Buying a home is a major milestone in your life, but the journey continues! After a few years, you might be ready to refinance your mortgage. Refinancing your mortgage is getting a new one to replace the original. People do this to get a better interest term and rate or to lower their monthly payments.
Refinancing a mortgage isn’t a simple phone call or online form, and there may be more paperwork involved than when you first bought your home. Here’s how to navigate it and what you can expect.
Find Your Mortgage Refinancing Goal
Before you begin the process of researching different mortgage rates, it’s important to consider why you want to refinance your home loan in the first place. This will help direct your process from the beginning.
Some options are to refinance your mortgage for a lower monthly payment, a shorter loan term, or better interest rates. Lowering monthly payments is the most common goal, however, that usually means you are opting for a longer repayment term.
Shop for the Best Rates
Once you’ve decided on your goal, it’s time to shop for the best rates. Using a mortgage refinance calculator can help you estimate and shop for the best mortgage. On top of that, you should also shop for your best mortgage refinance rate and get estimates from lenders. There are also closing costs that are associated with refinancing your mortgage. Finding deals or low closing costs are also something you should look for.
Luckily for you, RMLEFCU is offering a lender credit of $500 if you are refinancing from a different institution! We have rates as low as 4.0% APR* on a 30-year mortgage or 3.5% APR* for a 15-year mortgage. Don’t hold off on contacting us – this offer is only available through August 31, 2019.
Lowering your monthly rate isn’t the only reason some people refinance. You can also refinance to get rid of mortgage insurance or tap into your home equity as cash in a cash-out refinance.
For any mortgage refinance, there are also fees and expenses. It’s important to have cash on hand to take care of those additional costs.
Refinancing your mortgage for the right reasons and with a good rate and suitable term can enhance your financial position. Contact an RMLEFCU lender today to receive $500 toward your closing costs and great low rates today.