Being a homeowner, you understand the significance of timely monthly mortgage payments.
If you’ve ever thought about a better, more efficient, or more cost-effective way to manage your mortgage, you’re in good company. The option to refinance may have caught your attention, but figuring out if it matches your current goals and finances may feel overwhelming.
In this article, we’ll break down why many homeowners refinance and help you see if it’s a fit for your family.
Understanding Refinancing
In simple terms, refinancing means replacing your current mortgage with a new one. It may be a wise financial move, but it depends on where you currently stand with your mortgage, credit, and plans for the future.
Here’s what you should keep in mind:
- Interest Rates: If there’s been a noteworthy drop in interest rates since you first got your mortgage, refinancing could potentially lead to significant savings.
- Your Credit Score: Over time, as you consistently make monthly payments and manage your debts, your credit score might improve. A superior credit score may unlock better refinancing rates.
- Closing Costs: Just like your initial mortgage, there will be closing costs associated with refinancing. Make sure the potential savings outweigh these costs.
- Time in Home: Consider how long you plan to stay in your home. If you’re thinking of moving in a few years, the costs of refinancing may not justify the savings.
- Equity: The more equity you have in your home, the easier it might be to refinance or get more favorable terms.
These are just a few factors, and while the decision might seem complicated, it doesn’t have to be. Check out our ‘Should I Refinance?’ Calculator to see how much you’re able to potentially save if you refinanced right now.
Is Refinancing the Right Move for You?
Every homeowner’s situation is unique. Your readiness to refinance hinges on your financial health, personal goals, and how long you plan to stay in your current home. One way to know if refinancing is a smart move for you is to talk to a loan officer. Contact us today to start the conversation and discover how much you could save with a refinance!
Refinance With The Federal Savings Bank Today!
With a strong focus on refinancing, we bring the know-how, tools, and dedicated team to help guide you to potential options. Ready to begin? Click here to start your application and team up with mortgage professionals to discuss our competitive rates.
Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.
This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information on financial planning or investment advice, consult a registered investment advisor or financial planner. For tax advice, please consult a tax professional.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.
