When you secure a mortgage, you probably never thought about the renewal process as there is a lot of paperwork involved in getting approval for a mortgage.
You have signed your mortgage papers by agreeing certain terms on your loan like interest rate, period of mortgage etc.
The renewal of a mortgage occurs when your initial terms come to an end and now you can renegotiate your mortgage terms like period of mortgage, interest rate and even lender itself. This gives an opportunity to the borrower to align his mortgage terms according to his needs.
Renewing and refinancing a mortgage are two different things. In mortgage renewal, the borrower can renew the old terms of the mortgage and set new terms on the pending loan.
On the other hand, in refinancing all your debt is consolidated and a new loan is issued which replaces the old loan. Refinancing helps you in accessing the hidden equity of your house or to get a better rate. Refinancing is helpful to homeowners to merge these high interest debt into a manageable secured debt. This will help if you are doing home renovation or paying your kids to college.