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Mortgage Loan
Mortgage Refinancing
As mortgage rates decline to the lowest levels in a generation, homeowners are flocking to trade in their high-rate mortgage for a lower-rate loan. These individuals are making a very smart move especially if they are taking the time to read all the facts before signing the documents.
Why Refinance?
Save Money. This is the main reason most people refinance. A lower interest rate often translates to lower monthly payments, lowers the total cost of the loan and increases the rate at which you build equity in your home.
Shorten The Loan Term. With lower interest rates, you may choose to refinance for a shorter term and still pay almost the same amount monthly. You’ll also build equity faster and could drastically reduce your overall interest payments.
Convert To A Fixed Rate. In today’s economy you may also be looking for more stability. By converting from an adjustable to a fixed rate you’ll have the peace of mind knowing that your payment amount will never change. However, if you’re planning on moving in a year or two, you may be better off keeping the adjustable rate.
Take Out Cash. You can reduce credit card balances and other debt by obtaining a larger mortgage if you have enough equity in your home, and using the excess cash to pay off those high-rate debts. You’ll then have one monthly payment. This is a great way to lower your debt costs.
Can Anyone Refinance?
To qualify for a refinance, homeowners should meet certain conditions:
Home value. Generally, you must have at least 20% equity in your home in order to qualify. But as home values continue to decline, so does the homeowner’s equity. Keep that in mind when deciding on when to refinance. If home values in your area are falling, it may be wise to refinance sooner than later.
Credit Score. In today’s economic climate, your credit score may be more important than ever especially when refinancing. You can receive a free credit report analysis at TobyFCU to determine if you have any errors of problems that will need to be dealt with before applying for your new mortgage.
Ready?
Again, refinancing your mortgage can save you a significant amount. If you’re ready to get started, here are tips to help:
Check With TobyFCU. Home loans are available from multiple lenders. However rates at credit union especially TobyFCU can be significantly lower. Beware of companies that make unrealistic promises – mortgage scams are on the rise.
Be Sure Of What It Will Cost. Be sure of what the loan’s rates, points and fees are, and calculate exactly how much you will save with a new loan.
Choose A Loan That’s Right For You. Choose the loan term that’s right for you, taking into account how long you plan to stay in your home. TobyFCU offers Home Equity Loans as well as refinancing options with our Mortgage partner 1st Penn Mortgage Group.
Visit 1st Penn Mortgage to Apply For Pre-Approval Now
Or call us for information: 1-866-TobyFCU (9328)
You can also stop by your local branch to see what we can do for you.
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