Taking out a mortgage loan is a 10 to 30-year commitment, but it doesn’t mean that you’re stuck with that payment arrangement for the entire life of your loan. Refinancing your home can make your monthly payments more manageable.
How Does Refinancing a Home Work?
The refinancing process is very similar to the process of getting your original mortgage loan. It involves shopping around for a loan from various lenders, comparing interest rates and terms, and then seeing if the new loan will be better than your existing one. Keep in mind, you’ll also want to consider closing costs during the process. At People’s Community Federal Credit Union, you are not a number. Every member gets the same rate, regardless of credit score. If you are approved for a home loan, your credit score doesn’t matter.
The only difference in rate is based on the term of the loan. For example, 30-year loans will have higher interest rates than 15-year loans.
What are the Advantages of Refinancing?
Refinancing your home comes with a few advantages. First, it can lower your interest rate by reducing the loan term. For example, your 30-year loan can shorten to 15. Refinancing can also lower your monthly payment by lengthening the loan term.
When Should I Refinance My Mortgage?
Here are some reasons why it may be a good idea to refinance your home.
- Interest rates have dropped significantly: if interest rates are much lower now than they were when you first purchased your home, you could save thousands of dollars in interest by refinancing at a lower rate.
- Your property value has increased: if the value of your property has increased, refinancing could allow you to liquidate some of its equity.
- Your credit score has improved: At most institutions if you have a high credit score, you’ll likely have a higher interest rate. So if your credit score has improved since you first purchased your home, refinancing could secure you with a loan with a much lower interest rate. At People’s however, you are not a number and the interest rate does not change based on your credit score. Everyone gets the same great rate!
Refinance Your Mortgage
If you’re ready to refinance your mortgage, turn to People’s Community Federal Credit Union in Clark County WA. We offer fixed-rate mortgages with terms of 10 years to 30 years. We don’t sell our loans to other lenders and we handle everything locally through the life of your mortgage. Plus, at People’s, everyone gets the same low rate regardless of your credit score!
Should I Refinance My Home? in Vancouver WA
5 Local Branches Serving Greater Vancouver WA: