Mortgage Refinancing: Robins Financial Credit Union


At Robins Financial, we love to help people with refinancing their mortgage. A refinance is when you take out a new mortgage loan to pay off your existing mortgage. And there are few main reasons people decide to do it. It’s generally either to lower your monthly payments, to shorten the term of your mortgage and own your home sooner, or to take cash out. Or perhaps a combination of these. So how do you know when it might be a good time to refinance? Here are six scenarios that could indicate you’re ready for a refi. 1) Interest rates have dropped a point or
two since you took out your original mortgage, and you could refi in order to save money over the life of the loan, and lower your monthly payments. 2) You’re in an adjustable rate mortgage (ARM) and interest rates are rising. You may want to refinance into a fixed rate loan to lock in a better rate. Or perhaps the opposite: Your fixed rate loan is keeping you from getting a better rate because interest rates are dropping significantly and you’re locked in at a much higher rate. 3) You’re wanting a single monthly loan payment, and want to consolidate your first mortgage and your home equity loan. 4) Your credit score has improved since taking out your original mortgage, and you can qualify for a better rate or more favorable loan terms now. 5) Perhaps you’re experiencing some financial hardship, and need to decrease your monthly payments to a more manageable amount. You may be able to do this by refinancing and extending the term of the loan. And finally, 6) You need to get cash out of your home’s equity for a home improvement, college tuition, or other financial needs. With a cash-out refinance, you can pay off your existing mortgage and get cash out in a single loan, unlike a home equity loan, which adds a second loan to your debts. A cash-out refinance may be a good option if in addition to needing cash, you want to reduce your interest rate. Remember that when you refinance a mortgage, you’ll have to go through many of the same steps as when you took out the original loan, including shopping around for the best loan, compiling all of your financial, tax, and employment documentation, and filling out loan applications. Also be prepared to incur many of the same closing costs, taxes, and fees as when you took out your original loan. Including the cost of a new appraisal. You’ll want to be sure these are sufficiently offset by the savings you’ll reap from your refinance. Otherwise it may not be worth it. To get information about Robins Financial mortgage loans, or to use our simple online mortgage calculator, simply call, click, or visit any of our branch locations.

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