There are many reasons to refinance a home loan. At The Federal Savings Bank we are committed to helping you understand why you should refinance, so you feel empowered to make the right decision.
There are 4 main reasons why refinancing could make sense for you.
If your credit score has improved or interest rates are lower than your current mortgage rate, you may have enough reasons to think a refinance is the right choice. A lower rate means you will pay less money every month.
To make sure you are on the right track, check our refinance calculator to see how a new rate and term could lower your monthly payment.
When you refinance your home, you may borrow more than the amount you owe on your mortgage and can cash out the difference. This is possible by making your monthly payment, which builds equity in your home.
If you want to save money, looking into refinancing the term of your loan could be the solution. Shorter terms often have lower interest rates compared to longer terms. So, after refinancing, you could pay less interest on your monthly payment.
A mortgage refinance can be the tool to consolidate your overall debt. A refinance may put money in your pocket by consolidating all your debts into an individual payment with a better rate.
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.
