In a sense, there are only two main categories of mortgage loans: a purchase mortgage, which you apply for when you buy a home; and a refinance, which pays off and replaces the current existing mortgage on your home. Maybe you’re looking to take cash out from your home to pay down high-interest debt, or perhaps you are simply seeking a preferable interest rate to lower your monthly mortgage payment. Whatever your reasons for taking out a refinance on your home loan, a lender like The Federal Savings Bank is often the best way to meet your financial goals.
When Does it Make Sense to Refinance?
Different applicants have different reasons for seeking a refinance on their homes. A homeowner seeking a “rate-and-term” refinance, for example, may be plagued by high mortgage payments until they read in the news that interest rates happen to be lower than they were when they first acquired their home. By seeking a “rate-and-term refinance,” that homeowner may be able to set their monthly payment at a significantly lower number than what they currently pay.
Homeowners will take out refinances for other reasons as well. If you’ve dedicated a significant period of time to making your monthly mortgage payments on time and in full, you will have built up equity in your home. If this is you, choosing a cash-out refinance could empower you with the capital to purchase a new vehicle, or fund an investment. Refinancing this way will in most cases pay off and replace your current mortgage with a new mortgage. You will be liable for the full balance of the old mortgage, plus whatever cash you have taken out of your equity in the home.
How Do I Save on the Cost of Refinancing?
The Federal Savings Bank is committed to educating homeowners about the perks of refinancing their home. While some lenders will charge high fees and interest rates to refinance borrowers, we proudly offer competitive interest rates on low-cost refinance loans, including those backed by the Department of Veterans Affairs (VA) and the Federal Housing Administration (FHA).
Low-cost refinancing can get you fast access to the cash you need to make kitchen repairs or possibly lower the monthly payment on your lakeside retreat. Don’t wait—speak with a loan officer about your options today!
Subject to credit approval. Terms and conditions may apply. Subject to VA eligibility requirements. Property insurance is required on all loans secured by property.