How and Why to Refinance a Mortgage
If you’ve ever considered refinancing your home loan, now may be the time as historically low rates persist. By locking in a better rate on your loan, you might reduce your monthly payment and save thousands of dollars in interest on the life of your mortgage. A lower interest rate also could allow you to build equity in your home more quickly.
What Does it Mean to Refinance?
When you refinance, you close your existing mortgage and create a new one. The approval process to refinance is similar to the process of obtaining your original loan. Sun Federal CU will hear your story, consider your income and debt, credit score, and other factors affecting your financial situation.
Your new interest rate will be based primarily on your down payment and credit score. When considering a refinance, you also want to understand your break-even point: Weigh the costs of refinancing against how much you’ll save each month to know when you will recoup costs over the length of your new loan.
Sun Federal CU’s online calculators can help you determine your savings and break-even point. Visit our online Refinance Calculators or our Loan Saver Calculator to “run the numbers.” Then contact a Sun Federal CU loan office for the next steps by calling (800) 786-0945.
The decision to refinance your mortgage should reflect the best way to manage your debt. Sun Federal CU can help evaluate your financial situation and discuss your best options.