotiating power and savings drop fast.
The Takeaway
???? Your renewal should be planned, not automatic.
???? An open mortgage should be a strategy, not an accident.
???? A quick check-in 3-4 months before maturity can save you real money.
If your renewal is coming up — or you’re unsure where you stand — a quick conversation now can prevent a very expensive surprise later.
You have options. Let’s discuss them.
Your Mortgage Broker for life.
Sherry
