Should I Refinance?
Mortgage rates have been on the decline over the last few years. There has never been a better time to get a loan or to save some money on your existing loan by refinancing to a lower rate. Click here to view our rates and find out if we can save you money on your monthly mortgage payment.
Refinancing your mortgage can be one of the smartest financial decisions you ever make. To do it accurately you need to research rates, the housing market and know your individual financial situation.
Consider the following:
1.What is your current rate? What is the current market interest rate? The basic guideline is if the difference between your current rate and the new rate you are approved at is approximately 1.5% or more, it may be a good decision to refinance. Depending on the closing costs, if the difference is 1.5 percentage points or less, it may not make sense to refinance.
2.How long will you live in your home? If you plan on staying in your current house for more than three years, it may save you money by refinancing. If you think you will be moving in less than three years, it might be better to stay with your current loan (unless there is a large variance between your current interest rate and what is available.)
3.Do you have available funds for closing costs? In most cases, you will need funds for closing. Some mortgage loans allow you to "roll" certain closing costs into the new loan, but you will still need some cash for closing.
4.What is happening with the value of your home? If the value of your home is staying the same or increasing, you might increase your home’s equity quicker with a lower interest rate. However, if the value of your home is decreasing, it may not be a good idea to spend money in closing costs.
Mortgage loans processed and underwritten by myCUmortgage, LLC — a wholly-owned subsidiary of Wright-Patt CU, Inc. All loans subject to credit approval and property appraisal